INCOME TAX OFFICER 15(1)(2), MUMBAI V. M/S,ECSTACY CONSTRUCTION PRIVATE LIMITED, MUMBAI

ITA 7046/MUM/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7350 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 11-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT PRATAP SINGH
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

P A G E | 1 ITA NO.7046/MUM/2017 A.Y. 2013 - 14 THE INCOME TAX OFFICER - 15(1)(2) VS. M/S ESCTACY CONSTRUCTION PVT. LTD. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI BEFORE SHRI S. RIFAUR RAHMAN (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NO. 7046/MUM/2017 (ASSESSMENT YEAR: 2013 - 14) THE INCOME TAX OFFICER - 15(1)(2) ROOM NO. 15B, GROUND FLOOR, AAYAKAR BHAVAN, M.K. ROAD, CHURCHGATE, MUMBAI 400 020 VS. M/S ESCTACY CONSTRUCTION PVT. LTD. 902, CASTLE ROCK, OFF EASTERN EXPRESS HIGHWAY, HARIOM NAGAR, MULUND (W), MUMBAI 400081 PAN NO. AACCE3749F APPELLANT RESPONDENT REVENUE BY : MR. AMIT PRATAP SINGH, D.R ASSESSEE BY : NONE DATE OF HEARING : 1 7 /10/2019 DA TE OF PRONOUNCEMENT : 1 7 /10/2019 ORDER PER RAVISH SOOD, JM THE PRESENT APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER PASSED BY THE COMMISS IONER OF INCOME TAX (APPEALS) - 24, [FOR SHORT CIT(A)], MUMBAI, DATED 04.09.2017 WHICH IN TURNS ARISES FROM THE ASSESSMENT ORDER PASSED BY THE A.O UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961, (FOR SHORT ACT) , DATED 29.03.2016 . 2. CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DATE D 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. 3. 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 AGAINST WHICH APPEAL IS INTENDED TO BE FILED. P A G E | 2 ITA NO.7046/MUM/2017 A.Y. 2013 - 14 THE INCOME TAX OFFICER - 15(1)(2) VS. M/S ESCTACY CONSTRUCTION PVT. LTD. 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. 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 SL PS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019 HAS FIXED THE MONETARY LIMIT FOR FIL ING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. IN THE INSTANT APPEAL FILED BY THE DEPARTMENT, THE TAX EFFECT INVOLVED IS BELOW THE MONETARY LIMIT OF RS.50,00,000/ - . THE SAME WAS BROUGHT TO THE NOTICE OF THE LD. DEPARTMENTAL REPRESENTATIVE (DR) . NONE HAD PUT UP AN APPEARANCE ON BEHALF OF THE ASSESSEE RESPONDENT. 6. BEFORE US, THE LD. DR SUBMITS THAT LIBERTY MAY KINDLY BE GIVEN TO RAISE, AFTER NECESSARY FURTHER VERIFICATION, AND TO SEEK RECALL OF THE DISMISSAL OF APPEAL AND ITS RESTORATION , IN CASE IT CAN BE SHOWN THAT THE APPEAL IS COVERED BY THE EXCEPTIONS. 7. WE AGREE WITH THE ABOVE CONTENTIONS OF THE LD. DR AND MAKE IT CLEAR THAT THE APPELLANT SHALL BE AT LIBERTY TO POINT OUT THE EXCEPTIONS AND WE WILL TAKE APPROPRIATE REMEDIAL MEASURES IN THIS REGARD. 8. WITH THE ABOVE OBSERVATIONS THE APPEAL INVOLVING TAX EFFECT OF LESS THAN RS.50,00 ,000/ - IS DISMISSED . ORDER PRON OUNCED IN THE OPEN COURT ON 1 7 /10 /2019. S D / - S D / - ( S .RIFAUR RAHMAN ) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 1 7 /10/2019 ROHIT, P.S. P A G E | 3 ITA NO.7046/MUM/2017 A.Y. 2013 - 14 THE INCOME TAX OFFICER - 15(1)(2) VS. M/S ESCTACY CONSTRUCTION PVT. LTD. 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