ACIT 10(1), MUMBAI V. STANDARD TIN WORKS P. LTD, MUMBAI

ITA 8574/MUM/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4022 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 04-08-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 19-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A DHYANI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUM BAI BEFORE SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM ./ I.T.A. NO.8574/MUM/2011 ( / ASSESSMENT YEAR: 2003-04) THE A.C.I.T.-10(1), 455, AAYAKAR BHAVAN, 4 TH FLOOR, M.K. MARG, MUMBAI-400 020. / VS. M/S STANDARD TIN WORKS PVT. LTD. STANDARD HOUSE, DSOUZA COMPOUND, NEAR SAFED POOL, OFF KURLA ANDHERI ROAD, KURLA MUMBAI-400 072. ./ ./PAN/GIR NO. AAECS 1544E ( /APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI R.A. DHYANI / RESPONDENT BY : NONE / DATE OF HEARING : 02/02/2016 !'# / DATE OF PRONOUNCEMENT : 02/02/2016 $% / O R D E R PER RAJESH KUMAR, A. M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 29.09.2011 OF COMMISSIONER OF INCOME TAX (APPEALS)-21, MUMBAI (HE REINAFTER CALLED AS THE CIT(A) ) FOR ASSESSMENT YEAR 2003-04. THE REVENUE H AS RAISED FOLLOWING GROUNDS OF APPEAL: 2 ITA NO.8574/MUM/2011 A.C.I.T VS. M/S STANDARD TIN WORKS PVT. LTD. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.21,08,0 28/- ON ACCOUNT OF MODVAT ON CLOSING STOCK IGNORING THAT IN THE FINANCIAL STA TEMENT CLOSING VALUE OF RAW MATERIAL COMPONENTS, COMPOUNDS AND PROCESS MATERIAL S ARE VALUED AT COST NET OF MODVAT, WHICH MEANS THAT THE ASSESSEE WAS RE QUIRED TO VALUE THE CLOSING STOCK OF RAW MATERIAL, COMPONENTS AND PROCE SS MATERIAL INCLUDING MODVAT. 2. AT THE OUTSET THE LD. AR OF THE ASSESSEE POINTED OUT THAT THE TAX EFFECT IN THIS APPEAL IS BELOW RS.10.00 LAKHS AND FURTHER SUBMITTE D 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 MAINTAINABLE AND BE DISMISSED. T HE LD. DR ALSO AGREED TO THE SUBMISSION OF THE LD. AR. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND FROM THE RECORDS BEFORE US THAT THE TAX INV OLVED IN THE DISPUTED ISSUE IS BELOW RS.10 LACS AND THEREFORE, IN VIEW OF THE CIRC ULAR NO 21/2015 DATED 10 TH DECEMBER, 2015 NO APPEALS SHOULD BE FILED BY THE RE VENUE 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. 3 ITA NO.8574/MUM/2011 A.C.I.T VS. M/S STANDARD TIN WORKS PVT. LTD. THE RELEVANT EXTRACT THE SAID CBDT CIRCULAR (SUPRA) IS AS UNDER:- THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PEN DING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDI NG APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRA WN/NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE IN STRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 4. CONSIDERING THE ABOVE, THE APPEAL FILED BY THE R EVENUE, IS THEREFORE DISMISSED. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2ND FEBRUAR Y, 2016 SD/- SD/- (C.N. PRASAD) (RAJESH KUMAR) &' $ / JUDICIAL MEMBER $ / ACCOUNTANT MEMBER ( ) MUMBAI; *$ DATED :02.02.2016 PS. ASHWINI 4 ITA NO.8574/MUM/2011 A.C.I.T VS. M/S STANDARD TIN WORKS PVT. LTD. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT - CONCERNED 5. ./0 ''12 , 12# , ( ) / DR, ITAT, MUMBAI 6. 045 6 / GUARD FILE / BY ORDER, / !'# (DY./ASSTT. REGISTRAR) #$ %, ( ) / ITAT, MUMBAI.