DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-4(1), MUMBAI vs. FERRANI HOTELS PRIVATE LIMITED, MUMBAI

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ITA 1788/MUM/2018Status: DisposedITAT Mumbai10 August 2018AY 2014-153 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 noted that as per CBDT Circular No. 3/2018, appeals with a tax effect of Rs. 20.00 lakhs or less are generally not to be pursued, unless they fall under specific exceptions. Since the issues did not appear to fall under any exceptions, the appeals were dismissed.

What were the facts?

The revenue filed appeals against orders of the CIT(A) granting relief to assessees. The quantum of dispute in each appeal was less than Rs. 20.00 lakhs, and the tax effect was also below this threshold.

What were the issues?

Whether the revenue's appeals should be dismissed in limine due to low tax effect as per CBDT Circular No. 3/2018, and if the issues fall within the exceptions mentioned in the circular.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

I.T.A. No. 631/Mum/2018
I.T.A. No.1463/Mum/2018

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI B. R. BASKARAN, AM AND SHRI AMARJIT SINGH, JM

आयकरअपीलसं/I.T.A. No. 631/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2013-14) ITO (IT)-3(2)(1) बिधम / Mr. Philip Mathew 16th Floor, Room No. 1627, A-401, Florentine, Vs. Air India Bldg. Nariman Hiranandani Gardens, Point, Mumbai-21. Powai Mumbai-400076. स्थायीलेखासं/.जीआइआरसं/.PAN/GIR No. : AWPPM2482D (अपीलाथी .. (प्रत्यथी / Appellant) / Respondent)

आयकरअपीलसं/I.T.A. No.1463/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2010-11) ITO-6(3)(2), बिधम / M/s. Karan Traders Pvt. Room No.524, 5th Floor, Ltd. 12/121, 2nd Floor, Vs. Aayakar Bhavan, M.K. Kashi Kunj, Scheme-6, Road, Mumbai-400020. Road-27, Opp. Rupam Cinema, Sion (E), Mumbai- 400022. स्थायीलेखासं/.जीआइआरसं/.PAN/GIR No. : AAACK4196Q (अपीलाथी .. (प्रत्यथी / Appellant) / Respondent)

आयकरअपीलसं/I.T.A. No.1707/M/2018 (निर्धारणवर्ा / Assessment Year: 2010-11) DCIT-9(3)(2) बिधम / M/s. Flameproof 418, 4th Floor, Aayakar Equipments Pvt. Ltd., Plot Vs. Bhavan, Mumbai-400020. No. B-39, Near Monginis Cake, New Link Road, Andheri (w), Mumbai- 400053. स्थायीलेखासं/.जीआइआरसं/.PAN/GIR No. : AAACF3983C (अपीलाथी .. (प्रत्यथी / Appellant) / Respondent)

आयकरअपीलसं/I.T.A. No.1788/M/2018 (निर्धारणवर्ा / Assessment Year: 2014-15) DCIT Central Circle-4(1) बिधम / M/s. Ferrani Hotels Pvt. Central Range-4 Pr. CIT Ltd. Construction House B, Vs. (C)-2 R. No. 1916, 19th 2nd Floor, 623, Linking Floor, Air India Building, Road, Khar (W), Mumbai- Nariman Point, Mumbai- 400092. 400021. स्थायीलेखासं/.जीआइआरसं/.PAN/GIR No. : AAACF0693B (अपीलाथी .. (प्रत्यथी / Appellant) / Respondent)

Revenue by: Shri Manoj Kumar (DR) Assessee by: None सुनवाईकीतारीख / Date of Hearing: 10.08.2018 घोषणाकीतारीख /Date of Pronouncement: 10.08.2018

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. Sr.No Name of Assessee Quantum in Dispute Penalty Amount 1 Philip Mathew 50,94,268/- - 2 Karan Traders Pvt. Ltd. 35,00,000/- - 3 Flameproof Equipments Pvt. Ltd 46,57,644/- - 4 Ferrani Hotels Pvt. Ltd. 30,69,330/- - 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 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 appeal 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 pronounced in the open court on 10.08.2018. (AMARJIT SINGH) (B. R. BASKARAN) न्यधनिकसदस्य/JUDICIAL MEMBER लेखधसदस्य / ACCOUNTANT MEMBER मुंबई Mumbai; दिनांकDated : 10.08.2018. Vijay आदेशकीप्रनिनलनिअग्रेनर्ि/Copy of the Order forwarded to : 1. अपीलाथी/ The Appellant 2. प्रत्यथी/ The Respondent. 3. आयकरआयुक्त(अपील)/ The CIT(A)- 4. आयकरआयुक्त/ CIT 5. दवभागीयप्रदतदनदि,आयकरअपीलीयअदिकरण ,मुंबई/ DR, ITAT, Mumbai 6. गार्डफाईल / Guard file. आदेशधिुसधर/ BY ORDER, सत्यादपतप्रदत //// Sr. Private Secretary आिकरअिीलीिअनर्करण ,मुंबई / ITAT, Mumbai

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