DCIT 8(2)(1), MUMBAI V. SHAMROCK PHARMACHEMI P. LTD., MUMBAI

ITA 861/MUM/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4907 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Assessment Year: 2012-2013
• Appeal Filed On: 12-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V VINOD KUMAR
• Keywords: Tax effect
• Section: 143(3); 13

Judgement Text

ITA NO. 861/MUM/2018 A.Y. 2012 - 13 DCIT - 8(2)(1) VS. M/S SHAMROCK PHARMACHEMI PVT. LD. 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G MUMBAI BEFORE SHRI MANOJ KUMAR AGARWAL (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NO. 861/MUM/2018 (ASSESSMENT YEAR: 2012 - 13) DCIT - 8(2 )( 1 ), ROOM NO. 624 , AAYAKAR BHAVAN , M.K. ROAD, MUMBAI 400 020 VS. M/S SHAMROCK PHARMACHEMI PVT. LTD., OFF DR. E MOSES ROAD, WORLI, MUMBAI - 400025 PAN NO. AAACS6290H REVENUE ASSESSEE REVENUE BY : SHRI V. VINOD KUMAR , D.R ASSESSEE BY : SHRI BHARAT GANDHI , A.R DATE OF HEARING : 15/10 /2020 DATE OF PRONOUNCEMENT : 15/ 10 /2020 ORDER PER RAVISH SOOD, JM THE PRESENT APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISS IONER OF INCOME TAX (APPEALS) - 14 , [FOR S HORT CIT(A)], MUMBAI, DATED 27.11.2017 , WHICH IN TURNS ARISES FROM THE ASSESSMENT ORDER PASSED BY THE A.O UNDER SECTION 143(3) OF THE INCOME TAX ACT 1 961, (FOR SHORT ACT), DATED 16.03 .2015. 2. CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH CO URTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. 3. CBDT VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - . FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. ITA NO. 861/MUM/2018 A.Y. 2012 - 13 DCIT - 8(2)(1) VS. M/S SHAMROCK PHARMACHEMI PVT. LD. 2 FURTHER, TAX EFFECT SHALL B E TAXES INCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST S HALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDER, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE OR DER TO BE APPEALED AGAINST. AT PARA 13 OF THE ABOVE CIRCULAR, IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PAR A 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019, DATED 08.08.2019 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. IN THE INSTANT APPEAL FIL ED BY THE DEPARTMENT, IT WAS AVERRED BY THE LD. A.R THAT THE TAX EFFECT THEREIN INVOLVED WAS BELOW THE MONETARY LIMIT OF RS.50,00,000/ - . THE SAID FACT WAS BROUGHT TO THE NOTICE OF THE LD. DEPARTMENTAL REPRESENTATIVE (FOR SHORT D.R) WHO DID NOT CONTROVE RT THE SAME. IN FACT, ON A SPECIFIC QUERY BY THE BENCH IT WAS FAIRLY ADMITTED BY THE LD. D.R THAT THE PRESENT APPEAL WAS NOT COVERED BY THE EXCEPTIONS CARVE D OUT IN THE CBDT CIRCULAR NO. 17/2019 , DATED 08.08.2019 . 6 . WITH THE ABOVE OBSERVATIONS THE APPEAL INVOLVING A TAX EFFECT OF LESS THAN RS.50,00,000/ - IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 .10.2020 SD/ - SD/ - ( MANOJ KUMAR AGARWAL) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 15 .10. 2020 ROHIT, P.S. ITA NO. 861/MUM/2018 A.Y. 2012 - 13 DCIT - 8(2)(1) VS. M/S SHAMROCK PHARMACHEMI PVT. LD. 3 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 . BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) ITAT, MUMBAI