DEPUTY COMMISSIONER OF INCOME TAX 12(2)(1), MUMBAI vs. DAANISH SYSCOM LIMITED, MUMBAI

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ITA 637/MUM/2018Status: DisposedITAT Mumbai10 August 2018AY 2012-133 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 in limine as the tax effect was below the threshold specified in CBDT Circular No. 3/2018. The revenue was given liberty to move for recall if exceptions applied.

What were the facts?

The revenue filed appeals against orders of the CIT(A) granting relief to assessees. The quantum of dispute in all appeals was less than Rs. 20.00 lakhs.

What were the issues?

Whether revenue appeals with a tax effect below Rs. 20.00 lakhs should be dismissed in light of CBDT Circular No. 3/2018, unless specific exceptions apply.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

I.T.A. No.637/Mum/2018
I.T.A. No.1199/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

आयकर अपील सं/ I.T.A. No.637/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2012-13) DCIT 12(2)(1) बिधम/ M/s. Daanish Syscom Ltd. Room No.223, 2nd Floor, 5/10, Delite Apartment, Vs. Aayakar Bhavan, M.K. Carter Road, Bandra (W) Road, Mumbai-400020. Mumbai-400050. स्थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AABCD8773D (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent)

आयकर अपील सं/ I.T.A. No.1199/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2012-13) ACIT-27(2) बिधम/ Mumbai-400077. Navi Mumbai-400703. स्थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AGMPM9537E (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent)

आयकर अपील सं/ I.T.A. No.1724/M/2018 (निर्धारण वर्ा / Assessment Year: 2010-11) ITO-24(1)(5) बिधम/ Parel, Mumbai-400012. Marg, Andheri (E), Mumbai- 400069. स्थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAEPM1497K (अपीलाथी /Appellant) (प्रत्यथी / Respondent) ..

आयकर अपील सं/ I.T.A. No.1923/M/2018 (निर्धारण वर्ा / Assessment Year: 2013-14) The Dy. CIT-15(1)(1) बिधम/ M/s. 1-2, E0-5, Sector-1, Vashi, Karve Road, Mumbai- Navi Mumbai-400703. 400020. स्थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACA9593P (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent)

Revenue by: Shri Manoj Kumar (DR) Assessee by: None सुनवाई की तारीख / Date of Hearing: 10.08.2018 घोषणा की तारीख /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 33,41,955/- - Daanish Syscom Ltd 2 63,18,886/- - Nisha J Mehta 3 Dhansukh D. Mehta 50,00,000/- - 4 Ajay Deep Constructions Pvt. 38,30,558/- - Ltd. 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) न्यधनिक सदस्य/JUDICIAL MEMBER लेखध सदस्य / ACCOUNTANT MEMBER मुंबई Mumbai; दिनांक Dated : 10.08.2018. Vijay आदेश की प्रनिनलनि अग्रेनर्ि/Copy of the Order forwarded to : अपीलाथी / The Appellant 1. प्रत्यथी / The Respondent. 2. 3. आयकर आयुक्त(अपील) / The CIT(A)- 4. आयकर आयुक्त / CIT 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, मुंबई / DR, ITAT, Mumbai 6. गार्ड फाईल / Guard file. आदेशधिुसधर/ BY ORDER, सत्यादपत प्रदत //// Sr. Private Secretary आिकर अिीलीि अनर्करण, मुंबई / ITAT, Mumbai

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