DCIT 10(), MUMBAI V. PURITY TEXTILES P.LTD, MUMBAI

ITA 6221/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2030 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 08-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI RAMLAL NEGI, JUDICIAL MEMBER S. NO. ITA NO.& A.Y APPELLANT RESPONDENT APPELLANT BY RESPONDENT BY 1 6221/M/14, AY 2010-11 DCIT-10(1), 453, 4 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI 400020 PURITY TEXTILES PVT. LTD., 601, LAXMI TOWERS, 6 TH FLOOR, A WING BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI -51 PAN:AAACP2551Q SHRI B. SATAYANARAYANA RAJU NONE 2. 6222/M/14, AY 2010-11 DCIT-10(1), 453, 4 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI 400020 KHOSLA PROFIL PVT.LTD., 2B, LAXMI TOWER, 8 TH FLOOR, B WING, BEHIND ICICI BANK LTD. BANDRA KURLA COMPLEX, BANDRA (E),MUMBAI -51 PAN:AAACK1791K SHRI B. SATAYANARAYANA RAJU NONE 3. 6266/M/14, A.Y 2010-11 DCIT-10(1), 453, 4 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI 400020 M/S. ASREC(INDIA)LTD, SOLITAIRE CORPORATE PARK, BUILDING NO.2, UNIT NO.201- 202A&200-202B, GROUND FLR., ANDHERI GHATKOPAR LINK RD., CHAKALA, ANDHERI (E), MUMBAI -93 PAN: AAECA 7990G SHRI B. SATAYANARAYANA RAJU NONE 4. 6275/M/14, A.Y 2010-11 DCIT-10(1), 453, 4 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI 400020 M/S.K.G.FOUNDERS PVT. LTD., 3, RANKA HOUSE, BAIL BAZAR, KALE MARG, KURLA ANDHERI RD., KURLA(W), MUMBAI 400072, PAN:AAACG 4385 SHRI B. SATAYANARAYANA RAJU NONE 2 ITA NO. 6221/M/14 & OTHER 17 APPEALS. 5. 6106/M/14, A.Y 1995-96 DCIT 4(1), ROOM NO.640, 6 TH FLOOR, AAYKAR BHAVAN, MK RAOD, MUMBAI 400 020 SHRI SANJAY I JAIN B/9, BHANGWADI, KALBADEVI ROAD, MUMBAI 400002 PAN:AOCPJ 7611B SHRI B. SATAYANARAYANA RAJU NONE 6. 7446/M/14, A.Y 2006-07 ACIT 1(3), 564,5 TH FLR., AAYKAR BHAVAN, MK ROAD, MUMBAI 400020 M/S. THE WEST COAST PAPER MILLS LTD., 3 RD FLOOR, SHREE NIWAS HOUSE, HAZARIMAL SOMANI MARG, FORT, MUMBAI. PAN:AAACT4179N SHRI B. SATAYANARAYANA RAJU SHRI VIJAY MEHTA 7. 107/M/15, A.Y 2010-11 ACIT 14(2)(1), 432, AAYKAR BHAVAN, 4 TH FLR,MK ROAD, MUMBAI 400020 M/S. HIMEDIA LABORATORIES PVT. LTD., 23, VADHANI INDUSTRIAL ESTATE, LBS MARG, GHATKOPAR(W), MUMBAI 400086 PAN:AAACH3784P SHRI B. SATAYANARAYANA RAJU NONE 8. 3493/M/15, A.Y.,2006- 07 ACIT, CENT. CIR- 8(2), [ERSTWHILE ACIT-CC-45], 6 TH FLR., R.NO.658, AAYKAR BHAVAN, MK ROAD, MUMBAI20 MS. RESHMA J SHETTY, 2 ND FLR. SONY APTS., ST. PAUL ROAD, BANDRA(W), MUMBAI 400050 PAN:AANPS 1105K SHRI B. SATAYANARAYANA RAJU NONE 9. 4617/M/15, A.Y, 2011- 12 ITO 10(3)(1), R.NO.621,6 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI 20 M/S. INCOMET INDUSTRIES LTD., 156, MAKER CHAMBERS-III, NARIMAN POINT, MUMBAI 400021 PAN:AAACN1597Q SHRI B. SATAYANARAYANA RAJU NONE 10. 6167/M/14, A.Y.,2010- 11 DCIT(TDS)-2(1), R.NO.702,7 TH FLR., SMT.K.G.MITTAL AYURVEDIC HOSPITAL, CHARNI ROAD, MUMBAI 400002 JM FINANCIAL SERVICES PVT. LTD., 4 TH FLOOR, PALM COURT COMPLEX, LINK ROAD, MALAD(W), MUMBAI 400064 SHRI B. SATAYANARAYANA RAJU NONE 11. 6142/M/14, A.Y.2010-11 ITO 14(2)-3, EARNEST HOUSE, R.NO.306, 3 RD FLR, NARIMAN POINT, M/S.RITEX OVERSEAS, 155/6, MITTAL INDUSTRIAL ESTATE, 84/85, MV SHRI B. SATAYANARAYANA RAJU NONE 3 ITA NO. 6221/M/14 & OTHER 17 APPEALS. MUMBAI 400021 ROAD, MAROL NAKA, ANDHERI (E), MUMBAI 400059 12. 