ITO 15(2)(1), MUMBAI V. INVENTURUS KNOWLEDGE SERVICES P.LTD, MUMBAI

ITA 714/MUM/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3680 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 12-05-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 11-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHWAS JADHAV
• Assessee Lawyers: S C TIWARI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL,MUMBAI BENCH E, MUMBAI BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.714/MUM/2016 ASSESSMENT YEAR: 2010-11 ITO 15(2)(1), ROOM NO. 452, 4 TH FLOOR, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI-400020. VS. M/S INVENTURES KNOWLEDGE SERVICES PVT. LTD., THE CORPORATE CENTRE, 4 TH FLOOR, LBS MARG, MULUND (WEST), MUMBAI- 400080. PAN: AABCK4601P (APPELLANT) (RESPONDENT) REVENUE BY : SHRI VISHWAS JADHAV (DR) ASSESSEE BY : SHRI S.C. TIWARI (AR) DATE OF HEARING : 12.05.2015 DATE OF ORDER : 19.05.2016 O R D E R PER PAWAN SINGH, JM: 1. THE PRESENT APPEAL CAME UP FOR HEARING ON 13/05/201 6, LD. AR OF THE ASSESSEE DURING THE HEARING CLAIMED THAT THE TAX EF FECT IN THE PRESENT APPEAL IS BELOW THE MONETARY LIMIT PRESCRIBED BY CB DT CIRCULAR 21/2015 DATED 10.12.2015, AND THE APPEAL IS NOT MAI NTAINABLE U/S 268A OF THE ACT. THE LD. AR WAS QUESTIONED DURING THE HE ARING AS TO HOW THE 2 ITA NO. 714/MUM/2016- M/S INVENTURUS KNOWLEDGE SERV ICES P. LTD. TAX IMPACT WOULD EXCEED RS. 10 LACS IN VIEW OF THE SET OFF OF LOSS OF RS. 109.99 LACS FOR AY2009-10 AGAINST THE CURRENT YEAR S IMPUGNED INCOME OF RS. 114.66 LACS. THIS IS AS THE SAME (LOSS) STAN DS TO BE RESTORED IF THE IMPUGNED INCOME IS ALLOWED AS TAX EXEMPT, I.E., AS HELD BY LD. CIT(A). HE EXPLAINED THAT THIS SHALL NEVERTHELESS NOT BE O F ANY CONSEQUENCE AS THE SAID LOSS IS FROM THE SAME ESTABLISHMENT AND, A CCORDINGLY, BEARS THE SAME CHARACTER AS INCOME (FOR CURRENT YEAR) AGAINST WHICH IT IS SET OFF. THAT IS THE SAID LOSS SHALL NOT FORM PART OF TOTAL INCOME U/S 2(45) OF THE ACT. THE APPEAL OF THE REVENUE IS THUS LIABLE TO BE DISMISSED AS NOT MAINTAINABLE U/S 268A OF THE ACT. WE AGREE IN-AS-MU CH AS, AS IS WELL- SETTLED, INCOME INCLUDES LOSS, WITH THE FACTUAL POSITION BEING NOT DENIED OR OBJECTED TO BY THE LD. DR. 2. FURTHER THERETO, WE HAVE HOWEVER NOT BEEN INFORMED BY ANY OF THE PARTIES, IF THE REVENUE IS IN APPEAL BEFORE HONBLE HIGH COURT FOR THE IMMEDIATELY PRECEDING YEAR, THE ORDER BY THE TRIBUN AL FOR WHICH YEAR (AY2010-11)HAS BEEN ADOPTED BY THE LD.CIT(A).WE, TH EREFORE, WITHOUT PREJUDICE TO THE FOREGOING, MAY ADD THAT IN THE EVE NTUALITY OF THE TRIBUNALS ORDER (SUPRA) BEING REVERSED BY THE HON BLE HIGH COURT, SO THAT THE IMPUGNED INCOME FORMS PART OF THE TOTAL IN COME, THE REVENUES APPEAL BEFORE US SHALL BECOME MAINTAINABLE IN VIEW OF THE PROVISION OF CLAUSE-4 OF THE CBDT CIRCULAR 21/2015 DATED 10.12.2 015 DEFINING TAX EFFECT AS INCLUDING NOTIONAL TAX ON THE RETURNED LO SS REDUCED. THE REVENUE SHALL IN THAT CASE MOVE THE TRIBUNAL FOR RE STORING ITS INSTANT APPEAL, AND THE TRIBUNAL OBLIGED TO RESTORE THE SAM E FOR A DECISION ON MERITS. SUBJECT TO RESERVING THE RIGHT FOR RESTORIN G ITS APPEAL UNDER 3 ITA NO. 714/MUM/2016- M/S INVENTURUS KNOWLEDGE SERV ICES P. LTD. APPROPRIATE CIRCUMSTANCES, WE DISMISS THE REVENUES APPEAL AS NOT MAINTAINABLE. WE DECIDE ACCORDINGLY. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH MAY, 2016. SD/- SD/- (SANJAY ARORA) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED 19/05/2016 S.K.PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / (ASSTT.REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. !'# / GUARD FILE. $ //TRUE COPY/