THE DY DIT (IT)2(1), V. M/S. RAYMOND LATD,

ITA 955/MUM/2005

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4501 (ITAT-MUMBAI)
• Duration Of Justice: 10 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: L
• Next Hearing Date: 03-03-2015
• Assessment Year: misc
• Appeal Filed On: 04-02-2005
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK PERAMPURAM
• Keywords: Assessment record; Tax effect
• Section: 201(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH, MUMBAI BEFORE SHRI N.K . BILLAIYA, ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, JUDICIAL MEMBER / I .T A NO. 955/MUM/205 THE DDIT (IT) - 2(1), SCINDIA HOUSE, N.M. ROAD, BALLARD ESTATE, MUMBAI - 400 038 / VS. M/S. RAYMOND LTD., NEW HIND HOUSE, N.M. MARG, BALLARD ESTATE, MUMBAI - 400 001 ./ ./ PAN/GIR NO. AAACR 4896A ( / APPELLANT ) .. ( / RESPONDENT ) / A PPELLANT BY: SHRI VIVEK PERAMPURAM / RESPONDENT BY: SHRI NITESH JOSHI / DATE OF HEARING : 11 . 01 . 201 6 / DATE OF PRONOUNCEMENT : 11 . 0 1 .201 6 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A) - 3 1 , MUMBAI DATED 15 .1 0 .20 04 PERTAINING TO THE DEMAND IN PURSUANCE TO THE ORDERS MADE U/S. 201(1) AND 201(1A) OF THE ACT . 2. THE GRIEVANCE OF THE REVENUE READS AS UNDER: ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE & IN LAW, THE LD. CIT(A) ERRED IN HOLDING THAT THE PAYMENT MADE BY THE ASSESSEE TO THE NON - RESIDENT SHIP OWNERS FOR VOYAGE CHARTER CANNOT BE CO NSIDERED AS ROYALTY AS ENVISAGED IN ITA. NO. 955/M/2005 2 CLAUSE (IVA) OF EXPLANATION 2 TO SEC 9(1) OF THE I.T. ACT 1961. 3. A PERUSAL OF THE ASSESSMENT RECORD SHOWS THAT THE TAX FOR DEFAULT U/S. 201(1) AND INTEREST U/S. 201(1A) OF THE ACT HAS BEEN COMPUTED AS UNDER: TAX FOR DEFAULT U/S./ 201(1) DATE PAYMENT MADE RATE OF TAX TAX AMOUNT SURCHARGE TOTALL TAX + SURCHARGE TAX DEDUCTED SHORTFALL 27.5.13 758929 @20% + 5% 151786 7589 159375 NIL 159375 23.6.03 1098563 @20%+ SURCHARGE 219713 10986 230699 NIL 230699 INTEREST U/S. 201(1A) DATE OF PAYMENT PERIOD OF DEFAULT INTEREST U/S. 201(1A) @ 15% P.A. 27.5.03 9 MONTHS 17,930 23.6.03 8 MONTHS 23,070 41,000 41,000 TOTAL TAX DEMAND 3,90,074 + 41,000 4,31,074 4. THE AFOREMENTIONED DETERMINATION OF LIABILITY FOR TAX AND INTEREST IS SQUARELY COVERED BY THE CIRCULAR NO. 21 /2015 OF THE CBDT DATED 10/12/2015, THE RELEVANT PORTION OF WHICH READ AS UNDER: - CIRCULAR NO. 21/2015 F NO 279/MISC. 142/2007 - ITJ (PT) ITA. NO. 955/M/2005 3 GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES NEW DELHI THE 10TH DECEMBER, 2015 SUBJECT: REVISION OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT - MEASURES FOR REDUCING LITIGATION - REG REFERENCE IS INVITED TO BOARD'S INSTRUCTION NO 5/2014 DATED 10.07.2014 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR FILING DEPARTMENTAL APPEALS (IN INCOME - TAX MATTERS) BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE INSTRUCTION, IT HAS BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT KEEPING IN VIEW THE MONETARY LIMITS AND C ONDITIONS SPECIFIED BELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: - S. NO APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1. BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2. BEFORE HIGH COURT 20,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. ITA. NO. 955/M/2005 4 5. FOLLOWING THE AFOREMENTIONED CIRCULAR OF THE BOARD, THIS APPEAL BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 11 TH JANUARY , 201 6 . SD/ - SD/ - ( C.N. PRASAD ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 11 TH JANUARY , 201 6 . . ./ RJ , 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 . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI