ACIT 4(2)(1), MUMBAI V. NIRMAL BANG SECURITIES P.LTD, MUMBAI

ITA 766/MUM/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5150 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 03-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADMA RAM LD
• Assessee Lawyers: ANANT N PAI LD
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

NIRMAL BANG SECURITIES PRIVATE LIMITED. ASSESSMENT YEAR-2013-14 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.766/MUM/2017 ( / ASSESSMENT YEAR: 2013-14) ASSISTANT COMMISSIONER OF INCOME TAX-4(2)(1) ROOM NO.642, 6 TH FLOOR AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 020 / VS. NIRMAL BANG SECURITIES PVT. LTD. 38-B, KHATAU BUILDING 2 ND FLOOR ALKESH DINESH MODI MARG FORT,MUMBAI-400 023 ./ ./PAN/GIR NO. AAACN-7369-L ( /APPELLANT ) : ( ! / RESPONDENT ) & ./I.T.A. NO.776/MUM/2017 ( / ASSESSMENT YEAR: 2013-14) N IRMAL BANG SECURITIES PVT. LTD. 38-B, KHATAU BUILDING 2 ND FLOOR ALKESH DINESH MODI MARG FORT,MUMBAI-400 023 / VS. DEPUTY COMMISSIONER OF INCOME TAX-4(2)(1) MUMBAI-400 020 ./ ./PAN/GIR NO. AAACN-7369-L ( /APPELLANT ) : ( ! / RESPONDENT ) ASSESSEE BY : ANANT N. PAI, LD. AR REVENUE BY : PADMA RAM. LD. DR / DATE OF HEARING : 11/10/2018 / DATE OF PRONOUNCEMENT : 24/ 1 0/2018 / O R D E R NIRMAL BANG SECURITIES PRIVATE LIMITED. ASSESSMENT YEAR-2013-14 2 PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THESE ARE CROSS APPEALS FOR AY 2013-14 WHICH CON TEST ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-9 [CIT(A)], MU MBAI, APPEAL NO.CIT(A)-9/CIR.4/392/2015-16 DATED 07/11/2016 ON DIFFERENT GROUNDS OF APPEAL. 2. THE ASSESSEE BEING RESIDENT CORPORATE ENTITY HAS BEEN ASSESSED U/S 143(3) ON 20/10/2015 AT RS.910.95 LACS AFTER CE RTAIN DISALLOWANCE AS AGAINST RETURNED INCOME OF RS.103.30 LACS E-FILED BY THE ASSESSEE ON 30/09/2013. THE FIRST APPELLATE AUTHORITY, UPON FUR THER APPEAL, HAS PROVIDED CERTAIN RELIEF TO THE ASSESSEE. AGAINST TH E SAME THE REVENUE IS UNDER APPEAL BEFORE US. THE PERUSAL OF GROUNDS OF A PPEAL REVEALS THAT THE REVENUE IS UNDER APPEAL AGAINST AGGREGATE RELIE F OF RS.34.69 LACS [RS.22.27 LACS + RS.12.18 LACS + RS.0.22 LACS] AS P ROVIDED BY LD. CIT(A). 3. THE LD. AUHTORIZED REPRESENTATIVE FOR ASSESSEE [ AR], SHRI ANANT N.PAI, AT THE OUTSET, SUBMITTED THAT THE REVENUES APPEAL IS NOT MAINTAINABLE IN VIEW OF THE RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.03/2018 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THE WORKING OF THE TAX EFFECT HAS BEEN PLACED ON RE CORD. AFTER PERUSAL OF THE SAME, WE FIND THAT THE TAX EFFECT OF THE QUANTUM ADDITIONS AS CONTESTED BY THE REVENUE IS LESS THAN PRESCRIBED LIMIT OF RS.20 LACS AND THE SAME IS COVERED BY RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.03/2018 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THE LD. DR, SHRI PADMA RAM, HAS CONTROVERTED THE SAME BY NIRMAL BANG SECURITIES PRIVATE LIMITED. ASSESSMENT YEAR-2013-14 3 SUBMITTING THAT NECESSARY INSTRUCTIONS / CERTIFICAT E, IN THIS REGARD, WOULD BE REQUIRED FROM HIGHER AUTHORITIES. 4. WE HAVE GONE THROUGH THE CIRCULAR AND FIND THAT THE TAX EFFECT OF QUANTUM IN DISPUTE IS BELOW PRESCRIBED LIMIT OF RS. 20 LACS AND THE ASSESSEE STOOD BENEFITTED BY THE ABOVE CIRCULAR ISS UED BY CBDT WHEREIN THE MINIMUM MONETARY LIMIT FOR FILING THE A PPEALS BEFORE VARIOUS APPELLATE AUTHORITIES HAVE BEEN FIXED AS UNDER:- S. NO. APPEALS/ SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 20.00,000 2 BEFORE HIGH COURT 50.00,000 3 BEFORE SUPREME COURT 1,00.00,000 THE AFORESAID LIMITS, AS PER PARA 13 OF THE CIRCULAR APPLIES TO PENDING APPEALS ALSO. IN VIEW OF THE ADMITTED POSITION, WE DISMISS THE REVENUES APPEAL. 5. SO FAR AS THE CONTENTIONS RAISED BY LD. DR IS CO NCERNED, WE FIND THAT AFORESAID CIRCULAR DOES NOT ENVISAGE OBTAINING OF ANY CERTIFICATE FROM ANY AUTHORITIES, IN ANY MANNER. NEVERTHELESS, THE R EVENUE IS FREE TO MOVE APPROPRIATE APPLICATION TO RECALL THIS ORDER, IF AT A LATER STAGE, IT IS FOUND THAT THE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN THE AFORESAID CIRCULAR OR IN CASE THE TAX EFFECT OF THE QUANTUM ADDITIONS AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. 6. THE LD. AR HAS FURTHER SUBMITTED THAT IN VIEW OF DISMISSAL OF REVENUES APPEAL AS AFORESAID, THE ASSESSEE IS NOT INTERESTED TO PURSUE THE ISSUES RAISED IN HIS APPEAL DUE TO SMALLNESS OF THE AMOUNTS. IN VIEW OF THE SAID SUBMISSION, THE ASSESSEES APPEAL STAND S DISMISSED IN LIMINE. NIRMAL BANG SECURITIES PRIVATE LIMITED. ASSESSMENT YEAR-2013-14 4 7. BOTH THE APPEALS STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH OCTOBER, 2018. SD/- SD/- (MAHAVIR SINGH) (MANOJ K UMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED :24/10/208 SR.PS:-THIRUMALESH/JV, SR.PS ! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT 3. ( ( ) / THE CIT(A) 4. ( / CIT CONCERNED 5. )* # + , + , / DR, ITAT, MUMBAI 6. *,-. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.