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

ITA 768/MUM/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5149 (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: 2012-2013
• 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 COMMODITIES PVT.LTD. ASSESSMENT YEAR-2012-13 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.768/MUM/2017 ( / ASSESSMENT YEAR: 2012-13) 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 COMMODITIES PRIVATE LIMITED 19, SONALWALA BUILDING 25 BANK STREET, FORT MUMBAI-400 023 ./ ./PAN/GIR NO. AAACE-1479-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 : 24/10/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY] 2012-13 CONTEST ORDER OF FIRST APPELLATE AUTHORITY DATED 07 /11/2016 ON VARIOUS GROUNDS OF APPEAL. 2. THE ASSESSEE BEING RESIDENT CORPORATE ENTITY HAS BEEN ASSESSED U/S 143(3) ON 07/11/2014 AT LOSS OF RS.134.78 LACS AFTER CERTAIN NIRMAL BANG COMMODITIES PVT.LTD. ASSESSMENT YEAR-2012-13 2 DISALLOWANCE AS AGAINST RETURNED LOSS OF RS.298.44 LACS E-FILED BY THE ASSESSEE ON 09/01/2013. THE FIRST APPELLATE AUTHORI TY, UPON FURTHER APPEAL, HAS PROVIDED CERTAIN RELIEF TO THE ASSESSEE , AGAINST WHICH THE REVENUE IS UNDER APPEAL BEFORE US WITH VARIOUS GROU NDS OF APPEAL. 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, PRIMA FACIE, IT APPEARS THAT THE TAX EFFECT OF THE QUANTUM ADDITIONS AS CONTESTED BY THE REVENUE IS LE SS THAN PRESCRIBED LIMIT OF RS.20 LACS AND THE SAME IS COVERED BY RECE NTLY 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 SUBMITTING THAT NECESSARY INSTRUCTIONS / CERTIFICATE, 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 NIRMAL BANG COMMODITIES PVT.LTD. ASSESSMENT YEAR-2012-13 3 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. RESULTANTLY, THE APPEAL 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 : 24/0/2018 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.