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Income Tax Appellate Tribunal - Mumbai

Acit Cir 11(3)(2), Mumbai vs Westex Infotech P.Ltd, Mumbai on 3 August, 2018

     IN THE INCOME TAX APPELLATE TRIBUNAL
                  "K" Bench, Mumbai
 Before S/Shri B.R.Baskaran (AM) & Amarjit Singh (JM)

 I.T.A. No. 3037/Mum/2017 (Assessment Year 2009-10)

 ACIT, Circle-11(3)(2)      M/s. Westex Infotech
 Aayakar Bhavan         Vs. Pvt. Ltd.
 4 t h Floor, M.K. Road     1205, Dalamal Towers
 Mumbai-400 020.            Nariman Point
                            Mumbai-400 021.

                             PAN : AAACW5913B
 (Appellant)                 (Respondent)

 I.T.A. No. 3043/Mum/2017 (Assessment Year 2011-12)

DCIT-(3)(3)(2)             M/s. United Ocean Ship
Aayakar Bhavan         Vs. Management Pvt. Ltd.
6 t h Floor, M.K. Road     701-702, The Qube
Mumbai-400 020.            Off. Sahar International
                           Airport Approach Road
                           Plot No. 1498, A/2
                           Andheri East
                           Mumbai-400 059.

                             PAN : AAACU7942A
(Appellant)                  (Respondent)

 I.T.A. No. 3037/Mum/2017 (Assessment Year 2009-10)

 DCIT, Circle-11(2)(1)       M/s. Shree Riddhi
 Aayakar Bhavan        Vs.   Chemicals Pvt. Ltd.
  t h
 4 Floor, M.K. Road          1 s t Floor, Hronby View
 Mumbai-400 020.             Building, 12 Rustom
                             Sidhwa Marg, Fort
                             Mumbai-400 001.

                             PAN : AADCS0750K
 (Appellant)                 (Respondent)
                                          2


              I.T.A. No. 3077/Mum/2017 (Assessment Year 2010-11)

             ITO 26(1)(3)          Smt. Chhaya Kiran Sheth
             C-11, 7 t h Floor Vs. B11/8, AvantiApartments
             BKC, Bandra East      Flank Road, Sion East
             Mumbai-400 051.       Mumbai-400022.

                                        PAN : AACPS2823D
             (Appellant)                (Respondent)

                Assessee by                  None
                Department by                Shri Manoj Kumar
                Date of Hearing              3.8.2018
                Date of Pronouncement        3.8.2018

                                    ORDER

Per Bench:-

The revenue has filed these appeals challenging the orders passed by Ld CIT(A) in the respective hands of the assessees and they relate to the assessment years mentioned in the caption against the name of each of the assessees. In all these appeals, the revenue is aggrieved by the decision of Ld CIT(A) in granting relief to the respective asessees.

2. These appeals were heard ex-parte. We noticed that the quantum in dispute involved in these appeals is as given below and hence the tax effect involved therein is less than Rs.20.00 lakhs.

                     Name of assessee               Quantum in      Penalty
                                                      dispute       amount

       Westex Infotech Pvt. Ltd.                        57,06,098           -
       United Ocean Ship Management Pvt. Ltd.           57,84,679           -
       Shree Riddhi Chemicals Pvt. Ltd.                         -   12,10,011
       Chhaya Kiran Sheth                               60,36,395           -

The CBDT has issued a new Circular No.3/2018 dated 11.07.2018 in supersession of its earlier Circular No.21/2015 dated 10.12.2015. According to the Circular No.3/2018, the revenue is precluded from pursuing its appeal if the tax effect is Rs.20.00 lakhs or less. Apparently the issue in dispute does 3 not fall in any of the exceptions provided in paragraph 10 of the Circular No.3/2018, referred above. The Ld D.R, however, sought time to get a certificate from the PCIT/CIT concerned that the grounds urged in this appeal does not fall under any of the exceptions specified in the said circular. However, from the available material, he could not point out that the issue contested in this appeal fall in any of the exceptions.

3. We have noticed that the tax effect involved in this appeal is less than Rs.20.00 lakhs and the issue contested herein also apparently does not fall in any of the exceptions specified in the Circular. Accordingly we dismiss the appeals of the revenue in limine. However, the revenue is given liberty to move miscellaneous application seeking recall of this order, if it is found that the issue contested in this appeal falls in any of the exception provided in paragraph 10 of the Circular.

4. In the result, all the appeals of the revenue are dismissed.

Order has been pronounced in the Court on 3.8.2018.

                Sd/-                                           Sd/-
           (AMARJIT SINGH)                              (B.R. BASKARAN)
          JUDICIAL MEMBER                             ACCOUNTANT MEMBER

Mumbai; Dated : 3/8/2018

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//

                                                        (Senior Private Secretary)
PS                                                          ITAT, Mumbai