DCIT CEN CIR 14, MUMBAI V. SNEHA SURENDRA BARMECHA, GUJRAT

ITA 7445/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3369 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 18-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VACHASPATI TRIPATI
• Keywords: Retrospective amendment; Tax effect
• Section: 143(3); 142(1)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI SHAILENDRA KUMAR YADAV , JM AND SHRI RAJESH KUMAR, AM ./ I.T.A. NO. 7445 /MUM/ 201 3 ( / ASSESSMENT YEAR : 20 10 - 11 ) DY.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE - 14 , ROOM NO.1102, 11 TH FLOOR, OLD CGO BUILDING, M K ROAD, MUMBAI - 400020 / VS. MISS. SNEHA SURENDRA B A RMECHA, 6/1910, JADHA KHADI, MAHIDHAPURA, SURAT, GUJARAT - 395003 ./ PAN : AJBPB5571F / REVENUE BY SHRI VACHASPATI TRIPATI / ASSESSEE BY NONE / DATE OF HEARING : 9 .6. 2016 / DATE OF PRONOUNCEMENT : 9. 6. 2016 / O R D E R PER RAJESH KUMAR, A. M: THIS IS AN APPEAL FILED BY THE REVENUE CHALLENGING THE ORDER DATED 9.10.2013 OF LD.CIT(A) - 3 7 , MUMBAI , FOR ASSESSMENT YEAR 20 10 - 11 BY WHICH THE REVENUE IS CHALLENGING THE DELETI ON OF ADDITION MADE ON ACCOUNT OF LOSS ON ACCOUNT OF FOREIGN EXCHANGE DIFFERENCE. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME ON 24.9.2010 DECLARING TOTAL INCOME AT RS. 2,09,793/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND THE STATUTORY NOTICES WER E ISSUED TO THE ASSESSEE U/S 143(2) AND 142(1) AND SERVED UPON THE ASSESSEE. T HE ASSESSING OFFICER AFTER MAKING 2 7445 /MUM/ 201 3 CERTAIN DISALLOWANCES AND ADDITION FRAMED THE ASSESSMENT U/S 143(3) AT RS. 13,88,000 / - WHICH INCLUDES RS.4863/ - ON ACCOUNT OF SPECULATION PROFIT, EXCHANGE LOSS RS.11,78,225/ - PROFIT , INTEREST ETC . AGGRIEVED BY THE ORDER OF THE AO , THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD.CIT(A), WHO IN TURN DELETED TH E ADDITION AS PRAYED FOR BY THE ASSESSEE. BEING AGGRIEVED BY THE ORDER O F LD.CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 3 . AT THE OUTSET, WE WOULD LIKE TO POINT OUT THAT LD. CIT(A) HAS DELETED THE AMOUNT OF RS.11,19,149.03 ON ACCOUNT OF EXCHANGE LOSS IN THE ASSESSMENT YEAR UNDER CONSIDERATION AND LIBERTY TO ALLOW BALANCE EX CHANGE LOSS OF RS.3,57,946/ - IS TO BE SET OFF IN THE YEAR WHEN THE INV. NO.9/210 FINALLY REMITTED. THEREFORE, THE TAX EFFECT INVOLVED IN THIS APPEAL REMAINS BELOW RS.10 LACS. EVEN CONSIDERING THE ADDITION MADE BY THE AO, THE TAX EFFECT INVOLVED IN THIS AP PEAL IS BELOW RS.10 LAKHS. THE CENTRAL BOARD OF DIRECT TAXES, HAS ISSUED A CIRCULAR BEARING NO.21/2015 DATED 10.12.2015 PRESCRIBING NEW MONETARY LIMIT OF RS.10.00 LAKHS FOR PREFERRING APPEAL AGAINST THE ORDERS PASSED BY LD CIT(A) BEFORE THE TRIBUNAL. ACCO RDING TO THE ABOVE SAID CIRCULAR, THE REVENUE IS PRECLUDED FROM PURSUING THIS APPEAL, AS THE SAID CIRCULAR HAS RETROSPECTIVE EFFECT AND IS APPLICABLE TO THE EXISTING APPEALS ALSO. ACCORDINGLY, WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIAL ON RECORD. W E FIND THAT THE QUANTUM IN DISPUTE IS RS.11,19,149.03 AND THE TAX EFFECT INVOLVED THEREIN IS LESS THAN RS.10 LAKHS. THEREFORE, IN VIEW OF THE INSTRUCTION ISSUED BY CBDT, WE FIND THAT TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10 LAKHS AND THEREFOR E, THIS APPEAL IS NOT MAINTAINABLE. ACCORDINGLY, WE DISMISS THE APPEAL OF THE REVENUE BEING BELOW RS.10 LAKHS. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 9 .6. 2016. SD SD ( SHAILENDRA KUMAR YADAV ) (RAJESH KUMAR) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 9 .6.2016 SR.PS:SRL: 3 7445 /MUM/ 201 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CI T(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, TRUE COPY / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI