ITO 1(2)(3), MUMBAI V. MANGALAM DURGS & ORGANICS LTD., MUMBAI

ITA 6494/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3791 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2004-2005
• Appeal Filed On: 06-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D G PANSARI
• Keywords: Audit objection; Tax effect

Judgement Text

E IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , . BEFORE SRI MAHAVIR SINGH, JM AND SRI G MANJUNATHA , AM AAYAKR APILA SAM . / ITA NO. 6809 /MUM/ 2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2009 - 10 ) DCIT, CC - 5(1), R.NO. 1928, 19 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT, MUMBAI - 400 021 VS. HALAN INTERNATIONAL (PROP. OM HARI HALAN) 20, 4 TH FLOOR, BHATIA NIWAS, 233/235, SAMUEL STREET , MUMBAI - 03 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAAPH 1353 B / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6752/MUM/2016 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2009 - 10 ) AAYAKR APILA SAM . / ITA NO. 6753/MUM/2016 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2010 - 11) AAYAKR APILA SAM . / ITA NO. 6755/MUM/2016 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2012 - 13) ACIT, 5(3)(2) ROOM NO. 573, AAYAKAR BHAVAN, 5 TH FLOOR, MUMBAI - 20 VS. STERLING JEWELS PRIVATE LTD. UNIT NO.208 , A - Z, INDUSTRIAL ESTATE, GANPRAO KADAM, LOWER PAREL, MUMBAI - 13 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAJCS 3316 D / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE 2 AAYAKR APILA SAM . / ITA NO. 6761 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 20 11 - 12 ) DCIT - 1(1) 579, AAYAKAR BHA WAN, M.K. ROAD, MUMBAI - 20 VS. BENHAM ESTATE & I.T. PARKS LTD. 5 TH FLOOR, TIMES TOWER, KAMALA MILLS COMPOUND, LOWER PAREL, MUMBAI - 13 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAACB 2190 F / APPELLAN T BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6802 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 201 3 - 14 ) ITO (IT) 3(3) (1) ROOM NO. 1631, 16 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT, MUMBAI - 400 021 VS. MRS. ADITI BHARAT PARULEKAR 163D, HARIHAR NIWAS, DR. AMBEDKAR ROAD, DADAR, MUMBAI - 400 014 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. BGKPP 2934 H / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6806 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2013 - 14 ) DCIT, CC - 5(4), R.NO. 1927, 19 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT, MUMBAI - 400 021 VS. WADHWAN RETAIL PVT. LTD. GROUND FLOOR, MADHAVA BUILDING, BANDRA KURLA COMPLEX, ANDHERI GHATKOPAR LINK ROAD, B A NDRA (E), MUMBAI - 400 051 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAACW 6147 R 3 / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 7476 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2013 - 14 ) DCIT - CC - 1(4), ROOM NO. 902, PRATISTHA BHAVAN, 9 TH FLOOR, OLD CGO BUILDING ANNEXE, MUMBAI - 20 VS. BD & P HOTELS INDIA P. LTD. DB H OUSE, YASHODHAM, GEN. A.K. VAIDYA MARG, GOREGAON (E), MUMBAI - 400 063 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AABCB 4615 J / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT B Y : NONE AAYAKR APILA SAM . / ITA NO. 6453 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 201 1 - 12 ) ACIT - 3(1)(2) ROOM NO. 607, 6 TH FLOOR, AAYAKAR BHAVAN, MUMBAI - 20 VS. CORAL INDIA FINANCE & HOUSING LTD. 4 TH FLOOR, DALAMAL HOUSE, NARIMAN POINT, MUMBAI - 21 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAACC 4449 C / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : SHRI KUMAR KALE , A R 4 AAYAKR APILA SAM . / ITA NO. 6494 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2004 - 05 ) ITO - 1( 2)(3) 527, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20 VS. MANGALAUM DRUGS & ORGANICS PVT. LTD. RUPAM BUILD. 