ITO 7(1)1, V. NANDKISHORE FINVEST P.LTD,

MA 397/MUM/2014

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 2693 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 20-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'SMC' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER MA NO. 397/MUM/2014 (ARISING OUT OF ITA NO. 2339/MUM/2014) (ASSESSMENT YEAR: 2006-07) INCOME TAX OFFICER 7(1)-1 VS. M/S. NANDKISHORE FINVEST P. LTD. ROOM NO. 623, 6TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 112,ASHIRWAD, AHMEDABAD STREET CARNAC BUNDER, MUMBAI 400009 PAN - AAACN2245D APPLICANT RESPONDENT APPLICANT BY: SHRI NEIL PHILIP RESPONDENT BY: NONE DATE OF HEARING: 16.01.2015 DATE OF PRONOUNCEMENT: 16.01.2015 O R D E R PER D. MANMOHAN, V.P. BY THIS MISCELLANEOUS APPLICATION THE REVENUE SEEKS RECALL OF THE ORDER DATED 03.06.2014 ON THE GROUND THAT WHILE CONSIDERI NG THE FACTS THE NOTIONAL TAX EFFECT ON THE AMOUNT DISALLOWED SHOULD BE TAKEN INTO CONSIDERATION AND THUS THE ORDER PASSED BY THE TRIB UNAL GIVES RISE TO A MISTAKE APPARENT ON RECORD. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. WE HAVE HE ARD THE LEARNED D.R. ADMITTEDLY THE ASSESSMENT ORDER SHOWS THAT THE ASSESSEE FILED RETURN OF INCOME DISCLOSING TOTAL INCOME OF ` 450/- AND EVEN AS PER THE AO THE SHORT TERM GAINS ARE TO THE TUNE OF ` 450/-. HOWEVER, OUT OF ` 68,40,844/- DECLARED AS LOSS BY THE ASSESSEE THE AO DISALLOWED SPECULATI ON LOSS PRIOR TO 25.01.2006 TO THE TUNE OF ` 60,33,208/-. THE NET EFFECT IS THAT THERE IS NO TAXABLE INCOME IN THIS YEAR. IT IS NOT IN DISPUTE T HAT AS PER CIRCULAR NO. 3 OF 2011 ISSUED ON 09.02.2011 WHEN THE TAX EFFECT IS LE SS THAN ` 3,00,000/- IT IS FOR THE COMMISSIONER, WHO HAS TO GRANT AUTHORISATIO N, TO SHOW THE MA NO. 397/MUM/2014 M/S. NANDKISHORE FINVEST P. LTD. 2 EXCEPTIONAL CIRCUMSTANCES FOR FILING AN APPEAL. AT THE TIME OF HEARING THE LEARNED D.R. COULD NOT PLACE ANY SUCH MATERIAL BEFO RE US DESPITE MAKING A MENTION IN THE MISCELLANEOUS APPLICATION THAT IT WA S SPECIFICALLY MENTIONED IN THE AUTHORISATION. IT DESERVES TO BE NOTED THAT THE AUTHORISATION MEMO HAS NO MENTION ABOUT THE CIRCULAR ISSUED BY THE CBD T OR THE EXCEPTIONAL CIRCUMSTANCES UNDER WHICH THE APPEAL HAS TO BE FILE D DESPITE THE FACT THAT THERE IS NIL TAX EFFECT IN THIS YEAR. 3. HAVING REGARD TO THE CIRCUMSTANCES WE ARE OF THE VI EW THAT THE ORDER PASSED BY THE ITAT DOES NOT SUFFER FROM ANY MISTAKE APPARENT ON RECORD. THEREFORE, THE MISCELLANEOUS APPLICATION FILED BY T HE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH JANUARY, 2015. SD/- SD/- (N.K. BILLAIYA) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATED: 16 TH JANUARY, 2015 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 13, MUMBAI 4. THE CIT 7, MUMBAI CITY 5. THE DR, SMC BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.