ASSISTANT COMMISSIONER OF INCOME TAX 3(1)(2), MUMBAI V. EMERGING STAR INVESTMENT PRIVATE LIMITED, MUMBAI

ITA 6835/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2471 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 30-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAURYA PRATAPLD
• Assessee Lawyers: PARESH SHAPARIA LD
• Keywords: Rectification of order; Tax effect
• Section: 143(3); 68; 154

Judgement Text

ITA NO.6835/MUM//2018 M/S EMERGING STAR INVESTMENT PRIVATE LIMITED ASSESSMENT YEAR :2013-14 1 IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI . . , , BEFORE HONBLE SHRI C.N. PRASAD, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.6835/MUM/2018 ( / ASSESSMENT YEAR:2013-14) A CIT - 3(1)(2) ROOM NO.607, 6 TH FLOOR AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 020. / VS. M/S. EMERGING STAR INVESTMENT PVT. LTD. 1108, DALAMAL TOWER, FREE PRESS JOURNAL MARG NARIMAN POINT, MUMBAI-400 021. !' ./ ./PAN/GIR NO. AABCE-7107-L ( '$ /APPELLANT ) : ( %'$ / RESPONDENT ) ASSESSEE BY : SHRI PARESH SHAPARIA-LD. AR REVENUE BY : SHRI MAURYA PRATAP-LD. DR / DATE OF HEARING : 04/12/2019 / DATE OF PRONOUNCEMENT : 04/12/2019 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2013-14 CONTEST THE ORDER OF LD. COMMIS SIONER OF INCOME- TAX (APPEALS)-8 MUMBAI, [IN SHORT REFERRED TO AS C IT(A)], APPEAL NO. CIT(A)-8/IT-52/17-18 DATED 17/09/2018 ON CERTAIN GR OUNDS OF APPEAL. 2. THE LD. AUTHORIZED REPRESENTATIVE, AT THE OUTSET , MADE THREE-FOLD SUBMISSIONS I.E. (I) THE APPEAL IS NOT MAINTAINABLE IN TERMS OF LOW TAX ITA NO.6835/MUM//2018 M/S EMERGING STAR INVESTMENT PRIVATE LIMITED ASSESSMENT YEAR :2013-14 2 EFFECT CIRCULAR NO. 23 OF 2019 DATED 06/09/2019 ISS UED BY CBDT ; (II) THE QUANTUM ADDITIONS AGAINST WHICH RECTIFICATION ORDER U/S 154 WAS PASSED BY LD.AO HAS ALREADY BEEN DELETED BY THE TRIBUNAL ; (III) THE AMENDMENT TO SECTION 115BBE DENYING SET-OFF OF LOSSES WOULD A PPLY ONLY WITH EFFECT FROM 01/04/2017. THE LD. DR RELIED UPON THE ORDER O F LD.AO. 3. UPON CAREFUL CONSIDERATION, IT EMERGES THAT THE ASSESSEE WAS SADDLED WITH ADDITIONS OF RS.656 LACS U/S 68 IN AN ASSESSMENT FRAMED U/S 143(3) ON 14/03/2016. WHILE FRAMING THE ASSESSM ENT, SET-OFF OF LOSSES OF RS.45.80 LACS WAS ALLOWED TO THE ASSESSEE . THE LEARNED FIRST APPELLATE AUTHORITY DELETED THE QUANTUM ADDITIONS V IDE ORDER DATED 04/09/2017. UPON FURTHER APPEAL BY REVENUE, THE TRI BUNAL CONFIRMED THE ORDER OF FIRST APPELLATE AUTHORITY VIDE ITA NO. 730 1/MUM/2017 ORDER DATED 04/09/2019. 4. IN THE MEANTIME, LD. AO RECTIFIED QUANTUM ASSESS MENT ORDER U/S 154 VIDE ORDER DATED 31/05/2016 BY WITHDRAWING SET- OFF OF BUSINESS LOSSES OF RS.39.01 LACS AS ALLOWED IN ORIGINAL ASSE SSMENT ORDER, INVOKING THE PROVISIONS OF SECTION 115BBE AS AMENDE D BY FINANCE ACT, 2016 WITH EFFECT FROM 01/04/2017. AGGRIEVED, THE AS SESSEE ASSAILED THIS ORDER PASSED U/S 154 BEFORE LEARNED CIT(A) VIDE IMP UGNED ORDER DATED 17/09/2018 WHO ALLOWED THE APPEAL IN VIEW OF THE FA CT THAT QUANTUM ADDITIONS WERE ALREADY DELETED BY ITS PREDECESSOR. AGGRIEVED, THE REVENUE IS UNDER FURTHER APPEAL BEFORE US. 5. AFTER GOING THROUGH THE FACTS AS ENUMERATED BY U S IN THE PRECEDING PARAGRAPHS, IT WOULD EMERGE THAT THE APPEAL, AT THE THRESHOLD ITSELF, WOULD NOT BE MAINTAINABLE IN TERMS OF CBDT CIRCULAR NO. 23 OF 2019 DATED 06/09/2019. WE FIND THAT THE TAX EFFECT OF TH E ISSUES BEING ITA NO.6835/MUM//2018 M/S EMERGING STAR INVESTMENT PRIVATE LIMITED ASSESSMENT YEAR :2013-14 3 CONTESTED BY THE REVENUE IS LESS THAN PRESCRIBED LI MIT OF RS.50 LACS AND THE SAME IS COVERED BY RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.17/2019 DATED 08/08/2019 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THIS RECENT CIRCULAR FURTHER ENHANCES THE MONETARY LIMIT FIXED IN EARLIER CIRCULAR NO.3 OF 2018 DATED 11/07/2018 ISSU ED BY CBDT AS AMENDED ON 20/08/2018. THEREFORE, THE APPEAL WOULD LIABLE TO BE DISMISSED ON THIS PRELIMINARY ISSUE ONLY. HENCE, NO USEFUL PURPOSE WOULD BE SERVED TO DELVE INTO OTHER SUBMISSIONS MAD E BY LD. AR. 6. IN THE RESULT, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH DECEMBER, 2019. SD/- SD/- (C.N. PRASAD) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 04/12/2019 SR.PS, JAISY VARGHESE 23456736 / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %'$ / THE RESPONDENT 3. - ( ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./ ' , , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.