ASSISTANT COMMISSIONER OF INCOME TAX 16(2) MUMBAI, MUMBAI V. KANGA & COMPANY , MUMBAI

ITA 999/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9114 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2014-2015
• Appeal Filed On: 21-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , H BENCH MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO. 999/MUM/2018 FOR ASSESSMENT YEARS: 2014-15 ACIT)-16(2), ROOM NO. 440, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020. VS M/S KANGA & COMPANY, READY MONEY MANSION, 1 ST FLOOR, 43, VEER NARIMAN ROAD, FORT, MUMBAI- 400023. PAN : AAAFK9525E (APPELLANT/REVENUE) (RESPONDENT/ASSESSEE) ASSESSEE BY : SHRI JITENDRA JAIN, ADVOC ATE WITH SHRI BHARAT D. DAMODAR (AR) RESPONDENT BY : SHRI S. MICHAEL JERALD (DR) DATE OF HEARING : 19/09/2019 DATE OF PRONOUNCEMENT: 19/09/2019 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS APPEAL BY REVENUE UNDER SECTION 253 OF INCOME TAX ACT IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-5 , [CIT(A)], MUMBAI DATED 22.12.2017 FOR ASSESSMENT YEAR 2014-15. 2. AT THE OUTSET OF HEARING, THE LD. AUTHORIZED REPRES ENTATIVE (AR) OF THE ASSESSEE SUBMITS THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEALS IS ONLY OF RS. 24,17,869/- WHICH IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY CBDT IN ITS CIRCULAR NO.17/2019 DATED 8 TH AUGUST 2019, THEREFORE, THE APPEAL IS LIABLE TO BE DISMISSED. THE LD. AR FURTHER SUBMITS THAT EVEN THE GROUND OF APPEAL RAISED BY REVENUE IS COVERED IN FAVOUR OF ASSESSEE BY THE ORDER OF TRIBU NAL FOR A.Y. 1989-90 IN ITA NO. 9170/BOM/1992 DATED 23.04.2007, A.Y. 1993-94 IN IT A NO. 1253/MUM/2014 DATED 08.04.2007, A.Y. 2006-07 IN ITA NO. 193/MUM/2 010 DATED 08.04.2011, A.Y. 2007-08 IN ITA NO. 1042/MUM/2011 DATED 18.06.2 013, A.Y. 2008-09 IN ITA NO. 3510/MUM/2012 DATED 14.06.2013 AND A.Y. 2009-10 IN ITA NO. ITA NO. 999 MUM 2018-M/S KANGA & COMPANY 2 6088/MUM/2012 DATED 18.12.2013 AND DECISION OF HON BLE JURISDICTIONAL HIGH COURT IN A.Y. 2001-02, 2008-09 & 2009-10 DATED 19.0 6.2009, 01.02.2016 & 0- 1.02.2017 IN ITA NO. 860 OF 2009, ITA NO. 2277 OF 2 013 & ITA NO. 1422 OF 2014 RESPECTIVELY. 3. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESENTAT IVE (DR) FOR THE REVENUE AFTER GOING THROUGH THE GROUNDS OF APPEAL FAIRLY SUBMITS THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEALS IS LESS THAN THE MONETARY LIMIT OF TAX EFFECT FIXED BY CBDT CIRCULAR. 4. CONSIDERING THE SUBMISSIONS OF BOTH THE LD. REPRESE NTATIVES OF THE PARTIES, WE FIND THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS L ESS THAN THE MONETARY LIMIT OF RS. 50,00,000/- FIXED BY CBDT CIRCULAR NO. 17/2019 DATE D 8TH AUGUST 2019, THEREFORE, THE APPEAL OF REVENUE IS DISMISSED. EVEN ON MERIT, WE HAVE SEEN THAT THE LD. CIT(A) WHILE GRANTING RELIEF TO THE ASSESSEE FOLLOW ED THE ORDER OF HONBLE BOMBAY HIGH COURT IN ITA NO. 860 OF 2009 IN CIT VS. M/S KA NGA & COMPANY A.Y. 2001- 02. THEREFORE, THE APPEAL OF REVENUE IS DISMISSED D UE TO TAX EFFECT AS WELL AS THE SAME IS COVERED BY THE DECISION OF HONBLE HIGH COU RT WHEREIN PAYMENT TO EX- PARTNER WAS ALLOWED AS ALLOWABLE EXPENDITURE UNDER SECTION 37 OF THE ACT. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT O N THIS 19/09/2019. SD/- S D/- (MANOJ KUMAR AGGARWAL) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 19.09.2019 SK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT ITA NO. 999 MUM 2018-M/S KANGA & COMPANY 3 4. CIT(APPEALS) 5. DR: ITAT BY ORDER ASSISTANT REGISTRAR IT AT MUMBAI