DCIT-11(2)(2), MUMBAI V. M/S.SYNDROME TECHNOLOGIES PRIVATE LIMITED, MUMBAI

ITA 6257/MUM/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7592 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 16-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UDAY BHASKAR JAKKE
• Keywords: Tax effect
• Section: 143(3); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G MUMBAI BEFORE SHRI C.N. PRASAD (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 6257/MUM/2017 ASSESSMENT YEAR: 2013 - 14 DCIT, CIRCLE - 11(2)(2), 421, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020. VS. M/S SYNDROME TECHNOLOGIES PVT. LTD., UNIT NO. 2B, 16 TH FLOOR, TIME SQUARE, ANDHERI KURLA ROAD, OPP. MITTAL ESTATE, MUMBAI - 400059. PAN NO. AAOCS2326L APPELLANT RESPONDENT REVENUE BY : MR. UDAYBHASKARJAKKE, DR ASSESSEE BY : MR. MANI JAIN, AR DATE OF HEARING : 27/01/2020 DATE OF PRONOUNCEMENT : 28/01/2020 ORDER PER N.K. PRADHAN, A.M. THIS IS AN APPEAL FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2013 - 14. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - 18, MUMBAI [IN SHORT CIT(A)] AND ARISES OUT OF THE ASSESSMENT COMPLETED U/ S 143(3) OF THE INCOME TAX ACT 1961, (THE 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 M/S SYNDROME TECHNOLOGIES PVT. LTD. ITA NO. 6257/MUM/2017 2 ITAT, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCI NG 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 PUR CHASE, TAX EFFECT MEANS THE 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 INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISP UTE, 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 DELET ED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. AT PARA 13 OF THE SAID 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 RETR OSPECTIVELY 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 FILING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . M/S SYNDROME TECHNOLOGIES PVT. LTD. ITA NO. 6257/MUM/2017 3 5. IN THE INSTANT APPEAL FILED, THE TAX EFFECT ON THE AMOUNT IN DISPUTE , AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, IS RS.48,66,750/ - . THEREFORE, IT IS STATED BY HIM THAT THE APPEAL FILED BY THE REVENUE BE DISMISSED. 6. 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. HO WEVER, IT IS PLEADED BY HIM THAT IN CASE OF EXCEPTIONS TO THE ABOVE CIRCULAR, THE APPELLANT MAY BE ALLOWED TO BRING IT TO THE NOTICE OF THE TRIBUNAL. CONSIDERING THE SUBMISSION, WE MAKE IT CLEAR THAT THE APPELLANT SHALL BE AT LIBERTY TO POINT OUT THE EXCEP TIONS TO WHICH THE ABOVE CIRCULAR MAY NOT APPLY BY FILING MISCELLANEOUS APPLICATION. 7. IN VIEW OF THE CBDT CIRCULAR NO. 17/2019, THIS APPEAL INVOLVING TAX EFFECT OF LESS THAN RS.50,00,000/ - IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/01/2020. SD/ - SD/ - ( C.N. PRASAD ) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 28/01/2020 RAHUL SHARMA, SR. P.S. M/S SYNDROME TECHNOLOGIES PVT. LTD. ITA NO. 6257/MUM/2017 4 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