ITO 23 (3)(2), MUMBAI vs. SHANKESHWAR ENTERPRISES, MUMBAI

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ITA 7727/MUM/2019Status: DisposedITAT Mumbai15 September 2020AY 2006-076 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeals as not maintainable, following a CBDT circular directing withdrawal of appeals where the tax effect is below a certain threshold.

What were the facts?

The Revenue filed appeals before the ITAT against the orders of the CIT(A) for various assessment years. Both parties agreed that the appeals should be dismissed as not maintainable.

What were the issues?

Whether the Revenue's appeals are maintainable before the ITAT given the tax effect and the CBDT circular on appeal withdrawal.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VIRTUAL COURT

Before: SHRI JUSTICE P P BHATT & SHRI M. BALAGANESH, AM

For Appellant: Shri Abhishek Jhunjhunwala
For Respondent: Shri V. Vinodkumar, Shri Abhishek Jhunjhunwala
Hearing: 15/09/2020Pronounced: 15/09/2020

आदेश / O R D E R PER BENCH:

1.

These appeals in 7728/Mum/2019, 7730/Mum/2019 & for A.Y.2006-07, 2008-09, 2010-11 & 2011-12 arise out of the order by the ld. Commissioner of Income Tax (Appeals)-34, Mumbai in appeal No.CIT(A)-34/ITO- 23(3)(2)/IT-10894/14-15, CIT(A)-34/23(3)(2)/IT-10164/16-17, CIT(A)- 34/23(3)(2)/IT-10329/16-17,CIT(A)-34/23(3)(2)/IT-10298/17-18, CIT(A)- 34/23(3)(2)/IT-10370/18-19 respectively dated 12/09/2019 & 18/10/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 29/03/2014, 17/03/2016 & 19/12/2017 respectively by the Income Tax Officer – 19(3)(4), ITO-23(3)(2), Mumbai (hereinafter referred to as ld. AO).

2.

Both the parties before us mutually agreed that these revenue appeals are to be dismissed as not maintainable in view of the recent Circular issued by the CBDT dated 08/08/2019 wherein the revenue has been directed to withdraw the appeal preferred by it before the Tribunal if the tax effect on the disputed issues is less than or equal to Rs.50,00,000/-. It is well settled that this Circular is binding on the revenue authorities.

3.

Assessee submitted the following calculations for the A.Y.2006-07, 2008-09, 2010-11 & 2011-12.

M/s. Shankeshwar Enterprises M/S. SHANKESHWAR ENTERPRISES AY: 2006-07 Disputed Issues Involved in the Department's Appeal Total Income as per Assessment order u/s. 143(3) Rs.14,11,718/- Less: Additions deleted by CIT(A) order dated 12/09/2019 (Rs.5,71,718+Rs.5,00,000) (Rs.10,71,718/-) ---------------- Total Income after CIT(A) order Rs. 3,40,000/- ========= Working of Tax on Disputed issues Disputed Issues Rs.5,71,718/- =========== Income Tax on disputed issues @ 30% Rs. 1,71,515/- Add: Surcharge @ 10% Rs. 17,152/- Add: Education Cess @ 2% Rs. 3,773/- ----------------------------- Tax on disputed issues Rs. 1,92,440/- ============== M/S. SHANKESHWAR ENTERPRISES AY: 2008-09 Disputed Issues Involved in the Department's Appeal Total Income as per Assessment order u/s. 143(3) Rs. 17,00,000/- Less : Additions deleted by CIT(A) order dated (Rs.l7,00,000/-) 12/09/2019 ------------------- Total Income after CIT(A) order NIL =========== Working of Tax on Disputed issues Disputed Issues . . Rs. 17,00,000/- ============ Income Tax on disputed issues @ 30% Rs. 5,10,000/- Add : Surcharge @ 10% NIL Add: Education Cess @ 3% Rs. 15,300/- --------------------- Tax on disputed issues Rs. 5,25,300/- =========== M/s. Shankeshwar Enterprises M/S. SHANKESHWAR ENTERPRISES AY: 2010-11 Disputed Issues Involved in the Department's Appeal Total Income as per Assessment order u/s. 143(3) Rs.81,12,000/- Less : Additions deleted by CIT(A) order dated 12/09/2019 Rs.81,12,000/- ----------- Total Income after CIT(A] order NIL ============ Working of Tax on Disputed issues Disputed Issues Rs.81,12,000/- ============ Income Tax on disputed issues @ 30% Rs.24,33,600/- Add : Surcharge @ 10% NIL Add : Education Cess @ 3% Rs. 73,008/- --------------------- Rs.25,06,608/- Tax on disputed issues ============ M/S. SHANKESHWAR ENTERPRISES AY: 2011-12 Disputed Issues Involved in the Department's Appeal Total Income as per Assessment order u/s. 143(3) Rs.74,65,500/- Less : Additions deleted by CIT(A) order dated (Rs. 74,65,500/) 28/10/2019 ---------------------- Total Income after CIT(A) order NIL ============== Working of Tax on Disputed issues Disputed Issues Rs.74,65,500/- ============== Income Tax on disputed issues @ 30% Rs.22,39,650/- Add: Surcharge@ 10% NIL Add : Education Cess @ 3% 67,190/- M/s. Shankeshwar Enterprises

-------------------- Tax on disputed issues Rs.23,06,840/- ========== 4. Respectfully following the said Circular, the appeals filed by the revenue are dismissed as not maintainable.

5.

Incase, if the revenue is able to provide evidence that the cases fall under any of the exceptions provided in the circular issued by the CBDT, then the revenue may prefer miscellaneous application for recalling of this order, if they so desire, in which circumstance, these orders shall be recalled by this Tribunal.

6.

In the result, appeals filed by the revenue are dismissed as not maintainable.

Order pronounced in open Court on 15/09/2020.

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