6168/M/14, A.Y 2010-11 ACIT 21(1), 6 TH FLR, C-10, PRATYAKSH KAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA(E), MUMBAI 400051 SHRI NILAY NAILESH DALAL, 5-6, VIRAM, 62, HATKESH SOCIETY, NS ROAD NO.8, JVPD SCHEME, MUMBAI 400049 PAN:AHXPD7502N SHRI B. SATAYANARAYANA RAJU NONE 13. 6207/M/14, A.Y. 2008- 09 ACIT 25(1), R.NO.202, 2 ND FLR. PRATYAKSH KAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA(E), MUMBAI 400051 M/S. DEVIDAS A. RAIMALANI, HUF A/2306, OBEROI SPRINGS, OPP. CITY MALL, NEW LINK ROAD, ANDHERI(W), MUMBAI 400053 PAN AACHD 8960N SHRI B. SATAYANARAYANA RAJU NONE 14. 2317/M/15, A.Y. 2011- 12 ITO 8(1)(2), R.NO.621-A, 6 TH FLR., AAYKAR BHAVAN, MK ROAD, MUMBAI 400 020 M/S. ROSE PRINTERS PVT. LTD., 359, A TO Z INDUSTRIAL ESTATE, GANPATRAO KADAM MARG, LOWER PAREL, MUMBAI 400013 PAN:AAACR1960P SHRI B. SATAYANARAYANA RAJU NONE 15. 168/M/15, A.Y-2009-10 ACIT 14(2)(1), 432, AAYKAR BHAVAN, MK ROAD, MUMBAI 400020 M/S. JEFFRIES INDIA PVT. LTD. OFFICE NO.42& 43, 2 NORTH AVENUE, MAKER MAXITY, BKC BANDRA(E), MUMBAI -51, PAN: AABCJ7850 SHRI B. SATAYANARAYANA RAJU NONE 16. 567/M/15, A.Y. 2010- 11 DCIT 4(2)(2), R.NO.642, 6 TH FLR., AAYKAR BHAVAN, MK RAOD, MUMBAI 400020 M/S. MILES SOFTWARE SOLUTIONS PVT. LTD., 311, BUSSA INDUSTRIAL ESTATE, NARAM PATH, OFF. S.B.MARG, LOWER PAREL (W), MUMBAI 400 013. PAN:AABCM 59 SHRI B. SATAYANARAYANA RAJU NONE 17. 149/M/15, ITO 19(1)(3), 2 ND FLOOR, MATHRU CHIRAG S. ZAVERI, 30, 6 TH FLOOR, SHRI B. SATAYANARAYANA NONE 4 ITA NO. 6221/M/14 & OTHER 17 APPEALS. A.Y-2010-11 MANDIR, TARDEO ROAD, MUMBAI 400007 BHAVESHWAR NIKETAN, AK ROAD, GOWALIA TANK, MUMBAI 400 006 PAN:AAEPZ2775P RAJU 18. 186/M/15, A.Y 2010-11 DCIT 5(1)(1), R.NO.568, 5 TH FLR., AAYKAR BHAVAN, MK ROAD, MUMBAI 400 020 M/S. ABG PORTS PVT. LTD., 5 TH FLR., BHUPATI CHAMBERS, 13, MATHEW ROAD, OPERA HOUSE, MUMBAI 400004 PAN:AAHCA 1523A SHRI B. SATAYANARAYANA RAJU NONE DATE OF HEARING : 28/12/2015 DATE OF PRONOUNCEMENT : 28/12/2015 ORDER PER G.S. PANNU, AM: THE CAPTIONED 18 APPEALS, PREFERRED BY THE REVENU E, HAVE BEEN LISTED BY THE REGISTRY BEFORE THE BENCH ON THE GROU ND THAT THEY DO NOT SURVIVE FOR CONSIDERATION IN VIEW OF THE CBDT CIRCU LAR NO.21/2015 DATED 10/12/2015. 2. THE CBDT VIDE CIRCULAR DATED 10/12/2015(SUPRA) H AS REVISED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPART MENT BEFORE THE TRIBUNAL RETROSPECTIVELY. THE TAX EFFECT IN DISPUT E IN THE CAPTIONED APPEALS IS STATED TO BE BELOW THE MONETARY LIMIT OF RS.10.00 LACS SPECIFIED IN THE CBDT CIRCULAR DATED 10/12/2015 (SU PRA). 3. IN THIS BACKGROUND, LD. DEPARTMENTAL REPRESENTAT IVE APPEARING FOR THE REVENUE WAS REQUIRED TO STATE HIS POSITION. HE HAS NOT BROUGHT OUT ANY MATERIAL TO SUGGEST THAT THE CAPTIONED APPE ALS ARE PROTECTED BY 5 ITA NO. 6221/M/14 & OTHER 17 APPEALS. ANY OF THE CIRCUMSTANCES PRESCRIBED IN PARA-8 OF TH E CIRCULAR DATED 10/12/2015 (SUPRA) AND AS A CONSEQUENCE SUCH APPEAL S ARE LIABLE TO BE TREATED AS WITHDRAWN/NOT PRESSED. THE RELEVANT POR TION OF THE CIRCULAR DATED 10/12/2015 (SUPRA) IS REPRODUCED BELOW:- 3.HENCEFORTH APPEALS/SLPS SHALL NOT BE FILED IN CAS ES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER:- SL. NO. APPEALS IN INCOME-TAX MATTERS MONETARY LIMI TS (IN RS.) 1. BEFORE APPELLATE TRIBUNAL 10,00,000 2. BEFORE HIGH COURT 20,00,000 3. BEFORE SUPREME COURT 25,00,000 .................................................. ................................................... ............................ 