IT 27(1)(3), NAVI MUMBAI V. HIMACHAL MITRA MANDAL CO OP CREDIT SOCIETY LTD, MUMBAI

ITA 7483/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3047 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 15-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOMANATH S UKKALI
• Assessee Lawyers: AJAY KIGNADWALA
• Keywords: Tax effect
• Section: 143(3); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH , MUMBAI BEFORE SRI MAHAVIR SINGH, J UDICIAL MEMBER ITA NO . 748 3 /MUM/2014 (A.Y.:2010 - 11 ) THE INCOME TAX OFFICER, WARD - 27 (1 ) (3 ), R. NO.406 , 4 TH FLOOR, TOWER NO.6, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI M UMBAI 400 703 VS. M/S. HIMACHAL MITRA MANDAL CO - OP. CREDIT SOCIETY LTD., SHOP NO.12, SURVENY NO.320, ROAD NO.5, PESTOM SAGAR, CHEMBUR, MUMBAI 400 089 PAN: AAAAH0613 D APPELLANT .. RESPONDENT APPELLANT BY SHRI SOMANATH S. UKKALI, AR RESPONDENT BY SHR I AJAY KIGNADWALA, AR DATE OF HEARING 21 - 06 - 16 DATE OF PRONOUNCEMENT 21 - 06 - 2016 O R D E R PER MAHAVIR SINGH , JM : THIS APPEAL BY THE REVENUE IS DIRECTED AGA INST THE ORDER OF THE CIT (A) - 33, MUMBAI PASSED IN APPEAL NO.CIT (A) - 33 / IT/200 /13 - 14 DATE D 30 - 09 - 2014 . ASSESS MENT W AS FRAMED BY THE ITO, WARD 22 (2) (1), MUMBAI FOR ASSESSMENT YEAR 2010 - 11 VIDE HIS ORDER DATED 26 - 03 - 2010 U/S 143(3) OF THE INCOME TAX ACT, 1961 (H EREINAFTER REFERRED TO AS THE ACT). 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSE SSEE IS AGAINST THE ORDER OF THE LEARNED CI T (A) IN NOT APPRECIATING THAT THE NEW SUB - CLAUSE (VIIIA) TO CLAUSE 24 OF SECTION 2 OF THE ACT AND NOT APPRECIATING THAT THE PRINCIPAL BUSINESS OF THE ASSESSEE IS BANKING. 3. AT THE OUTSET THE LEARNED COUNSEL F OR THE ASSESSEE POINTED OUT THAT THE TAX EFFECT IN TH IS APPEAL IS BELOW RS.10.00 LAC S AND FURTHER SUBMITTED 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 MAINTA INABLE AND BE DISMISSED. THE LEARNED SR. DR ALSO AGREED TO THE SUBMISSION OF THE LEARNED COUNSEL FOR THE ASSESSEE. ITA NO. 7483 /MUM/20 1 4 2 4 . I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. I FIND FROM T HE RECORDS BEFORE US THAT THE TAX INVOLVED IN THE DISPUTED ISSUE IS BELOW RS.10 L ACS AND THEREFORE, IN VIEW OF THE CIRCULAR NO 21/2015 DATED 10 TH DECEMBER, 2015 NO APPEAL SHOULD BE FILED BY THE REVENUE 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 RELEVANT EXTRACT THE SAID CBDT CIRCULAR (SUPRA) IS AS UNDER: - THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH I N HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5 . CONSIDERING THE ABOVE, THE APPEAL FILED BY THE REVENUE, IS THEREFORE DISMISSED. 6 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON 21 /06 / 201 6 . SD/ - ( MAHAVIR S INGH ) JUDICIAL MEMBER MUMBAI , DATED 21 /6 / 201 6 LAKSHMIKANTA DEKA/SR.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ASSISTANT REGISTRAR ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT ( A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FIL E. //TRUE COPY// ITA NO. 7483 /MUM/20 1 4 3 DATE INITIAL DICTATION PAD ATTACHED WITH THE DRAFT ORDER YES 1. DRAFT DICTATED ON 21 - 06 - 1 6 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 22 - 06 - 16 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7 . FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.