DCIT (LTU)-2, Mumbai V. M/S GLENMARK PHARMACEUTICALS LTD., Mumbai

MA 160/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7895 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 18-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

MA NO 160/MUM/2020 IN ITA NO.4659/MUM/2019 ASSESSMENT YEAR: 2006 - 07 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI 'D' BENCH, MUMBAI [CORAM: JUSTICE P.P. BHATT (PRESIDENT), AND PRAMOD KUMAR (VICE PRESIDENT)] MA NO 160/MUM/2020 IN ITA NO.4659/MUM/2019 ASSESSMENT YEAR: 2006 - 07 DEPUTY COMMISSIONER OF INCOME TAX, LTU - 2 .APPLICANT MUMBAI. VS. M/S. GLENMARK PHARMACEUTICALS LTD., RESPONDENT GLENMARK HOUSE, HIDO - CORPORATE BUILDING, B D SAWANT MARG, CHAKALA, WESTERN EXPRESS HIGHWAY, ANDHERI (E), MUMBAI 400099 [PAN: AAACG2207L] APPEARANCES BY SUNIL DESHPANDE FOR THE APPLICANT ANUJ KISNADWALA FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING: : JULY 13, 2021 DATE OF PRONOUNCEMENT OF ORDER : SEPTEMBER 02 , 2021 ORDER PER BENCH: 1. BY WAY OF THIS MISCELLANEOUS APPLICATION, THE ASSESSING OFFICER SEEKS THE RECALL OF OUR ORDER DATED 21.08.2019 DISMISSING THE APPEAL AN ACCOUNT OF LOW TAX EFFECT UNDER CBDT CIRCULAR 17/2019 DATED 08.08.2019. 2. A SHORT POINT ON WHICH THE ORDER IT SOUGHT TO BE RECALLED IS ASSESSING OFFICER RELIANCE ON CIRCULAR NO. 23/2019 DATED 06.09.2019. AS IS EVIDENT FROM THE FOLLOWING OBSERVATIONS IN THE PRESENT MISCELLANEOUS APPLICATION: - THE HON'BLE ITAT DISMISSED THE APPEAL OF THE REVENUE AS WITHDRAWN/NOT PRESSED AS THE TAX EFFECT IN DISPUTE IN THE APPEAL WAS BELOW THE REVISED MONETARY LIMIT OF RS. 50 LAKHS SPECIFIED IN CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 AND REVISED CIRCULAR NO. 17/2019, DATED 08.08.2019. HOWEVER, IN PARA 5 OF THE ORDER, THE HON'BLE ITAT CLARIFIED THAT IF ON A LATER DATE, REVENUE FOUND THAT THE TAX EFFECT IN DISPUTE IN THE MA NO 160/MUM/2020 IN ITA NO.4659/MUM/2019 ASSESSMENT YEAR: 2006 - 07 PAGE 2 OF 3 MENTIONED APPEAL WAS MORE THAN THE LIMIT PRESCRIBED IN THE ABOVE MENTIONED CIRCULAR, REVENUE SHALL B E AT LIBERTY TO APPROACH THE TRIBUNAL FOR RECALL .OF THE ORDER AND REINSTITUTION OF THE APPEAL FOR ADJUDICATION ON MERIT. THE TRIBUNAL SHALL CONSIDER SUCH APPLICATION, IF ANY, AS PER THE EXTANT LAW. . AFTER EXAMINING THE RECORDS AVAILABLE WITH THE OFFICE OF UNDERSIGNED, IT WAS FOUND THAT THE TAX EFFECT INVOLVED IN THIS APPEAL WAS LESS THAN THE THRESHOLD LIMIT OF RS, 50 LAKHS AS. PROVIDED IN 3/2018 DATED 11TH JULY, 2018 AND REVISED CIRCULAR NO. 17/2019, DATED 08.08.2019, HOWEVER, THE PROCEEDINGS U/S. 147/14 8 WERE INITIATED ON THE BASIS OF AUDIT OBJECTION. IT IS THEREFORE PRESUMED THAT THE AUDIT OBJECTION IS ACCEPTED. ACCORDINGLY, THE INSTANT APPEAL IS COVERED BY THE EXCEPTIONS STIPULATED IN PARA W(C) OF CBDT CIRCULAR 3/2018 DATED 11.07.2018(LATER MODIFIED 20 .08.2018). IN THE VIEW OF THE ABOVE, THE OFFICE OF UNDERSIGNED HEREIN PRAY THAT HONBLE ITAT RECALL ITS ORDER IN ITA NO. 4659/MUM/2019 DATED 21.08.2019. 3. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. 4. WHILE IT IS INDEED TRUE THAT IN TERMS OF PARA 10(C) OF RELEVANT CBDT CIRCULAR DESPITE THE MONETARY LIMITS A CASE WHERE REVENUE AUDIT OBJECTION IN THIS CASE HAS BEEN ACCEPTED BY THE DEPARTMENT THE MATTER IS REQUIRE TO BE ADJUDICATE ON MERITS. HOWEVER AS EVIDENT FROM THE EXTRACTS OF THE MISCELLANEOUS PETITION AS REPRODUCED ABOVE THERE IS NO MATERIAL TO SHOW THAT REVENUE AUDIT OBJECTION HAS BEEN ACCEPTED. EVEN ACCORDING TO THE ASSESSING OFFICER IT IS AT BEST HIS PRESUMPTION THAT THE AUDIT OBJECTION HAS ACCEPTED WHERE IS THUS NO MATERIAL TO SUBSTANTIATE FACTUAL ELEMENTS AND THAT IN THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE. WE THEREFORE, SEE NO REASONS TO INTERFERE IN THE MATTER. 5 . IN T HE RESULT, THIS MISCELLANEOUS APPLICATION IS DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 0 2 N D DAY OF SEPTEMBER , 202 1. S D / - S D / - JUSTICE P.P. BHATT PRAMOD KUMAR (PRESIDENT) (VICE PRESIDENT) MUMBAI, DATED THE 0 2 N D SEPTEMBER , 2021 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE MA NO 160/MUM/2020 IN ITA NO.4659/MUM/2019 ASSESSMENT YEAR: 2006 - 07 PAGE 3 OF 3 BY ORDER TRUE COPY ASSISTANT REGISTRAR / SR. PS INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, MUMBAI