DCIT CENT. CIR. - 4(4), CENTRAL RANGE- 4, MUMBAI V. SIMPLEX REALTY LTD., MUMBAI

ITA 603/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0278 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 01-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL LOHIA
• Assessee Lawyers: V VINOD KUMAR
• Keywords: Tax effect
• Section: 201

Judgement Text

ITA NO . 603/MUM/2018 ASSESSMENT YEAR: 2014 - 15 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAIG BENCH, MUMBAI [CORAM: PRAMOD KUMAR (VICE PRESIDENT) AND SAKTIJIT DEY (JUDICIAL MEMBER) ITA NO. 603/MUM/2018 ASSESSMENT YEAR: 2014 - 15 DEPUTY COMMISSIONER OF INCOME TAX RESPONDENT CENTRAL CIRCLE 4(4), CENTRAL RANGE - 4 MUMBAI VS M/S. SIMPLEX REALTY LIMITED APPELLANT KESHAVRAO KHADYE MARG, SANT GADGE MAHARAJ CHOWK, MAHALAXMI (E), MUMBAI 400011 [PAN:AAACT4056E] APPEARANCES BY V. VINOD KUMAR FOR THE RESPONDENT ANIL LOHIA FOR THE APPELLANT DATE OF CONCLUDING THE HEARING: SEPTEMBER 18 TH , 2019 DATE OF PRONOUNCEMENT : DECEMBER 16 TH , 2019 ORDER PER PRAMOD KUMAR, VP: 1. BY WAY OF TH IS APPEAL , THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 6 TH NOVEMBER , 201 7 PASSED BY THE LEARNED CIT(A) - 52 , MUMBAI FOR THE ASSESSMENT YEAR 2014 - 15 . 2. GRIEVANCES RAISED BY THE ASSESSING OFFICER ARE AS FOLLOWS: ITA NO . 603/MUM/2018 ASSESSMENT YEAR: 2014 - 15 PAGE 2 OF 3 1. ' ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN DELETING THE ADDITION OF RS. 73,76,522/ - MADE BY THE AO BY APPLYING THE PROVISION OF ULC ACT AS AGAINST THE VALUE OF RS. 260 PER SQ.FT ADOPTED BY THE ASSESSEE. 2. ' ON THE FACTS AND CIRCUMS TANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN DELETING THE DISALLOWANCE OF INTEREST CLAIMED AT RS. 34,18,562/ - IN RESPECT OF LINE OF CREDIT AVAILED FROM HDFC TOWARDS REPAYMENT OF LOANS TO FINANCIAL INSTITUTIONS RAISED FOR REPAYMENT OF LOAN TO BANKS ETC. AND VRS EXPENDITURE. 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PRESENT APPEAL OF THE REVENUE NEEDS TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 WHEREBY TH E MONETARY LIMITS FOR FILING THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL WAS ENHANCED FROM RS.20 LAKHS TO RS.50 LAKHS. THIS INSTRUCTION IS APPLICABLE TO THE PENDING CASES ALSO. THEREFORE, THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED AS NO N - MAINTAINABLE AS HELD BY THIS TRIBUNAL IN THE CASE OF ITO VS. DINESH MADHAVLAL PATEL IN ITA NO.1398/AHD/2004 FOR AY 1998 - 99 VIDE A CONSOLIDATED ORDER DATED 14.08.2019. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FAIRLY ADMITTED THAT THE TAX EFFECT INV OLVED IN THIS APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY THE AFORESAID CBDT CIRCULAR. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. AS LEARNED COU NSEL RIGHTLY CONTENDS, THIS APPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE IN VIEW OF THE RECENT CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019. THE MANDATORY LIMIT FOR CASES IN WHICH REVENUE CAN CHALLENGE THE RELIEF GRANTED BY THE CIT(A) NOW STANDS ENHANC ED ITA NO . 603/MUM/2018 ASSESSMENT YEAR: 2014 - 15 PAGE 3 OF 3 TO RS.50 LAKHS. THIS CONCESSION GRANTED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) IS RETROSPECTIVE IN EFFECT INASMUCH AS IT APPLIES TO ALL PENDING APPEALS AS WELL. IN VIEW OF THE ABOVE POSITION, THE APPEAL OF THE REVENUE IS NO LONGER MAINTAINABLE AN D MUST BE DISMISSED AS SUCH. 6. IT IS, HOWEVER, MADE CLEAR THAT ON RE - VERIFICATION AT THE END OF THE ASSESSING OFFICER IT COMES OUT THAT THE TAX EFFECT OF MORE THAN RS.50 LAKHS IS BEING INVOLVED IN THE APPEAL OR THE APPEAL FALLS WITHIN THE EXEMPTION CLA USE OF THE CIRCULAR, THEN THE REVENUE WILL BE AT LIBERTY TO FILE MISCELLANEOUS APPLICATION TO RECALL THE TRIBUNAL ORDER. THE APPLICATION SHOULD BE FILED WITHIN TIME LIMIT PRESCRIBED IN THE ACT. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED DUE TO L OW TAX EFFECT. PRONOUNCED IN THE OPEN COURT TODAY ON THE 16 TH DECEMBER , 2019. SD/ - SD/ - SAKTIJIT DEY PRAMOD KUMAR (JUDICIAL MEMBER) (VICE PRESIDENT) MUMBAI, DATED THE 16 TH OF DECEMBER , 2019 NISHANT VERMA SR.PS COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, MUMBAI