SUPERGEMS (INDIA) PVT.LTD., MUMBAI v. ACIT - CIRCLE- 5(3)(2), MUMBAI

P A G E | 1 ITA NOS.5607 TO 5610/MUM/2018 & C.O. NOS.207 TO 209 & 223/MUM/2019 A.YS. 2010 - 11 TO 2013 - 14 ACIT CIRCLE - 5(3)(2) VS. M/S SUPERGEMS (INDIA) PVT. LTD. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G MUMBAI BEFORE SHRI S. RIFAUR REHMAN (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NOS . 5607 TO 5610/MUM/2018 C.O. NOS.207 TO 209 & 223/MUM/2019 (ASSESSMENT YEAR S : 2010 - 11 TO 2013 - 14) ASST. COMMISSIONER OF INCOME - TAX CIRCLE - 5(3)(2) ROOM NO.573 5 TH FLOOR AAYAKAR BHAVAN M.K.ROAD MUMBAI 400020 VS. M/S SUPERGEMS (INDIA) PRIVATE LIMITED FC/5041/42/43 BHARAT DIAMONDS CENTRE G - BLOCK BKC BANDRA (E) MUMBAI 400 051 PAN NO. AAACF4627R APPELLANT RESPONDENT REVENUE BY : MR. V. VINOD KUMAR D.R ASSESSEE BY : DR. K. SHIVARAM SR. ADVOCATE & : MS. NEELAM JADHAV ADVOCATE DATE OF HEARING : 28/11 /2019 DATE OF PRONOUNCEMENT : 2 8 /11 /2019 ORDER PER BENCH: THE PRESENT APPEAL S FILED BY THE REVENUE ARE DIRECTED AGAINST THE CONSOLIDATED ORDER PASSED BY THE COMMISS IONER OF INCOME TAX (APPEALS) - 10 [FOR SHORT CIT(A)] MUMBAI DATED 14.06.2018 FOR A.YS. 2010 - 11 TO 2013 - 14 WHICH IN TURNS ARISES FROM THE RESPECTIVE ASSESSMENT ORDER S PASSED BY THE A.O UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961 (FOR SHORT ACT) . 2. CENTRAL BOAR D OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT HIGH COURTS AND SLPS/APPEALS BEFORE SUPR EME COURT AS MEASURES FOR REDUCING LITIGATION. 3. CBDT VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE P A G E | 2 ITA NOS.5607 TO 5610/MUM/2018 & C.O. NOS.207 TO 209 & 223/MUM/2019 A.YS. 2010 - 11 TO 2013 - 14 ACIT CIRCLE - 5(3)(2) VS. M/S SUPERGEMS (INDIA) PVT. LTD. MONETARY LIMI T OF R S.20 00 000/ - . FOR THIS PURPOSE TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. FURTH ER TAX EFFECT SHALL BE TAXES INCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER THE TAX WILL NOT INCLUDE ANY INTEREST THEREON EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDER THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. AT PARA 13 OF THE ABOVE CIRCULAR IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROS PECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION CBDT VIDE CIRCULAR NO. 17/2019 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE ITAT AT RS.50 00 000/ - . 5. IN THE INSTANT APPEAL S FILED BY THE DEPARTMENT THE TAX EFFECT INVOLVED IN THE CAPTIONED APPEALS IS BELOW THE MONETARY LIMIT OF RS.50 00 000/ - IN EACH CASE . THE LD. AUTHORIZED REPRESE NTATIVE (FOR SHORT A.R) FOR THE ASSESSEE HAS FILED A CHART IN ORDER TO FORTIFY THE AFORESAID FACTUAL POSITION WHICH READS AS UNDER: SR. NO. A.Y. ITA NO. ADDITION TAX EFFECT 1. 2010 - 2011 5607/MUM/2018 1 643 685 558 689 2. 2011 - 2012 5608/MUM/2018 793 432 263 558 3. 2012 - 2013 5609/MUM/2018 1 363 814 442 489 4. 2013 - 2014 5610/MUM/2018 12 051 620 3 910 148 6. PER CONTRA THE LD. DEPARTMENTAL REPRESENTATIVE (FOR SHORT D.R) SUBMITS THAT LIBE RTY MAY KINDLY BE GIVEN TO SEEK RECALL OF THE DISMISSAL OF APPEAL S AND THEIR RESTORATION I N CASE IT CAN BE SHOWN THAT ANY OF THE SAID APPEAL WAS COVERED BY THE EXCEPTIONS. 7. WE AGREE WITH THE ABOVE CONTENTIONS OF THE LD. DR AND MAKE IT CLEAR THAT THE APPELLANT SHALL BE AT LIBERTY TO POINT OUT THE EXCEPTIONS AND WE WILL TAKE APPROPRIATE REMEDIAL MEASURES IN THIS REGARD. 8. WITH THE ABOVE OBSERVATIONS THE CAPTIONED APPEAL S FILED BY THE REVENUE FOR A.Y(S) 2010 - 11 TO 2013 - 14 ARE DISMISSED. P A G E | 3 ITA NOS.5607 TO 5610/MUM/2018 & C.O. NOS.207 TO 209 & 223/MUM/2019 A.YS. 2010 - 11 TO 2013 - 14 ACIT CIRCLE - 5(3)(2) VS. M/S SUPERGEMS (INDIA) PVT. LTD. C.O. NOS.207 TO 209 & 223/MUM/2019 (ASSESSMENT YEARS: 2010 - 11 TO 2013 - 14) 9. AS WE HAVE DISMISSED THE CAPTIONED APPEALS FILED BY THE REVENUE FOR THE REASON THAT THE TAX EFFECT THEREIN INVOLVED IS FOUND TO BE BELOW THE MONETARY LIMIT OF RS.50 00 000/ - AS ENVISAGED IN THE CBDT C IRCULAR NO. 17/ 20 19 DATED 08.08.2019 THEREFORE THE AFORESAID CROSS - OBJECTION S ARISING OUT OF THE SAID RESPECTIVE APPEALS ARE ALSO DISMISSED AS HAVING BEEN RENDERED AS INFRUCTUOUS. 10. RESULTANTLY THE CAPTIONED APPEALS OF THE REVENUE FOR A.Y. 2010 - 11 TO A.Y. 2013 - 14 ITA NOS. 5607 TO 5610/MUM/2018 AND ALSO THE C.O. NOS. 207 TO 209/MUM/2019 & C.O NO.223/MUM/2019 FILED BY THE ASSESSEE ARISING FROM THE AFORE SAID APPEALS OF THE REVENUE ARE DISMISSED IN TERMS OF OUR AFORESAID OBSERVATIONS. ORDER PR ONOUNCED IN THE OPEN COURT ON 2 8 /11 /2019. S D / - S D / - (S.RIFAUR RAHMAN) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 2 8 /11 /2019 ROHIT P.S. 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// (SR. PRIVATE SECRETARY) ITAT MUMBAI