ITO 8(3)(2), MUMBAI V. SINDOORI TRADERS P.LTD, MUMBAI

ITA 8113/MUM/2011

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2542 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2016
• Appeal Filed By: Department
• Bench Allotted: E
• Next Hearing Date: 07-04-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 02-12-2011
• Court: TRIBUNAL
• Department Lawyers: NITIN R WAGHMODE
• Assessee Lawyers: RAKESH MILWANI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER I.T.A. NO. 8113/M/2011 (ASSESSMENT YEAR: 2001 - 2002 ) I.T.A. NO. 8114 /M/2011 (ASSESSMENT YEAR: 2002 - 2003 ) I.T.A. NO. 8115 /M/2011 (ASSESSMENT YEAR: 2005 - 2006 ) I.T.A. NO. 7608 /M/2011 (ASSESSMENT YEAR: 2006 - 2007 ) I.T.A. NO. 5039/M/2014 (ASSESSMENT YEAR: 2004 - 2005 ) ACIT - 8(3), MUMBAI. / VS. SINDOORI TRADERS PRIVATE LIMITED, 301 - A, SOLARIS I, SAKI VIHAR ROAD, ANDHERI (W), MUMBAI 400 072. ./ PAN : AAACS6166Q ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI NITIN R. WAGHMODE , DR / RESPONDENT BY : SHRI RAKESH MILWANI / DATE OF HEARING : 27 .10.2016 / DATE OF PRONOUNCEMENT : 27 .10.2016 / O R D E R PER BENCH : THERE ARE FIVE APPEALS UNDER CONSIDERATION INVOLVING THE ASSESSMENT YEARS 2000 - 01 TO 2005 - 06. ALL THESE APPEALS ARE FILED BY THE REVENUE AGAINST THE DIFFERENT ORDERS OF THE CIT (A) - 18, MUMBAI. THE COMMON ISSUE RAISED IN THESE APPEALS RELATES TO THE DECISION OF THE CIT (A) IN D IRECTING THE AO TO ALLOW DEDUCTION OF INTEREST U/S 24(B) OF THE ACT. SINCE, THE ABOVE ISSUE RAISED IN ALL THESE APPEALS IS IDENTICAL AND THE ONLY DIFFERENCE IS IN FIGURES, THEREFORE, FOR THE SAKE OF CONVENIENCE, THEY ARE CLUBBED HEARD COMBINEDLY AND DISPO SED OFF IN THIS CONSOLIDATED ORDER. APPEAL WISE ADJUDICATION IS GIVEN IN TH E FOLLOWING PARAS OF THIS ORDER . 2. BEFORE US, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE GROUNDS RAISED IN THESE APPEAL WHICH REVOLVE AROUND THE ONLY ISSUE RELATING TO THE ALLOWABILITY OF DEDUCTION OF INTEREST U/S 24(B) OF THE ACT AND DEMONSTRATED THAT TOTAL TAX EFFECT IN 2 THESE CASES IS BELOW RS. 10 LAKHS. IN THIS REGARD, LD COUNSEL FOR THE ASSESSEE ALSO FILED A WORKING SHOWING THE TAX EFFECT OF THE INSTANT APPEALS. THEREFORE, IT IS THE SUBMISSION OF THE LD COUNSEL THAT CONSIDERING THE LOW TAX EFFECT, THE CBDT CIRCULAR NO.21/2015 APPLIES TO THE INSTANT APPEALS. 3. AFTER HEARING THE LD DR FOR THE REVENUE AND ON PERUSAL OF THE ORDERS OF THE REVENUE AUTHORITIE S AS WELL AS THE RELEVANT MATERIAL PLACED BEFORE US, WE FIND, THE TAX EFFECT IN THIS CASE IS BELOW RS. 10 LAKHS. THEREFORE, THIS CASE IS COVERED BY THE CBDT CIRCULAR NO.21/2015, DATED 10.12.2015 WHICH IS RELEVANT FOR THE PROPOSITION THAT THE APPEALS FILED BY THE REVENUE WITH A TAX EFFECT OF RS. 10 LAKHS AND BELOW ARE TO BE EITHER DISMISSED BY THE TRIBUNAL AS NOT MAINTAINABLE OR NOT PRESSED BY THE REVENUE. CONSIDERING THE SAME, THE PRESENT APPEAL FILED BY THE REVENUE IS REQUIRED TO BE DISMISSED SINCE, THE SAME IS NOT MAINTAINABLE. WE ORDER ACCORDINGLY. 4. IN THE RESULT, A L L T H E F I V E APPEAL S FILED BY THE REVENUE A R E DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH OCTOBER, 2016. S D / - S D / - ( AMARJIT SINGH ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 27.10 .2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// 3 / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI