ITO 27 (3)(2), MUMBAI V. RIJU RAMKRISHNAN, MUMBAI

ITA 6212/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0413 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 31-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIM KUMAR MODI
• Assessee Lawyers: S M BANDI
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

P A G E | 1 ITA NO. 6212/MUM/2018 AY. 2010 - 11 INCOME TAX OFFICER - 27(3)(2) VS. SHRI RIJU RAMKRISHNAN IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI RAJESH KUMAR (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NO. 6212/MUM/2018 (ASSESSMENT YEAR: 2010 - 11) INCOME TAX OFFICER - 27(3)(2) R. NO. 425, 4 TH FLOOR, TOWER NO. 6, VASHI RAILWAY STATION, VASHI, NAVI MUMBAI 400703 VS. SHRI RIJU RAMKRISHNAN 4899, BUILDING NO. 145, TILAK NAGAR, CHEMBUR, MUMBAI - 400089 PAN NO. AEHPR2109C APPELLANT RESPONDENT REVENUE BY : MR. ASHIM KUMAR MODI , D.R ASSESSEE BY : MR. S.M. BANDI , A.R DATE OF HEARING : 09 /09/2019 DATE OF PRONOUNCEMENT : 0 9 /09/2019 ORDER PER RAVISH SOOD, JM THIS IS AN APPEAL FILED BY THE REVENUE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMIS SIONER OF INCOME TAX (APPEALS) - 25 , MUMBAI [IN SHORT CIT(A)] AND ARISES OUT OF THE ASSESSMENT ORDER UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX ACT 1961, (THE ACT). 2. CEN TRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH COURTS AND SLPS/APPEALS BE FORE SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. 3. CBDT VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - . FOR THIS PURCHASE, TAX EFFECT MEANS TH E DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. FURTHER, TAX EFFECT SHALL BE TAXES INCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT P A G E | 2 ITA NO. 6212/MUM/2018 AY. 2010 - 11 INCOME TAX OFFICER - 27(3)(2) VS. SHRI RIJU RAMKRISHNAN INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDER, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER T O BE APPEALED AGAINST. AT PARA 13 OF THE ABOVE CIRCULAR, IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019 HAS FIXED THE MONETARY LIMIT FOR F ILING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. IN THE INSTANT APPEAL FILED BY THE DEPARTMENT, THE TAX EFFECT INVOLVED IS BELOW THE MONETARY LIMIT OF RS.50,00,000/ - . THE SAME WAS BROUGHT TO THE NOTICE OF THE LD. DEPARTMENTAL REPRESENTATIVE (DR) AND THE LD. COUNSEL FOR THE ASSESSEE. 6. BEFORE US, THE LD. DR SUBMITS THAT LIBERTY MAY KINDLY BE GIVEN TO RAISE, AFTER NECESSARY FURTHER VERIFICATION, AND TO SEEK RECALL THE DISMISSAL OF APPEAL AND RESTORATION OF THE APPEAL IN CASE IT CAN BE SHOWN THAT THE APPEA L IS COVERED BY THE EXCEPTIONS. 7. WE AGREE WITH THE ABOVE CONTENTIONS OF THE LD. DR AND MAKE IT CLEAR THAT THE APPELLANT SHALL BE AT LIBERTY TO POINT OUT THE EXCEPTIONS AND WE WILL TAKE APPROPRIATE REMEDIAL MEASURES IN THIS REGARD. 8. WITH THE ABOVE OBSE RVATIONS, THIS APPEAL INVOLVING TAX EFFECT OF LESS THAN RS.50,00,000/ - IS DISMISSED AS WITHDRAWN. ORDER PRO NOUNCED IN THE OPEN COURT ON 0 9 /09/2019. S D / - S D / - ( RAJESH KUMAR ) ( RAVISH SOOD ) ACCOUNTANT MEMBER J UDICIAL MEMBER MUMBAI ; DATED: 0 9 /09/2019 ROHIT, P.S. P A G E | 3 ITA NO. 6212/MUM/2018 AY. 2010 - 11 INCOME TAX OFFICER - 27(3)(2) VS. SHRI RIJU RAMKRISHNAN COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) ITAT, MUMBAI