Income Tax Appellate Tribunal - Mumbai
Asst Cit 1(1)(1), Mumbai vs Banhem Estate & I.T Parks Ltd, Mumbai on 28 August, 2018
आयकर अपीलीय अधिकरण "B " न्यायपीठ मब
ुं ई में ।
IN THE INCOME TAX APPELLATE TRIBUNAL " B" BENCH, MUMBAI
श्री महावीर स हिं , न्याययक दस्य एविं श्री रसमत कोचर लेखा दस्य के मक्ष ।
BEFORE SRI MAHAVIR SINGH, JM AND SRI RAMIT KOCHAR, AM
Aayakr ApIla saM . / ITA No. 2329/Mum/2017
(inaQa- a rNa baYa- / Assessment Year 201 0-11)
Asst. Commissioner of Income Tax 1(1)(1)
579, Aayakar Bhavan, M.K. Road, ...... (ApIlaaqaI- / Appellant)
Mumbai-400 020
Vs.
Banhem Estate & I.T. Parks Ltd.
The times of India Building Dr . ...... (p`%yaqaaI- / Respondent)
D.N. Road, Fort, Mumbai -400 001
स्थायी ले खा िं . / PAN No. AAACB2190F
अपीलाथी की ओर े / Appellant by : Shri D. G. Pansari, DR
प्रत्यथी की ओर े / Respondent by : Shri V. Mohan, AR
न
ु वाई की तारीख / Date of hearing: 28-08-2018
घोषणा की तारीख / Date of pronouncement : 28-08-2018
AadoSa / O R D E R
PER MAHAVIR SINGH, JM:
This appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-2, Mumbai [in short CIT(A)], in appeal No. CIT(A)-2/IT/16/2013-14, dated 09.12.2016. The assessment was framed by the Dy. Commissioner of income Tax, Circle- 1(1), Mumbai (in short 'DCIT'/ AO) for the A.Y. 2009-10 vide order dated nil day.01.2013 under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act').
2. This appeal contains the quantum addition i.e. disallowance of expenses relatable to exempt income under section 14A of the Act read 2 ITA No s . 2 32 9/ Mu m/ 2 01 7 with rule 8Dof the IT Rules, 1962 wherein the disallowance was at ₹ 46,46,409/-. When this was confronted to the learned Sr. Departmental Representative he admitted that the tax effect in this appeal is less than ₹ 20 lacs and covered by the CBDT Circular No. 03 of 2018 dated 11.07.2018.
3. We have gone through the circular and noticed that this circular will apply to pending appeals also & we are referring to Para 13 of the circular for this proposition, which reads as under: -
"13. This Circular will apply to SLPs/appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/cross objections/ references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed."
4. In view of the above, we are of the view that the Revenue's appeals are fully covered by CBDT circular No. 3 of 2018 and there is no exception brought out by the Revenue that these appeals falls under any of the exception as provided in Para 10 which reads as under: -
"10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:
(a) Where the Constitutional validity of the provisions of an Act or Rule IS under challenge, or 3 ITA No s . 2 32 9/ Mu m/ 2 01 7
(b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or
(c) Where Revenue Audit objection m the case has been accepted by the Department, or
(d) Where the addition relates to undisclosed foreign assets/ bank accounts."
5. When this was confronted to the learned Sr. Departmental Representative Shri DG Pansari, he could not point out that this appeal falls under any of the exception as provided in Circular No. 3 of 2018 but he only requested that a liberty be given to Revenue for recalling of the order in case the AO found that this case falls under any of the exceptions as provided in this circular. Admittedly, the tax effect in this appeal of Revenue is much below the prescribed limit of filing appeal before the Tribunal i.e. ₹ 20 lacs as per CBDT circular No. 3 of 2018. In view of the above, this appeal of Revenue is dismissed as withdrawn in view of Circular No 3 of 2018. However, the Revenue is at liberty to get the order recalled in case any of the above appeal falls under the exceptions as provided in above CBDT circular.
6. In the result, the appeal of the revenue is dismissed.
Order pronounced in the open court on 28-08-2018.
Sd/- Sd/-
(रसमत कोचर / RAMIT KOCHAR) (महावीर स ह
िं /MAHAVIR SINGH)
(लेखा दस्य / ACCOUNTANT MEMBER) (न्याययक दस्य/ JUDICIAL MEMBER)
मुिंबई, ददनािंक/ Mumbai, Dated: 28-08-2018 सदीप सरकार, व.निजी सधिव / Sudip Sarkar, Sr.PS 4 ITA No s . 2 32 9/ Mu m/ 2 01 7 आदे श की प्रनिललपप अग्रेपिि/Copy of the Order forwarded to :
1. अपीलाथी / The Appellant
2. प्रत्यथी / The Respondent.
3. आयकर आयुक्त(अपील) / The CIT(A)
4. आयकर आयुक्त / CIT
5. ववभागीय प्रयतयनधि, आयकर अपीलीय अधिकरण, मुिंबई / DR, ITAT, Mumbai
6. गार्ड फाईल / Guard file.
आदे शािसार/ BY ORDER, त्यावपत प्रयत //True Copy// उप/सहायक पुंजीकार (Asstt. Registrar) आयकर अपीलीय अधिकरण, मुिंबई / ITAT, Mumbai