ASST CIT 16(3), MUMBAI V. STAR BRILLIAN, MUMBAI

ITA 7331/MUM/2013

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3419 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 23-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 13-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUM BAI BEFORE SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM ./ I.T.A. NO.7331/MUM/2013 ( / ASSESSMENT YEAR:2009-10) ACIT-16(3), MATRU MANDIR, 2 ND FLOOR, R.NO.206, TARDEO ROAD, MUMBAI-400 007. / VS. M/S STAR BRILLIAN 108/319, PRASAD CHAMBERS, MAMA PARMANAND MARG, OPERA HOUSE, MUMBAI-400 004. ./ ./PAN/GIR NO. AAAFS 3628J ( /APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI LOVE KUMAR / RESPONDENT BY : NONE / DATE OF HEARING : 20/01/2016 !'# / DATE OF PRONOUNCEMENT : 21/01/2016 $% / O R D E R PER RAJESH KUMAR, A. M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 24.09.2013 OF COMMISSIONER OF INCOME TAX (APPEALS)-27, MUMBAI (HE REINAFTER CALLED AS THE CIT(A) ) FOR ASSESSMENT YEAR 2009-10. 2 ITA NO.7331/MUM/2013 ACIT. VS M/S STAR BRILLIAN 1. WHETHER ON THE FACTS AND CIRCUMSTANCES AND IN LAW, THE LD. CIT(A) HAS ERRED IN HOLDING THAT MARK TO MARKET LOSS OF RS.2 2,48,408/- ARISING ON VALUATION OF FORWARD EXCHANGE CONTRACTS ON THE CLOS ING DATE OF ACCOUNTING YEAR IS NOT A NOTIONAL LOSS AND, THEREFORE, ALLOWAB LE? 2. WHETHER ON THE FACTS AND CIRCUMSTANCES AND IN LAW, THE LD. CIT(A) WAS RIGHT IN NOT TAKING COGNIZANCE OF THE DECISION OF T HE ITAT, E BENCH, MUMBAI IN ITA NO.506/MUM/2013 DATED 03.05.2013 IN T HE CASE OF M/S S. VINODKUMAR DIAMONDS PVT. LTD.? 3. THE LD CIT(APPEAL) GROSSLY ERRED ON FACTS IN NOT-CO NFIRMING DISALLOWANCE OF MARK TO MARKET LOSS OF RS.22,48,408/- ON ACCOUNT OF OUTSTANDING FORWARD CONTRACTS. 2. AT THE OUTSET THE LD. AR OF THE ASSESSEE POINTED OUT THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10.00 LAKHS AND FURTHER SUBMITTE D THAT IN VIEW OF THE CBDT CIRCULAR NO.21/2015, DATED 10.12.2015 BROUGHT OUT BY THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FI NANCE , GOVERNMENT OF INDIA, THE APPEAL WAS NOT MAINTAINABLE AND BE DISMISSED. T HE LD. DR ALSO AGREED TO THE SUBMISSION OF THE LD. AR. 3 ITA NO.7331/MUM/2013 ACIT. VS M/S STAR BRILLIAN 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND FROM THE RECORDS BEFORE US THAT THE TAX INV OLVED IN THE DISPUTED ISSUE IS BELOW RS.10 LACS AND THEREFORE, IN VIEW OF THE CIRC ULAR NO 21/2015 DATED 10 TH DECEMBER, 2015 NO APPEALS SHOULD BE FILED BY THE RE VENUE BEFORE THE TRIBUNAL WHICH HAS TAX EFFECT OF RS. 10.00 LACS OR LESS AND THIS CIRCULAR IS ALSO APPLICABLE RETROSPECTIVELY TO ALL PENDING APPEALS. THE RELEVAN T EXTRACT THE SAID CBDT CIRCULAR (SUPRA) IS AS UNDER:- THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PEN DING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDI NG APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN/NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE IN STRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. CONSIDERING THE ABOVE, THE APPEAL FILED BY THE R EVENUE, IS THEREFORE DISMISSED. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21ST JANUARY, 2016 SD/- SD/- (C.N. PRASAD) (RAJESH KUMAR) &' $ / JUDICIAL MEMBER $ / ACCOUNTANT MEMBER ( ) MUMBAI; *$ DATED : 21.01.2016 PS. ASHWINI GAJAKOSH 4 ITA NO.7331/MUM/2013 ACIT. VS M/S STAR BRILLIAN / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT - CONCERNED 5. ./0 ''12 , 12# , ( ) / DR, ITAT, MUMBAI 6. 045 6 / GUARD FILE / BY ORDER, / !'# (DY./ASSTT. REGISTRAR) #$ %, ( ) / ITAT, MUMBAI.