3 RD FLOOR, P.D. MELLO ROAD NEAR GPO MUMBAI - 400 0 01 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAACM 7880 P / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6563 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2013 - 14 ) AAYAKR APILA SAM . / ITA NO. 6565/MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMEN T YEAR 2014 - 15) ACIT, 23(1) ROOM NO. 113, MATRU MANDIR , 1 ST FLOOR, TARDEO RD, MUMBAI - 400 007 VS. AURA MEDICAL TECHNOLOGIES B - 406, DEERAJ SNEH, 30 TH R OAD, PALI NAKA, BANDRA (WEST), MUMBAI - 400 050 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAOFA 6499 F / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6572 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2013 - 14 ) ACIT - 18(2), 30 2, 3 RD FLOOR, E ARNEST HOUSE, NCPA MARG, MUMBAI - 400 021 VS. M/S MUNOT ORNAMENTS ANNEX, SHOP NO. A - 14, GLITZ MALL, 99, VITHALWADI, CHAMPAGALI CROSS LANE, KALBADEVI, MUMBAI - 02 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) 5 . / PAN NO. AASFM 6304 R / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6576 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2012 - 13) ACIT - 16(2) ROOM NO. 479, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, M UMBAI - 20 VS. SHRI S. GANESH 10, 2 ND FLOOR, FAIR FIELD, J.S. MALANI ROAD, CHURCHGATE, MUMABI - 20 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAGPS 5047 M / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6594 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2012 - 13) ACIT, 14(2)(2) 461, AAYAKAR BHAVAN, 4 TH FLOOR, M.K. MARG, MUMBAI - 20 VS. MILESTONE CITY COMPLEX PVT. LTD. 602, HALLMARK BUSINESS P ALAZA, SANT DYANESHWAR MARG, OPP. GURUNANAK HOSPITAL, BANDRA (EAST), MUMBAI - 51 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AAFCM 4859 H / APPELLANT BY : SHRI DG PANSARI, DR / R ESPONDENT BY : NONE 6 AAYAKR APILA SAM . / ITA NO. 6630 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2009 - 10 ) ITO, 2(2)(3) ROOM NO. 542, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, CHURCHGATE, MUMBAI - 20 VS. NICCO SECURITIES PVT. LTD. 96 / 98, 3 RD FLOOR, DHANJI S TREET, MUMBA I DEVI ROAD, MUMBAI - 02 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AABCN 1737 D / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6786 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2014 - 15 ) DCIT - CIRCLE 4(1)(2) ROOM NO . 640, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20 VS. CREATIVE LABELS PVT. LTD ROOM NO. 305, SHARAF MANSION, 3 RD FLOOR, PRINCESS STREET, KALBADEVI, MUMBAI - 400 002 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AACCC 61 50 G / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6787 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2013 - 14 ) ITO, WARD 16(2)(5) ROM NO. 443, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20 VS. KETAN NEMCHAND CHEDDA C - 4, BIG SPALSH, SECTOR NO. 17, VASHI, MUMBAI - 705 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AFIPC 3658 K 7 / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6890 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2012 - 13) ITO - 13(3)(1) ROOM NO. 227, 2 ND FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20 VS. RADHE KRISHNA AGENCIES PVT. LTD. A - 201, RAGHAV V ASANT VALLY, NEAR DINDOSHI BUS DEPOT, FILM CITY ROAD, MALAD EAST, MUMBAI - 400 097 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AADCR 4869 A / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : