ASST CIT 15(1)(2), MUMBAI V. GALAXY SURFACTANTS LTD, NAVI MUMBAI

ITA 6427/MUM/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5818 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2013-2014
• Appeal Filed On: 01-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN KUMAR SINGH
• Assessee Lawyers: P M JAIN
• Keywords: Tax effect; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES G, MUMBAI BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER & SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.6427/MUM/2017 ASSESSMENT YEAR: 2013-14 ACIT-15(1)(2) ROOM NO. 483A, 4 TH FLOOR AAYKAR BHAVAN MUMBAI-400 020 VS. GALAXY SURFACTANTS LTD. C-49/2, TTC INDUSTRIAL AREA PAWANE, NAVI MUMBAI-400 703 PAN AACG1539P (REVENUE) (ASSESSEE) REVENUE BY : SHRI ARUN KUMAR SINGH ASSESSEE BY : SHRI P.M.JAIN DATE OF HEARING :09.04.2019 DATE OF PRONOUNCEMENT : 12 .04.2019 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER 1. THE REVENUE BY WAY OF THIS APPEAL IS CHALLENGING THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-56 HEREINAFTER CALLED [CIT(A)], MUMBAI, IN APPEAL NO.CIT(A)-56/IT O(IT)- 15(1)(2)/2016-17/299-G DATED 22/08/2017. THE ASSESS MENT FOR IMPUGNED AY WAS FRAMED BY LD. ASSISTANT COMMISSIONE R OF INCOME TAX-15(1)(2),MUMBAI [AO] U/S 143(3) OF THE I NCOME TAX 2 IT A NO.6427/MUM/2017 ACT,1961 ON 27/01/2017.THE REVENUE HAS RAISED THE F OLLOWING GROUNDS IN ITS APPEAL. 1. CIT(A) HAS ERRED IN GIVING DIRECTION TO RESTRICT GU ARANTEE COMMISSION @0.7%, IN VIEW OF THE DECISION OF M/S. EVEREST KENTO CYLINDER LTD., W ITHOUT APPRECIATING THE FACTS THAT THE THOUGH THE RATE OF GUARANTEE COMMISSION DEFERS FROM CASE TO CASE AS PER THE INDIVIDUAL CREDIT RATING, RISK FACTOR AND OTHER FACTORS AFFECT ING RISK INVOLVED IN PROVIDING GURANTEE. 2. THE APPELLANT PRAYS THAT THE ORDER OF LD. CIT(A), ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTER ANY GROUNDS OR ADD NEW GROUND, WHICH MAY BE NECESSARY. 2. AT THE OUTSET THE LD. AR POINTED OUT THAT THE TAX E FFECT INVOLVED IN THE REVENUES APPEAL IS BELOW RS.20 LAC S AND THEREFORE THE APPEAL IS NOT MAINTAINABLE IN VIEW OF THE CIRCULAR NO.03/2018 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT] AND THEREFORE, THE SAME MAY KINDLY BE DISMISSED. THE LD. DEPARTMENTAL REPRESENTATIVE (LD. DR IN SHO RT) ON THE OTHER HAND APPEARED TO BE FAIRLY AGREED TO THE CONT ENTIONS OF THE LD. AR THAT THE TAX EFFECT IS BELOW RS. 20 LACS AND IS COVERED BY THE CIRCULAR REFERRED TO BY THE LD. AR. 3. AFTER HEARING BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD, WE OBSERVE THAT THE TAX EFFEC T INVOLVED IS BELOW RS. 20 LACS AND IN TERMS OF CIRCULAR NO.03/20 18 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. , AND 3 IT A NO.6427/MUM/2017 THE SAID APPEAL IS NOT MAINTAINABLE AND IS LIABLE TO DISMISSED. ACCORDINGLY THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 12 TH APRIL,2019. SD/- SD/- (MAHAVIR SINGH) (RAJESH KUMAR) JUDICIAL MEMBER ACCO UNTANT MEMBER MUMBAI, DATED :12 TH APRIL,2019 * THIRUMALESH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. THE CIT 5. THE DR, B BENCH, ITAT, MUMBAI BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, MUMBAI