4. FOR THIS PURPOSE, 'TAX EFFECT' MEANS THE DIFFERE NCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE B EEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME I N RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREI NAFTER REFERRED TO AS 'DISPUTED ISSUES'). HOWEVER THE TAX WILL NOT INCLUDE ANY INTE REST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. I N 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 INCOM E, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDU CED IN THE ORDER TO BE APPEALED AGAINST. 8. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISS UES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAI LED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT: (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE ARE UNDER CHALLENGE, OR (B) WHERE BOARD'S ORDER, NOTIFICATION, INSTRUCTION OR C IRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN A SSETS/ BANK 6 ITA NO. 6221/M/14 & OTHER 17 APPEALS. ACCOUNTS. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE S HALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TA X. FILING OF APPEALS IN OTHER DIRECT TAX MATTERS SHALL CONTINUE TO BE GOVER NED BY RELEVANT PROVISIONS OF STATUTE & RULES. FURTHER, FILING OF APPEAL IN CA SES OF INCOME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUC H AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDER SECTION 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNED BY THE LIMITS SPECIFIED IN PARA 3 ABOVE AN D DECISION TO FILE APPEAL IN SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR C ASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIB UNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWAL NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. (UNDERLINED FOR EMPHASIS BY US) 4. WITHOUT GOING INTO THE MERIT OF THE ISSUES RAISE D IN THE CAPTIONED APPEALS, THEY ARE DEEMED TO BE WITHDRAWN/ NOT PRESSED AS THEIR FILING IS IN CONTRAVENTION OF THE CBDT CIRCUL AR DATED 10/12/2015(SUPRA). 5. IF ON A LATER DATE, IT IS FOUND THAT THE TAX EFF ECT IN DISPUTE IN ANY OF THE CAPTIONED APPEAL IS MORE THAN THE LIMIT PRESCRIBED IN THE CIRCULAR DATED 10/12/2015 (SUPRA) OR IT IS COVERED BY ANY OF THE EXCEPTIONS PROVIDED IN PARA 8 OF THE CIRCULAR (SUPR A), THEN, THE DEPARTMENT SHALL BE AT LIBERTY TO APPROACH THE TRIB UNAL FOR RECALL OF THE ORDER AND RE-INSTITUTION OF APPEAL FOR ADJUDICA TION ON MERITS. THE TRIBUNAL SHALL CONSIDER SUCH APPLICATIONS, IF ANY, AS PER LAW. 7 ITA NO. 6221/M/14 & OTHER 17 APPEALS. 6. IN CONCLUSION, BY APPLYING THE CBDT CIRCULAR DAT ED 10/12/2015(SUPRA), THE CAPTIONED APPEALS OF THE REV ENUE ARE DISMISSED AS WITHDRAWN/NOT PRESSED. ABOVE DECISION WAS PRONOUNCED IN THE OPEN COURT AT THE CONCLUSION OF THE HEARING ON 28/12/2015. SD/- SD/- (RAMLAL NEGI) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 28/12/2015 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// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI VM , SR. PS