ACIT(IT) 4(1)(1), MUMBAI V. M/S. RELIANCE JIO INFOCOMM. LTD., MUMBAI

MA 90/MUM/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 1589 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-10-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 07-07-2022
• Assessment Year: 2018-2019
• Appeal Filed On: 24-04-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect; TDS

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER & MS. KAVITHA RAJAGOAPAL, JUDICIAL MEMBER MA 90/MUM/2022 (2018-19) Arising out of I.T.A. No.5207/Mum/2019 (A.Y. 2018-19) DCIT(IT)-4(1)(1), Room No.1712, 17 th Floor, Air India Building Nariman Point, Mumbai-400021 Vs.M/s Reliance Jio Infocomm Ltd. 3 rd Floor, Maker Chamber-IV, 222, Nariman Pint, Mumbai- 400021 PAN-AABCI6363G (Appellant) (Respondent) Assessee by Shri Nimesh Vora & Ms. Moksha Mehta Department by Shri Ashish Kumar Date of Hearing 08.07.2022 Date of Pronouncement 04.10.2022 O R D E R PER KAVITHA RAJAGOPAL :- This miscellaneous application has been filed by the Revenue to recall the order of the Tribunal dated 30-05-2019 pertaining to assessment year 2018-19 in ITA No. 5207/Mum/2019. It is observed that the co-ordinate bench in ITA 5207/Mum/2019 has dismissed the appeal filed by the Revenue on the ground of low tax effect with monetary threshold of Rs. 50 lakhs as per CBDT while circular no. 3 of 2018 and amended vide circular no. 17 dated 08- 08-2019. Reliance Jio Infocomm. Ltd. MA No. 90/Mum/2022 2 2. The present MA has been filed challenging the order of the Tribunal in dismissing the appeal on low tax effect. The Revenue contends that tax effect has to be calculated for every assessment year and in this case the appeal under section 248 of the Act before Ld. CIT (A) was not with reference to the total income of the assessee rather impugned appeal was with regard to the transaction. The Ld. DR contented that tax effect should not be calculated with respect to the total income of person for any particular assessment year but has to be computed with regard to the transaction. Ld. DR further states that considering this view the appeal against the assessee will not be covered under the exception as the transaction with regard to TDS does not cover the monetary limits. The Ld. DR further contented that monetary low tax effect is not applicable to TDS cases as in assessee’s case. The Ld. DR prayed for recall of co-ordinate bench decision dated 30- 05-2019 in ITA No. 5207/Mum/2019. The Ld. AR on the other hand argued that the Revenue’s appeal in assessee’s case will be covered under the monetary threshold limit and further states that TDS will also be covered under the low tax effect. The Ld. AR relied on the decision of the Tribunal in ITA No. 5207/Mum/2019. The Ld. AR relied on the decision of Hon’ble Supreme Court in the case of Disney Broad Casting (Ind.) Ltd. (2022) 104 taxmann.com 249 (SC) and Zee Entertainment Enterprises Ltd. (2022) (117) Taxmenn.com 132 (SC) which had dismissed the special leave petition filed against the order of dismissal as drawn due to low taxes effect pertaining to deduction of tax at source. 3. Having heard the rival submissions perused the material on record it is observed that the co-ordinate bench in assessee’s case for AY 2018-19 has decided identical issue in favour of the assessee in MA no. 190, 191, 192/Mum/2021 arising out of ITA Reliance Jio Infocomm. Ltd. MA No. 90/Mum/2022 3 No. 2214, 2215, 2217/Mum/2019. It is pertaining to point out that the assessing officer in the present miscellaneous application has specified that tax effect should not be calculated that respect to the total income of the assessee for particular assessment year and should be determined from the disputed tax amount which relates to the specific transaction and has relied on Para 4 of circular no. 3/2018 to substantiate to said view. Further to this the assessing officer has contended that monetary limits will not be applied in TDS cases has been negated from the decision of Hon’ble Supreme Court in Disney Broad Casting (Ind.) Ltd. and Zee Entertainment Enterprises Ltd. (Supra) and also in case of the co-ordinate bench decision in assessee’s case. For ease on reference Para 4 of circular no. 3/2018 is reproduce as under: 4. For this purpose, 'tax effect' means the difference between the tax on Net Wealth assessed and the tax that would have been chargeable had such Net Wealth been reduced by the amount of wealth in respect of the issues against which appeals is intended to be filed. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. 4. On a bare perusal of the above mentioned reference to the circular of CBDT it is observed that there is no bar in dismissing the appeal pertaining to TDS cases which would fall under the low tax effect as per the CBDT circular. Reliance Jio Infocomm. Ltd. MA No. 90/Mum/2022 4 5. From the above observation and by respectfully following the decision cited above we find no merits in the miscellaneous application filed by the Revenue. 6. In the results this miscellaneous application is dismissed. Order pronounced in the open court on 04.10.2022. Sd/- Sd/- (PRASHANT MAHARISHI) (KAVITHA RAJAGOPAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated : 04/10/2022 ANIKET RAJPUT (STENOGRAPHER) 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// (Assistant Registrar) ITAT, Mumbai