DCIT CIR 2, KALYAN V. VINOD NARAINDAS KISHNANI, ULHASNAGAR

ITA 6226/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5584 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 21-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP LD
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

ITA NOS.6226 & 6228/MUM/2016 VINOD NARAINDAS KISHNANI ASSESSMENT YEARS-2009-10 & 2012-13 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.6226/MUM/2016 ( / ASSESSMENT YEAR: 2012-13) DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-2 KALYAN, 2 ND FLOOR, MOHAN PLAZA KHADAKPADA, WAYALE NAGAR KALYAN(W), KALYAN-421 301 / VS. VINOD NARAINDAS KISHNANI SHOP NO.2, RADHA COMPLEX NEAR DASSERA MAIDAN ULHASNAGAR-421 002 ! ./ ./PAN/GIR NO. AFQPK-4240-K ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) & ./I.T.A. NO.6228/MUM/2016 ( / ASSESSMENT YEAR: 2009-10) DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-2 KALYAN, 2 ND FLOOR, MOHAN PLAZA KHADAKPADA, WAYALE NAGAR KALYAN(W), KALYAN-421 301 / VS. VINOD NARAINDAS KISHNANI SHOP NO.2, RADHA COMPLEX NEAR DASSERA MAIDAN ULHASNAGAR-421 002 ! ./ ./PAN/GIR NO. AFQPK-4240-K ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) A SSESSEE BY : NONE RE VENUE BY : POOJA SWAROOP , LD. SR. DR / DATE OF HEARING : 25/07/2018 / DATE OF PRONOUNCEMENT : 31/07/2018 ITA NOS.6226 & 6228/MUM/2016 VINOD NARAINDAS KISHNANI ASSESSMENT YEARS-2009-10 & 2012-13 2 / O R D E R PER BENCH 1. AFORESAID APPEALS BY REVENUE FOR ASSESSMENT YEAR S [AY] 2009-10 & 2012-13 CONTEST SEPARATE ORDERS OF LD. FIRST APPE LLATE AUTHORITY. NONE HAS APPEARED FOR ASSESSEE AND THEREFORE, LEFT WITH NO OPTION, WE PROCEED TO DISPOSE-OFF THE APPEALS ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING LD. DEPARTMENTAL REPRESENT ATIVE. 2. FOR AY 2009-10, THE REVENUE IS AGAINST THE ORDER OF LD.CIT(A) IN DELETING THE ADDITIONS OF RS.34.13 LACS ON ACCOUNT OF SALES PROMOTION EXPENSES AS MADE BY LD. AO U/S. 143(3) ON 27/06/201 4. 3. FOR AY 2012-13, THE REVENUE IS AGAINST THE ORDER OF LD.CIT(A) IN DELETING THE ADDITIONS OF RS.32.76 LACS ON ACCOUNT OF SALES PROMOTION EXPENSES AS MADE BY LD. AO U/S. 143(3) ON 31/03/201 5. 4. AT THE OUTSET, IT IS NOTED THAT TAX EFFECT OF TH E QUANTUM ADDITIONS AS CONTESTED BY THE REVENUE IN EACH YEAR IS LESS THAN PRESCRIBED LIMIT OF RS.20 LACS AND THE SAME IS COVERED BY RECENTLY ISSU ED LOW TAX EFFECT CIRCULAR NO.03/2018 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THE LD. DR, MS. POOJA SWAROOP HAS CONTROVERTED THE SAME BY SUBMITTING THAT NECESSARY INSTRUCTIONS / CE RTIFICATE, IN THIS REGARD, WOULD BE REQUIRED FROM HIGHER AUTHORITIES. 5. WE HAVE GONE THROUGH THE CIRCULAR AND FIND THAT THE TAX EFFECT OF QUANTUM IN DISPUTE IS BELOW PRESCRIBED LIMIT OF RS. 20 LACS AND THE ASSESSEE STOOD BENEFITTED BY THE ABOVE CIRCULAR ISS UED BY CBDT WHEREIN THE MINIMUM MONETARY LIMIT FOR FILING THE A PPEALS BEFORE VARIOUS APPELLATE AUTHORITIES HAVE BEEN FIXED AS UNDER:- ITA NOS.6226 & 6228/MUM/2016 VINOD NARAINDAS KISHNANI ASSESSMENT YEARS-2009-10 & 2012-13 3 S. NO. APPEALS/ SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 20.00,000 2 BEFORE HIGH COURT 50.00,000 3 BEFORE SUPREME COURT 1,00.00,000 THE AFORESAID LIMITS, AS PER PARA 13 OF THE CIRCULAR APPLIES TO PENDING APPEALS ALSO. IN VIEW OF THE ADMITTED POSITION, WE DISMISS THE REVENUES APPEAL. 6. SO FAR AS THE CONTENTIONS RAISED BY LD. DR IS CO NCERNED, WE FIND THAT AFORESAID CIRCULAR DOES NOT ENVISAGE OBTAINING OF ANY CERTIFICATE FROM ANY AUTHORITIES, IN ANY MANNER. NEVERTHELESS, THE R EVENUE IS FREE TO MOVE APPROPRIATE APPLICATION TO RECALL THIS ORDER, IF AT A LATER STAGE, IT IS FOUND THAT THE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN THE AFORESAID CIRCULAR. 7. RESULTANTLY, BOTH THE APPEALS FILED BY THE REVEN UE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2018 SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 31.07.2018 SR.PS:-THIRUMALESH ITA NOS.6226 & 6228/MUM/2016 VINOD NARAINDAS KISHNANI ASSESSMENT YEARS-2009-10 & 2012-13 4 ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. + ,$ - , - , / DR, ITAT, MUMBAI 6. , ./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI