DCIT CIRCLE-8(3)(2), MUMBAI V. VALATION FINANCE & MARKETING P.LTD, MUMBAI

ITA 6633/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3524 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Appeal Filed On: 22-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , F BENCH UMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 6633/MUM/2018 FOR ASSESSMENT YEARS: 2014-15 DCIT-8(3)(2), ROOM NO. 615, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020. VS M/S VALATION FINANCE AND MARKETING PVT. LTD., 4 TH FLOOR, SADHANA HOUSE, 570 PANDURANG PUDHKAR MARG, WORLI, MUMBAI-400018 PAN : AABCV1310Q (APPELLANT) (RESPONDENT) APPELLANT BY : MRS. SAMATHA MULLAMUDI (SR. DR) RESPONDENT BY : SHRI SACHIN ROMANI (AR) DATE OF HEARING : 17/02/2020 DATE OF PRONOUNCEMENT : 17/02/2 020 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS APPEAL BY REVENUE UNDER SECTION 253 OF INCOME TAX ACT IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-14, [CIT(A)], MUMBAI DATED 23.07.2018 FOR ASSESSMENT YE AR 2014-15. THE LD CIT(A) WHILE PASSING THE ORDER DELETED THE DISAL LOWANCES UNDER SECTION 36(1)(III) OF RS. 1,15,67,494/- AND DISALLOWANCES O F CAUSAL LABOUR EXPENSES OF RS. 2,33,720/- . 2. AT THE OUTSET OF HEARING, THE LD. AUTHORIZED REPRES ENTATIVE (AR) OF THE ASSESSEE SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS BELOW THE MONETARY LIMIT OF RS.50,00,000/- PRESCRIB ED BY CBDT FOR ITA NO. 6633 MUM 2018-M/S VALATION FINANCE AND MARK ETING PVT. LTD. 2 FILING APPEAL BEFORE TRIBUNAL, IN ITS CIRCULAR NO. 17/2019 DATED 8 TH AUGUST 2019. THE LD. AR OF THE ASSESSEE ALSO FURNISHED THE WORKING OF TAX EFFECT OF RS. 38,28,904/-, ON THE ADDITIONS DELETED BY LD CIT(A), COPY OF WHICH WAS SUPPLIED TO LD. SR. DR FOR THE REVENUE. 3. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESENTAT IVE (DR) FOR THE REVENUE AFTER GOING THROUGH THE WORKING OF THE TAX AGREED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT OF TAX EFFECT FIXED BY CBDT IN A RECENT CIRCULAR. 4. CONSIDERING THE SUBMISSIONS OF BOTH THE LD. REPRESE NTATIVES OF THE PARTIES, WE FIND THAT TAX EFFECT INVOLVED IN THE PRESENT APP EAL IS LESS THAN THE MONETARY LIMIT OF RS. 50,00,000/- FIXED BY CBDT CIR CULAR NO. 17/2019 DATED 8 TH AUGUST 2019, THEREFORE, THE APPEAL OF REVENUE IS D ISMISSED BEING NOT MAINTAINABLE. IN THE RESULT, APPEAL OF THE REVE NUE IS DISMISSED DUE TO TAX EFFECT BEING NOT MAINTAINABLE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT O N THIS 17/02/2020. SD/- SD/- (S. RIFAUR RAHMAN) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 17.02.2020 SK COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) ITA NO. 6633 MUM 2018-M/S VALATION FINANCE AND MARK ETING PVT. LTD. 3 5. DR: ITAT BY ORDER ASSISTANT REGISTRAR ITAT MUMB AI