ITO 4 (1)(1), MUMBAI V. AAMAL SECURITIES LTD., MUMBAI

ITA 6255/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7121 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 03-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR
• Keywords: Tax effect
• Section: 13

Judgement Text

INTHEINCOMETAX APPELLATETRIBUNAL MUMBAI BENCHAMUMBAI BEFORE SHRI C.N.PRASAD(JUDICIAL MEMBER)AND SHRI S. RIFAURRAHMAN(ACCOUNTANT MEMBER) ITANO.6255/MUM/2019 ASSESSMENT YEAR:2012-13 ITO-4(1)(1), ROOMNO. 636, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020. VS. AAMAL SECURITIESLTD., 303, RAJENDRACHAMBERS, 19 NANABHAI LANE, FORT, MUMBAI-400 001 PANNO.AADCA 4019 P APPELLANT RESPONDENT REVENUE BY : MR. BRAJENDRAKUMAR, DR ASSESSEEBY : NONE DATE OF HEARING : 17/06/2021 DATE OF PRONOUNCEMENT : 30/08/2021 ORDER PER S. RIFAURRAHMAN,A.M. THE PRESENT APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-9, MUMBAI [IN SHORT CIT(A)] FOR THE ASSESSMENT YEAR 2012-13 DATED 15.07.2019 AND ARISES OUT OF ASSESSMENT COMPLETEDU/S143(3) R.W.S.147OFTHE INCOMETAXACT,1961 (IN SHORTTHE ACT) 2. CENTRAL 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 REVENUE BEFORE THE AAMAL SECURITIES LTD. ITANO. 6255/M/2019 2 ITAT, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCINGLITIGATION. 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 CASESWHERETHETAXEFFECTDOESNOTEXCEEDTHEMONETARYLIMITOFRS.20,00,000/- .FORTHISPURCHASE,TAXEFFECTMEANSTHEDIFFERENCEBETWEENTHETAXONTHETOTAL 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 WHICHAPPEALISINTENDEDTOBEFILED.FURTHER,TAXEFFECTSHALLBETAXESINCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITYOFINTERESTISTHEISSUEUNDERDISPUTE,THE AMOUNTOFINTERESTSHALL BETHETAXEFFECT.INCASESWHERERETURNEDLOSSISREDUCEDORASSESSEDASINCOME, 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 TO BE APPEALED AGAINST. AT PARA 13 OF THE SAID CIRCULAR, IT HAS BEEN MENTIONEDTHAT: 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 LIMITFORFILING OF APPEALS BEFOREITATAT RS.50,00,000/-. 4. INTHEINSTANTAPPEAL,THETOTALTAXEFFECTISRS.39,61,885/-ASPERFORMNO. 36. THEREFORE, THE LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT THE APPEAL FILED BY THE REVENUE BE DISMISSED. AAMAL SECURITIES LTD. ITANO. 6255/M/2019 3 5. BEFORE US, THE LD. DEPARTMENTAL REPRESENTATIVE (DR) FAIRLY AGREES THAT THE TAX EFFECT HEREIN IS BELOW THE MONETARY LIMIT OF RS.50,00,000/- FIXED BY THE ABOVE CIRCULAR FOR FILING OF APPEALS BEFORE THE ITAT. HOWEVER, IT IS PLEADED BY HIM THAT IN CASE OF EXCEPTIONS TO THE ABOVE CIRCULAR, THE APPELLANT MAY BE ALLOWEDTOBRINGITTOTHENOTICEOFTHETRIBUNAL.CONSIDERINGTHESUBMISSION,WE MAKEITCLEARTHATTHEAPPELLANTSHALLBEATLIBERTYTOPOINTOUT THEEXCEPTIONSTO WHICHTHEABOVE CIRCULARMAYNOTAPPLYBY FILINGMISCELLANEOUSAPPLICATIONS. 6. INVIEWOFTHECBDTCIRCULARNO.17/2019,THISAPPEALINVOLVINGTAXEFFECT OF LESSTHAN RS.50,00,000/-ISDISMISSED. ORDER PRONOUNCEDINTHEOPENCOURTON 30/08/2021. SD/- SD/- (C.N.PRASAD) ( S. RIFAURRAHMAN ) JUDICIALMEMBER ACCOUNTANTMEMBER MUMBAI; DATED:30/08/2021 RAHUL SHARMA,SR. P.S. COPYOFTHEORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT,MUMBAI 6. GUARDFILE. BY ORDER, //TRUE COPY// (DY./ASSISTANTREGISTRAR) ITAT,MUMBAI