NONE AAYAKR APILA SAM . / ITA NO. 6923 /MUM/2017 ( INAQA - ARNA BAYA - / ASSESSMENT YEAR 2014 - 15 ) DCIT, CIR. 6(3)(1) R.NO. 506, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20 VS. INDIA FASHIONS LTD. 369, A - 2, SHAH AND NAHAR INDUSTRIAL ESTAT E, LOWER PAREL, MUMBAI - 400 013 ( APILAAQAI - / APPELLANT) .. ( P`%YAQAAI - / RESPONDENT) . / PAN NO. AABCI 4292 A / APPELLANT BY : SHRI DG PANSARI, DR / RESPONDENT BY : SHRI MAHESH RAJORA , A R / DATE OF HEARING: 10 - 08 - 2018 / DATE OF PRONOUNCEMENT : 10 - 08 - 2018 8 AADOSA / O R D E R PER BENCH : ALL THESE APPEALS PERTAINS TO REVENUE AND WHEN CALLED FOR HEARING AND POINTED OUT TO THE LEARNED SR. DR THAT THE TAX EFFECT IN THESE APPEALS IS BELOW THE PRESCRIBED LIMIT AS PRESCRIBED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR F.NO. 279/MISC. 142/2007 - ITJ (PT) DATED 11.07.2018, WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR F ILING OF DEPARTMENTAL APPEAL BEFORE TRIBUNAL HAS BEEN REVISED AND FIXED AT 20 LACS FOR FILING OF THE DEPARTMENTAL APPEAL , T HE LEARNED SR. DR COULD NOT CONTROVERT THE FACT THAT THE TAX EFFECT IN ALL THESE APPEALS OF REVENUE IS BELOW THE PRESCRIBED LIMIT A S PRESCRIBED BY CBDT CIRCULAR DATED 11.07.2018 . 2. WE HAVE GONE THROUGH THE CIRCULAR AND NOTICED THAT THIS CIRCULAR WILL APPLY TO PENDING APPEALS ALSO & WE ARE REFERRING TO PARA 13 OF THE CIRCULAR FOR THIS PROPOSITION , WHICH READS AS UNDER: - 13. THIS CIRCU LAR WILL APPLY TO SLPS/APPEALS/ CROSS OBJECTIONS/ 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 A BOVE MAY BE WITHDRAWN/ NOT PRESSED . 3. IN VIEW OF THE ABOVE, WE ARE OF THE VIEW THAT THE REVENUES APPEAL S ARE FULLY COVERED BY CBDT CIRCULAR NO. 3 OF 20 1 8 AND THERE IS NO EXCEPTION BROUGHT OUT BY THE REVENUE THAT TH E S E APPEAL S FALLS UNDER ANY OF THE EXCEPTI ON AS PROVIDED IN PARA 10 WHICH READS AS UNDER: - 9 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISSUES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO T AX EFFECT: (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROVISIONS OF AN ACT OR RULE IS UNDER CHALLENGE, OR (B) WHERE BOARD'S ORDER, NOTIFICATION, INSTRUCTION OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION M THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN ASSETS/ BANK ACCOUNTS. 4. WHEN THIS WAS CONFRONTED TO THE LEARNED SR. DEPARTMENTAL REPRESENTATIVE SHRI DG PANSARI , HE COULD NOT POINT OUT THAT TH ESE APPEA LS FALLS UNDER ANY OF THE EXCEPTION AS PROVIDED IN CIRCULAR NO. 3 OF 2018 BUT HE ONLY REQUESTED THAT A LIBERTY BE GIVEN TO REVENUE FOR RECALLING OF THE ORDER IN CASE THE AO FOUN D THAT THESE CASE S FALLS UNDER ANY OF THE EXCEPTIONS AS PROVIDED IN THIS CIRCUL AR . ADMITTEDLY, THE TAX EFFECT IN THESE APPEALS OF REVENUE IS MUCH BELOW THE PRESCRIBED LIMIT OF FILING APPEAL BEFORE THE TRIBUNAL I.E. 20 LACS AS PER CBDT CIRCULAR NO. 3 OF 20 1 8. IN VIEW OF THE ABOVE, TH ESE APPEAL S OF REVENUE ARE DISMISSED AS WITHDRAWN I N VIEW OF CIRCULAR NO 3 OF 201 8. HOWEVER, THE REVENUE IS AT LIBERTY TO GET THE ORDER RECALLED IN CASE ANY OF THE ABOVE APPEAL S FALLS UNDER THE EXCEPTIONS AS PROVIDED IN ABOVE CBDT CIRCULAR. 10 5. IN THE RESULT, ALL TH ESE APPEALS OF REVENUE ARE DISMISSED AS WI THDRAWN . ORDER PRONOUNCED IN THE OPEN COURT ON 10 - 08 - 2018 . AADOSA KI GAAO YANAA KULAO MAO IDNAMK 10 - 08 - 2018 KAO KI GA[ - . SD/ - SD/ - ( . / G MANJUNATHA) ( / MAHAVIR SINGH) ( / ACCOUNTANT MEMBER ) ( / JUDICIAL MEMB ER ) , / MUMBAI, DATED: 10 - 08 - 2018 , . / SUDIP SARKAR, SR.PS / 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// / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI