ACIT- 6 (2)(2), MUMBAI V. ENHANCE AMBIENT COMMUNICATION PVT. LTD., MUMBAI

ITA 7204/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1895 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 14-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT PRATAP SINGHLD
• Keywords: Tax effect
• Section: 271(1)(c); 13

Judgement Text

ITA NO.7204/MUM/2018 M/S. ENHANCE AMBIENT COMMUNICATIONS PVT. LTD. ASSESSMENT YEAR :2010-11 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.7204/MUM/2018 ( / ASSESSMENT YEAR:2009-10) A CIT - 6(2) ( 2 ) ROOM NO.504 AAYKAR BHAVAN M.K. ROAD MUMBAI-400 020. / VS. M/S. ENHANCE AMBIENT COMMUNICATION PVT. LTD. 314, 3 RD FLOOR, JOLLY BHAVAN NO.1 10, NEW MARINE LINES CHURCHGATE, MUMBAI !' ./ ./PAN/GIR NO. AABCE-6766-H ( '$ /APPELLANT ) : ( %'$ / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI AMIT PRATAP SINGH-LD. DR / DATE OF HEARING : 09/12/2019 / DATE OF PRONOUNCEMENT : 09/12/2019 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2009-10 CONTEST THE ORDER OF LD. COMMIS SIONER OF INCOME- TAX (APPEALS)-12, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-12/DCIT-6(2)(2)/B2-140/15-16 DATED 11/09/2018 QUA DELETION OF PENALTY U/S 271(1)(C) FOR RS.24,190/- IN RESPECT OF DISALLOWANCE OF RS.78,283/- MADE IN THE ASSESSMENT ORDER ON ACCOUNT OF BOGUS ITA NO.7204/MUM/2018 M/S. ENHANCE AMBIENT COMMUNICATIONS PVT. LTD. ASSESSMENT YEAR :2010-11 2 PURCHASES. THE STATED PENALTY WAS IMPOSED BY LD. AS SESSING OFFICER VIDE ORDER DATED 29/09/2015 BUT THE SAME WAS DELETE D BY FIRST APPELLATE AUTHORITY, FINDING MERITS IN ASSESSEE SUBMISSIONS. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 2. AT THE TIME OF HEARING, NONE APPEARED FOR ASSESS EE AND NO VALID ADJOURNMENT APPLICATION IS ON RECORD. THEREFORE, TH E MATTER WAS PROCEEDED WITH EX-PARTE QUA THE ASSESSEE IN VIEW OF THE FACT THAT THE QUANTUM OF PENALTY BEING CONTESTED BY REVENUE IS LE SS THAN MONETARY LIMIT OF RS. 50 LACS AS PRESCRIBED BY CBDT IN ITS R ECENTLY ISSUED CIRCULAR NO.17/2019 DATED 08/08/2019 [F.NO.279/MISC.142/2007 -TTJ(PT.) GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMEN T OF REVENUE] AND THEREFORE, THE APPEAL IS NOT MAINTAINABLE IN TERMS OF THE SAID CIRCULAR. THE LD. DR WAS UNABLE TO POINT OUT ANY EXCEPTION WH ICH WOULD SUGGEST THAT THE BENEFIT OF SAID CIRCULAR WOULD NOT BE APPL ICABLE TO FACTUAL MATRIX. 3. UPON PERUSAL OF CASE RECORDS, PRIMA FACIE, IT APPEARS THAT THE TAX EFFECT OF QUANTUM OF PENALTY BEING CONTESTED BY THE REVENUE IS LESS THAN PRESCRIBED LIMIT OF RS.50 LACS AND THE SAME IS COVE RED 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 CIRCUL AR NO.3 OF 2018 DATED 11/07/2018 ISSUED BY CBDT AS AMENDED ON 20/08/2018. UNDISPUTEDLY, THE FACTUAL MATRIX IS NOT COVERED BY ANY OF THE EXC EPTIONS AS PROVIDED IN PARA-10 OF CIRCULAR NO. 3 OF 2018 DATED 11/07/2018. THE AFORESAID LIMITS, AS PER PARA 13 OF THE CIRCULAR NO. 3 OF 2018 DATED 11/07/2018, APP LIES TO PENDING APPEALS ALSO. IN VIEW OF THE ADMITTED POSIT ION, WE DISMISS THE REVENUES APPEAL. ITA NO.7204/MUM/2018 M/S. ENHANCE AMBIENT COMMUNICATIONS PVT. LTD. ASSESSMENT YEAR :2010-11 3 4. AT THE SAME TIME, A LIBERTY IS GIVEN TO REVENUE TO SEEK RECALL OF THE APPEAL, IF AT A LATER STAGE, IT IS FOUND THAT THE M ATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN ANY OF THE CIRCULAR OR IN CA SE THE TAX EFFECT AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. 5. IN THE RESULT, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH DECEMBER, 2019. SD/- SD/- (C.N. PRASAD) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 09/12/2019 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. ./ ' 0 , 0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.