ITO 2(3)(1), MUMBAI V. SHIVAASHISH GUPTA, MUMBAI

ITA 7559/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2728 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 18-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N SATHYA MOORTHY
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E B ENCH, MUMBAI BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, JUDICIAL MEMBER / I .TA NO. 7559/MUM/2014 ( / ASSESSMENT YEAR:2010-11 THE ITO, (IT)-2(3)(1), SCINDIA HOUSE, BALLARD PIER, N.M. ROAD, MUMBAI-400 038 / VS. MR. SHIVAASHISH GUPTA, APARTMENT 122, ASHOK BLDG., NAPEAN SEA ROAD, MUMBAI-400 06 ./ ./ PAN/GIR NO. AQWPG 371N ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI N. SATHYA MOORTHY / RESPONDENT BY: NONE / DATE OF HEARING :21.07.2016 ! / DATE OF PRONOUNCEMENT :21.07.2016 / O R D E R PER C.N. PRASAD, JM: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF THE LD. CIT(A)-10, MUMBAI DATED 29.9.2014 PERTAINING TO AS SESSMENT YEAR 2010-11. 2. THE GROUND RAISED BY THE REVENUE READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION MADE ON ACCOUNT OF INTEREST RECEIVED BY THE ASSESSEE FROM M N/S. SRI ITA NO. 7559/M/2014 2 SANSKAR SCHOOL OF ETIQUETTE AND CAREER DEVELOPMENT PVT. LTD, TREATING THE METHOD OF ACCOUNTING OF THE ASSES SEE AS CASH BASIS WITHOUT APPRECIATING THE FACT THAT INT EREST HAD BEEN ADDED TO THE OUTSTANDING LOAN BALANCE OF THE A PPELLANT BY THE SCHOOL, AND THUS THE ACT OF RECEIPT HAD BEEN COMPLETED THROUGH CREDIT INTO THE ACCOUNT. 3. BEFORE GOING INTO THE MERITS OF THE CASE, WE CON SIDER CBDTS LATEST INSTRUCTIONS VIDE CIRCULAR NO.21/2015 DATED 10/12/2015, THE RELEVANT PORTION OF WHICH READ AS UNDER:- CIRCULAR NO. 21/2015 F NO 279/MISC. 142/2007-ITJ (PT) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES NEW DELHI THE 10TH DECEMBER, 2015 SUBJECT: REVISION OF MONETARY LIMITS FOR FILING O F APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TR IBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT - MEAS URES FOR REDUCING LITIGATION - REG REFERENCE IS INVITED TO BOARD'S INSTRUCTION NO 5/20 14 DATED 10.07.2014 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR FILING DEPARTMENTAL APPEALS (IN INCO ME-TAX MATTERS) BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE INSTRUCTION, IT HA S BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT KEEPING IN VIEW TH E MONETARY LIMITS AND CONDITIONS SPECIFIED BELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: - ITA NO. 7559/M/2014 3 S. NO APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMIT S PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECI DED ON MERITS OF THE CASE. 4. IT IS FURTHER CLARIFIED BY THE BOARD IN ITS CIRC ULAR THAT THESE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS AND T RIBUNALS. IT IS ALSO MADE CLEAR THAT PENDING APPEALS BELOW THE MONITORY LIMITS FIXED IN PARA-3 ABOVE MAY BE WITHDRAWN OR NOT PRESSED. 5. IN THE CASE IN HAND, THE TOTAL DEMAND AS PER CIT (A)S ORDER IS LESS THAN THE AMOUNT OF RS. 10,00,000/-, WHICH IS BELOW THE MONETARY LIMITS AS MENTIONED IN CBDT CIRCULAR DATED 10.12.2015 (SUPRA) . FOLLOWING THE SAME, THIS APPEAL OF THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST JULY, 2016. SD/- SD/ (RAJENDRA) (C.N. PRASAD ) ' / ACCOUNTANT MEMBER $ %' /JUDICIAL MEMBER MUMBAI; (' DATED 21 ST JULY, 2016 . % . ./ RJ , SR. PS ITA NO. 7559/M/2014 4 !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ) ( ) / THE CIT(A)- 4. ) / CIT 5. *+ ,%%-. , -.! , / DR, ITAT, MUMBAI 6. , /01 / GUARD FILE. / BY ORDER, *% //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI