I.T.O. (IT) - 3(3)(1), Mumbai V. MR. DHANANJAY MADHUKAR NAIK, Mumbai

ITA 667/MUM/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3255 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2014-2015
• Appeal Filed On: 02-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S H USMANI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 667/MUM/2018 ASSESSMENT YEAR: 2014 - 15 ITO (IT) - 3(3)(1), ROOM NO. 1631, 16 TH FLOOR, AIR INDIA BUILDING, NARIMAN POINT, MUMBAI - 400021. VS. MR. DHANANJAY MADHUKAR NAIK, FLAT 306, MEGHDOOT, SAHAJI RAJE MARG, KOLDONGRI, VILE PARLE, MUMBAI - 400057. PAN NO. ALRPN7498M APPELLANT RESPONDENT REVENUE BY : MR. S.H. USMANI , SR. DR ASSESSEE BY : MR. SASHANK DUNDU , AR DATE OF HEARING : 07 /0 2 /201 9 DATE OF PRONOUNCEMENT : 07/02/2019 ORDER PER N.K. PRADHAN, AM THE CENTRAL BOARD OF DIRECT TAXES (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 PURCHASE, TAX EFFECT MEANS TH E 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 MR. DHANANJAY MADHUKAR ITA NO. 667/MUM/2018 2 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 DISPUTE, 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 DELETED OR REDUCED IN THE ORDER T O BE APPEALED AGAINST. 2. BEFORE US, THE LD. COUNSEL OF THE ASSESSEE FILES A WORKING SHEET STATING THAT THE TAX ON DISPUTED ADDITION COMES TO RS.15,15,072/ - . THE LD. DR FAIRLY AGREES THAT THE TAX EFFECT IN THE INSTANT CASE DOES NOT EXCEED THE MONETARY LIM IT OF RS.20,00,000/ - . 3. AT PARA 13 OF THE ABOVE 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 RETROSPECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 07/02 /2019. SD/ - SD/ - (SAKTIJIT DEY) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MR. DHANANJAY MADHUKAR ITA NO. 667/MUM/2018 3 MUMBAI ; DATED: 07/02/2019 RAHUL SHARMA, SR. P.S. 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// (SR. PRIVATE SECRETARY) ITAT, MUMBAI