DCIT - 14 (3)(2), MUMBAI V. SUNDARAM MULTIPAP LTD., MUMBAI

ITA 7201/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8348 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2015-2016
• Appeal Filed On: 14-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MISS. POONAM NARAM
• Keywords: Earning of tax free income; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , G BENCH MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 7201/MUM/2018 FOR ASSESSMENT YEARS: 2015-16 DCIT-14(3)(2), ROOM NO. 482(1), 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MARINE LINES, MUMBAI-400020. VS M/S SUNDARAM MULTIPAP LIMITED 5/6, PAPA INDUSTRIAL ESTATE, SUREN ROAD, ANDHERI (EAST), MUMBAI-400093. PAN : AADCS7829K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V. VINOD KUMAR (SR. DR) RESPONDENT BY : MISS. POONAM NARAM(CA) DATE OF HEARING : 20/01/2020 DATE OF PRONOUNCEMENT : 20/01/2020 ORDER UNDER SECTION 254(1) O F INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS APPEAL BY REVENUE UNDER SECTION 253 OF INCOME TAX ACT IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-22, [CIT(A)], MUMBAI DATED 25.09.2018 FOR ASSESSMENT YE AR 2015-16. 2. AT THE OUTSET OF HEARING, THE LD. AUTHORIZED REPRES ENTATIVE (AR) OF THE ASSESSEE SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS ONLY RS. 28,37,362/-, WHICH IS BELOW THE MONETARY LIMIT OF RS.50,00,000/- PRESCRIBED BY CBDT IN ITS CIRCULAR NO.17/2019 DATED 8 TH AUGUST 2019. THE LD. AR OF THE ASSESSEE FURTHER SUBMITS THAT ADMITTE DLY THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN RS. 50,00,000/-. THEREFORE, THE PRESENT APPEAL IS SQUARELY COVERED BY THE CBDT CIRCULAR NO. 17/2019 DATED 8 TH AUGUST 2019 AND IS LIABLE TO BE DISMISSED. THE LD. AR FOR THE ASSESSEE ALSO ITA NO. 7201 MUM 2018-M/S SUNDARAM MULTIPAP LIMITED . 2 FILED WORKING OF TAX EFFECT OF RS. 28,37,362/- , CO PY OF WHICH WAS SUPPLIED TO LD DR FOR THE REVENUE. THE LD. AR OF THE ASSESSEE A LSO SUBMITTED THAT TAX EFFECT OF RS. 28,37,362/- IS OTHERWISE MENTIONED IN PARA-10 OF FORM 36 (APPEAL FORM). 3. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESENTAT IVE (DR) FOR THE REVENUE AFTER GOING THROUGH THE WORKING OF THE TAX FAIRLY A GREED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MON ETARY LIMIT OF TAX EFFECT FIXED BY CBDT IN A RECENT CIRCULAR. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTIES A ND PERUSED THE ORDER OF THE LOWER AUTHORITIES. THE ASSESSING OFFICER WHILE PASSING THE ASSESSMENT ORDER MADE DISALLOWANCE UNDER SECTION 14A OF RS. 91 ,82,400/-. ON APPEAL BEFORE LD CIT(A) THE ASSESSEE STATED THAT NO EXEMPT INCOME WAS EARNED DURING THE YEAR THUS, NO DISALLOWANCES UNDER SECTIO N14A IS WARRANTED. THE LD CIT(A) AFTER CONSIDERING THE SUBMISSION OF THE ASSE SSEE THAT NO EXEMPT INCOME WAS EARNED BY ASSESSEE DURING THE RELEVANT P ERIOD, THUS, NO DISALLOWANCE UNDER SECTION 14A IS ATTRACTED AND DEL ETED THE ENTIRE DISALLOWANCE. 5. CONSIDERING THE SUBMISSIONS OF BOTH THE LD. REPRESE NTATIVES OF THE PARTIES, WE FIND THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT OF RS. 50,00,000/- FIXED BY CBDT CIRCULAR NO. 17/2019 DATED 8 TH AUGUST 2019, THEREFORE, THE APPEAL OF REVENUE IS DI SMISSED BEING NOT MAINTAINABLE. EVEN ON MERIT, WE FIND THAT WHEN NO E XEMPT INCOME WAS ITA NO. 7201 MUM 2018-M/S SUNDARAM MULTIPAP LIMITED . 3 EARNED BY ASSESSEE, NO DISALLOWANCE UNDER SECTION 1 4A FOR THE YEAR UNDER CONSIDERATION IS WARRANTED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED D UE TO TAX EFFECT AS WELL AS ON MERIT. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT O N THIS 20/01/2020. SD/- SD/- (S. RIFAUR RAHMAN (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 20.01.2020 SK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT BY ORDER ASSISTANT REGISTRAR IT AT MUMBAI