ASST CIT CIR 6(2)(2), MUMBAI V. ELEKTROMAG DEVICES P. LTD, MUMBAI

ITA 7112/MUM/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8011 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 05-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S ABIRAMA KARTHIKEYAN LD
• Assessee Lawyers: KIRAN PANCHOLI LD
• Keywords: Tax effect

Judgement Text

ITA NO.7112/MUM/2016 ELEKTROMAG DEVICES PRIVATE LIMITED ASSESSMENT YEAR: 2012-13 1 IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , , BEFORE HONBLE SHRI PAWAN SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.7112/MUM/2016 ( / ASSESSMENT YEAR: 2012-13) ASST. COMMISSIONER OF INCOME TAX-6(2)(1) ROOM NO. 563 AAYKAR BHAVAN, M.K.ROAD 5 TH FLOOR, CHURCHGATE MUMBAI-20 / VS. ELE K TROMAG DEVI CES PVT. LTD. 406, 4 TH FLOOR UNIQUE INDUSTRIAL ESTATE OFF. VEER SAVARKAR MARG MUMBAI 400 025 ./ ./PAN/GIR NO. AAACE-1136-G ( /APPELLANT ) : ( !' / RESPONDENT ) ASSESSEE BY : KIRAN PANCHOLI- LD.AR REVENUE BY : S.ABIRAMA KARTHIKEYAN, LD. DR / DATE OF HEARING : 01/01/2019 / DATE OF PRONOUNCEMENT : 02/01/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY] 2012-13 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-12, MUMBAI [CIT(A)], APPEAL NO. CIT(A)-12/ACIT-6(2)(2)/42/15-16 DATED 07/09/2016 QUA DELETION OF CERTAIN SUBSTANTIVE ADDITIONS U/S14A FO R RS.35.98 LACS & PROTECTIVE ADDITION U/S 36(1)(III) FOR RS.44.46 LACS. ITA NO.7112/MUM/2016 ELEKTROMAG DEVICES PRIVATE LIMITED ASSESSMENT YEAR: 2012-13 2 2. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE [ AR], AT THE OUTSET, SUBMITTED THAT TAX EFFECT OF THE QUANTUM AD DITIONS AS CONTESTED BY THE REVENUE IS LESS THAN PRESCRIBED LIMIT OF RS. 20 LACS AND THE SAME IS COVERED BY RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.03/2018 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THE WORKING OF THE TAX EFFECT HAS BEEN PLACED ON RECORD . THE LD. DR HAS CONTROVERTED THE SAME BY SUBMITTING THAT NECESSARY INSTRUCTIONS / CERTIFICATE, IN THIS REGARD, WOULD BE REQUIRED FROM HIGHER AUTHORITIES. 3. WE HAVE GONE THROUGH THE CIRCULAR AND FIND THAT THE TAX EFFECT OF QUANTUM IN DISPUTE IS BELOW PRESCRIBED LIMIT OF RS. 20 LACS AND THE ASSESSEE STOOD BENEFITTED BY THE ABOVE CIRCULAR ISS UED BY CBDT WHEREIN THE MINIMUM MONETARY LIMIT FOR FILING THE A PPEALS BEFORE VARIOUS APPELLATE AUTHORITIES HAVE BEEN FIXED AS UNDER: - S. NO. APPEALS/ SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 20.00,000 2 BEFORE HIGH COURT 50.00,000 3 BEFORE SUPREME COURT 1,00.00,000 THE AFORESAID LIMITS, AS PER PARA 13 OF THE CIRCULAR APPLIES TO PENDING APPEALS ALSO. IN VIEW OF THE ADMITTED POSITION, WE DISMISS THE REVENUES APPEAL. 4. SO FAR AS THE CONTENTIONS RAISED BY LD. DR IS CO NCERNED, WE FIND THAT AFORESAID CIRCULAR DOES NOT ENVISAGE OBTAINING OF ANY CERTIFICATE FROM ANY AUTHORITIES, IN ANY MANNER. NEVERTHELESS, THE R EVENUE IS FREE TO MOVE APPROPRIATE APPLICATION TO RECALL THIS ORDER, IF AT A LATER STAGE, IT IS FOUND THAT THE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN THE ITA NO.7112/MUM/2016 ELEKTROMAG DEVICES PRIVATE LIMITED ASSESSMENT YEAR: 2012-13 3 AFORESAID CIRCULAR OR IN CASE THE TAX EFFECT OF THE QUANTUM ADDITIONS AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. 5. RESULTANTLY, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 ND JANUARY, 2019. SD/- SD/- (PAWAN SINGH) ( MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 02/01/2019 SR.PS:- JAISY VARGHESE !'#' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT 3. ) ( ) / THE CIT(A) 4. ) / CIT CONCERNED 5. * +!$, , , , / DR, ITAT, MUMBAI 6. + -. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.