ASSISTANT COMMISSIONER OF INCOME TAX - CIRCLE 11(3)(2), MUMBAI V. VIDITI INVESTMENT PRIVATE LIMITED, MUMBAI

ITA 7321/MUM/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4980 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 22-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SATYANARAYAN RAJU
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F MUMBAI BEFORE SHRI JOGINDER SINGH (VICE PRESIDENT) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 7321/MUM/2017 ASSESSMENT YEAR: 2012 - 13 & ITA NO. 7322/MUM/2017 ASSESSMENT YEAR: 2013 - 14 ACIT, CIRCLE - 11(3)(2), ROOM NO. 427, AAYAKAR BHAVAN, 4 TH FLOOR, M.K. MARG, MUMBAI - 400020. VS. M/S VIDIT INVESTMENT PVT. LTD. F - 145, RAM MANDIR ROAD VILE PARLE (E), MUMBAI - 400057. PAN NO. AAACV1322P APPELLANT RESPONDENT REVENUE BY : M R. B. SATYANARAYAN RAJU , DR ASSESSEE BY : MR. ANUJ KIS NADWALA, AR DATE OF HEARING : 1 5 /01/2019 DATE OF PRONOUNCEMENT : 22/01/2019 ORDER PER N.K. PRADHAN, AM THE CAPTIONED APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS) - 18 , MUMBAI [IN SHORT CIT(A) ] AND ARISE OUT OF ORDER PASSED U/S 143(3) OF THE INCOME TAX ACT 1961 (THE ACT). AS COMMON ISSUES ARE INVOLVED, WE ARE PROCEEDING TO DISPOSE THEM OFF THROUGH A CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. VIDIT INVESTMENT ITA NO. 7321 & 7322/MUM/2017 2 2. THE CENTRAL BOARD OF DIRECT TAXES (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 MEAN S THE 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. FURTHER, TAX EFFECT SH ALL 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 INTER EST 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 ORD ER TO BE APPEALED AGAINST. 3 . IN THE CAPTIONED APPEALS, AN ADDITION OF RS.40,11,062/ - HAS BEEN MADE IN THE AY 2012 - 13 AND RS.31,04,284/ - IN AY 2013 - 14. THUS THE TAX EFFECT WOULD BE LESS THAN RS.20,00,000/ - IN THE ABOVE ASSESSMENT YEARS. 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 SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. P ENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. VIDIT INVESTMENT ITA NO. 7321 & 7322/MUM/2017 3 4 . BEFORE US, THE LD. DR SUBMITS THAT LIBERTY MAY KINDLY BE GIVEN TO RAISE, AFTER NECESSARY FURTHER VERIFICATION, AND TO SEEK RECALL THE DISMISSAL AND RESTORATION OF THE APPEAL IN CASE THE SAME IS COVERED BY THE EXCEPTIONS IN THE AFOREMENTIONED CIRCULAR. THERE WAS NO OPPOSITION FROM T HE LD. COUNSEL OF THE ASSESSEE TO THE ABOVE SUBMISSION OF THE LD. DR. 5 . 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, IF ANY BY FILING MISCELLANEOUS APPLICATION AND WE WILL TAKE APPROPRIATE REMEDIAL MEASURES IN THIS REGARD. 6 . WITH THE ABOVE OBSERVATIONS, THIS APPEAL S , INVOLVING TAX EFFECT OF LESS THAN RS.20,00,000/ - ARE DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 22/01/2019. SD/ - SD/ - (JOGINDER SINGH) (N.K. PRADHAN) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI ; DATED: 22/01/2019 RAHUL SHARMA, SR. P.S. 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