DCIT 10(3)(2), MUMBAI V. PAL FASHIONS PVT. LTD., MUMBAI

ITA 6342/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2140 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 05-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUMAR PADMAPANI BORA
• Keywords: Tax effect
• Section: 20

Judgement Text

1 ITA 6342/MUM/2018 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI BEFORE SHRI C.N.PRASAD (JUDICIAL MEMBER) AND SHRI G MANJUNATHA (ACCOUNTANT MEMBER) I.T.A NO. 6342/MUM/2018 (ASSESSMENT YEAR: 2015-16) DCIT-10(3)(2) ROOM NO. 509, 5 TH FLOOR M.K.ROAD, AAYKAR BHAWAN MUMBAI-400 020 VS M/S PAL FASHIONS PRIVATE LIMITED, NO. 104, NEW TEJPAL INDUSTRIAL ESTATE, ANDHERI KURLA ROAD SAKINAKA, ANDHERI(E) MUMBAI-400 072 PAN: AA BCP7263L APPELLANT RESPONDENT APPELLANT BY SHRI KUMAR PADMAPANI BORA-(DR) RESPONDENT BY SHRI. HARIOM TULSIYAN, (AR) DATE OF HEARING 20-11-2019 DATE OF PRONOUNCEMENT 20-11-2019 O R D E R PER G MANJUNATHA, AM : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST ORDER OF THE CIT(A)- 17, MUMBAI DATED 10/08/2018 AND IT PERTAINS TO AY 2015-16. 2. WE HAVE HEARD BOTH THE PARTIES AND PERUSED MATER IALS AVAILABLE ON RECORD. DURING COURSE OF HEARING, THE LD. AR FOR TH E ASSESSEE SUBMITTED THAT TAX EFFECT INVOLVED IN THIS APPEAL FILED BY TH E REVENUE IS LESS THAN RS. 50 LACS AND IN VIEW OF LATEST CBDT CIRCULAR NO. 3/2 018 DATED 11-7-2018, 2 ITA 6342/MUM/2018 AND ALSO MODIFIED CIRCULAR NO. 17/2019 DATED 08/08/ 2019, APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND NEEDS TO BE DIS MISSED. THE LD. DR, SUBMITTED THAT NO DOUBT TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE IS LESS THAN RS. 50 LACS AND IT IS COVERED BY CBDT CIRCULAR NO. 17/2019 DATED 08/08/2019, HOWEVER IT APPEARS THAT ISSUE INV OLVED IN THIS APPEAL IS COVERED BY EXCEPTION AS PROVIDED UNDER CLAUSE (E ) OF SUBSEQUENT CIRCULAR AND THEREFORE, IF REQUIRED THE REVENUE SHA LL BE ALLOWED TO FILE MISCELLANEOUS APPLICATION TO RELCALL THE ORDER. WE , FIND THAT, THE CBDT, RECENTLY HAD ISSUED A CIRCULAR NO. 3/2018 DATED 11- 7-2018, SUPERSEDING ITS EARLIER CIRCULAR NO. 21/2015 AND ENHANCED MONET ARY LIMIT FOR FILING APPEAL BEFORE VARIOUS APPELLATE AUTHORITIES AND ACC ORDINGLY, ENHANCED MONETARY LIMIT TO RS. 20,00,000/- FOR FILING APPEAL BEFORE THE TRIBUNAL. FURTHER, THE BOARD HAS ISSUED ONE MORE CIRCULAR VID E CIRUCLAR NO.17/2019 DATED 08/08/2019 AND ENHANCED MONETARY LIMIT FOR FI LING APPEAL BEFORE APPELLATE TRIBUNAL TO RS. 50,00,000/-. FURTHER, IN THE SAID CIRCULAR, THE CBDT HAD INSTRUCTED ITS OFFICERS TO FILE APPLICATI ON FOR WITHDRAWAL OF APPEAL ALREADY FILED OR NOT TO PURSUE PENDING APPEA LS. WE, THEREFORE, BY TAKING INTO ACCOUNT THE CBDT CIRCULAR NO. 3/2018 DA TED 11-7-2018 AND CIRCULAR NO.17/2019 DATED 08/08/2019 AND ALSO CONSI DERING THE FACT THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS T HAN THE AMOUNT OF MONETARY LIMIT FIXED BY THE CBDT FOR NOT FILING APP EAL, DISMISSED APPEAL 3 ITA 6342/MUM/2018 FILED BY THE REVENUE AS NOT MAINTAINABLE. WE, FURTH ER NOTED THAT THE CO- ORDINATE BENCH OF ITAT, AHMEDABAD A BENCH IN ITA. NO. 1398/AHD/2004, VIDE ORDER DATED 14/08/2019 HAS PASS ED DETAILED ORDER CONSIDERING NEW CIRCULAR ISSUED BY THE CBDT AND HEL D THAT EXCEPT AMENDMENT TO PARA 3 OF THE CIRCULAR NO.3/2018 DATED 11/07/2018, ALL OTHER PROVISIONS OF THE CIRCULAR NO.03/2018 (SUPRA) HAVE REMAIN INTACT, THEREFORE, THIS CIRCULAR IS APPLICABLE EVEN FOR PEN DING APPEALS AND ACCORDINGLY, REJECTED THE ARGUMENTS OF THE REVENUE THAT THE EFFECT OF THE CIRCULAR SHALL COME INTO FORCE FROM THE DATE OF ISS UE OF THIS CIRCULAR. THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THIS CASE AND ALSO TAKEN NOTE OF CIRCULARS ISSUED BY THE CBDT INCLUDIN G CIRCULAR NO. 17/2019 DATED 08/08/2019, AND ALSO BY FOLLOWING THE DECISION OF CO- ORDINATE BENCH, WE DISMISSED APPEAL FILED BY THE RE VENUE AS NOT MAINTAINABLE. HOWEVER, WE KEEP OPEN OPTION TO THE R EVENUE TO FILE A MISCELLANEOUS APPLICATION, IF NECESSARY, IN CASE TH E ISSUES INVOLVED IN THE PRESENT APPEAL COMES WITHIN 3 EXCEPTIONS AS PRO VIDED IN PARA 10 OF SAID CIRCULAR AND CLAUSE (E) OF SUBSEQUENT CIRCULAR . 3. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH NOVEMBER, 2019 4 ITA 6342/MUM/2018 SD/- SD/- (C.N.PRASAD) (G MANJUNATHA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DT : 20-11-2019 THIRUMALESH, SR.PS COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR /TRUE COPY/ BY ORDER SR.PS, ITAT, MUMBAI