DCIT CENT. CIR-7(3), MUMBAI V. M/S.PADMAVATI TOWNSHIP PRIVATE LIMITED, MUMBAI

MA 122/MUM/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7472 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 25-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Keywords: Tax effect; TDS
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C MUMBAI BEFORE SHRI C.N. PRASAD (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) M.A. NO. 122/MUM/2019 (ITA NO. 2144/MUM/2018) ASSESSMENT YEAR: 2012 - 13 DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 7(3), ROOM NO. 655, 6 TH FLOOR AAYAKARBHAVAN,M.K. ROAD, MUMBAI - 400020. VS. M/S PADMAVATI TOWNSHIP PVT. LTD. 412, 71 - G, VARDHAMAN CHAMBERS C.P. ROAD, HORNIMAN CIRCLE, FORT, MUMBAI. PAN NO. AAFCM7826P APPELLANT RESPONDENT REVENUE BY : MR. CHAITANYA ANJARIA, DR ASSESSEE BY : NONE DATE OF HEARING : 26/04/2019 DATE OF PRONOUNCEMENT : 23/07/2019 ORDER PER N.K. PRADHAN, AM BY MEANS OF THIS MISCELLANEOUS APPLICATION (MA), THE APPLICANT SEEKS RECALL OF THE ORDER DATED 24.08.2018 PASSED BY THE ITAT H BENCH MUMBAI (ITA NO. 2144/MUM/2018 ) FOR THE ASSESSMENT YEAR (AY) 2012 - 13. 2. THE LD. DEPARTMENTAL REPRESENTATIVE (DR) SUBMITS THAT THE ITAT HAS DISMISSED THE R EVENUES APPEAL ON THE GROUND THAT THE TAX EFFECT IS BELOW THE PRESCRIBED MONETARY LIMIT OF RS.20,00,000/ - AS PER CBDT CIRCULAR NO. 3/2018 DATED 11.07. 2018 WHICH IS NOT CORRECT AS THE TAX M/S PADMAVATI TOWNSHIP MA NO. 122/MUM/2019 2 EFFECT HEREIN IS RS.1,24,14,894/ - . IT IS STATED THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE HAS PAID INTEREST OF RS.4,13,82,982/ - ON WHICH TDS HAS NOT BEEN MAD E. THE ASSESSEE HAS CAPITALIZED THIS INTEREST. IT IS STATED THAT AS THE ASSESSEE HAD INCREASED THE OPENING STOCK BY RS.4,13,82,982/ - , THE AO REDUCED THE CLOSING STOCK TO THAT EXTENT I.E. BY RS.4,13,82,982/ - . IT IS STATED THAT THE LD. CIT(A) ALLOWED THE APP EAL OF THE ASSESSEE RELYING ON THE DECISION OF THE ITAT IN THE CASE OF M/S VARDHVINAYAK TOWNSHIP DEVELOPMENT PVT. LTD. FOR AY 2012 - 13. THE LD. DR SUBMITS THAT THE REVENUE HAS FILED AN APPEAL BEFORE THE HONBLE HIGH COURT AGAINST THE ORDER OF THE TRIBUNAL IN THE CASE OF M/S VARDHVINAYAK TOWNSHIP DEVELOPMENT PVT. LTD. THUS IT IS SUBMITTED THAT THE TRIBUNAL MAY CONSIDER ADMITTING THIS MA. 3. NONE APPEARED ON BEHALF OF THE A SSESSEE. 4. WE HAVE HEARD THE LD. DR AND PERUSED THE RELEVANT MATERIALS ON RECORD. IN THE INSTANT CASE THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 30.09.2012 DECLARING LOSS OF RS.28,390/ - . THE AO COMPLETED THE ASSESSMENT U/ S 143(3) ON 26.02.2015 ON THE ABOVE LOSS OF RS.28,390/ - . IN THE CIRCULAR NO. 3/2018 DATED 11.07.2018 ISSUED BY CBDT THE TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TO TAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES M/S PADMAVATI TOWNSHIP MA NO. 122/MUM/2019 3 AGAINST WHICH APPEAL IS INTENDED TO BE FILED. AS MENTIONED ABOVE THERE IS NO ADDITION/DISALLOWANCE MADE BY THE AO TO THE LOSS OF RS.28,390/ - SHOWN BY THE ASSESSEE IN ITS RETURN OF INC OME. THEREFORE, THE TAX EFFECT IN THE INSTANT CASE DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - FOR APPEALS TO BE FILED BEFORE THE APPELLATE TRIBUNAL. 5. THUS THE MA, BEING DEVOID OF MERIT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23/07/ 2019. SD/ - SD/ - (C.N. PRASAD) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 23/07/2019 RAHUL SHARMA, SR. P.S. 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