ADITYA BIRLA FINANCIAL SHARED SERVICES LIMITED,MUMBAI V. ACIT-6(1)(1),MUMBAI, MUMBAI

MA 122/MUM/2025

AI Insights

The case involved M/s Aditya Birla Financial Shared Services Limited, the appellant, against the Assistant Commissioner of Income Tax, the respondent. The appellant filed a Miscellaneous Application seeking the recall of a Tribunal order dated 04.03.2025, which had decided on the merits of the case. The appellant argued that the Revenue's appeal should have been dismissed on the grounds of low tax effect, referencing the CBDT Circular no.17/2019. The Assessing Officer admitted to an error in the computation of disallowed depreciation, which affected the tax effect and was rectified in a subsequent order. Consequently, the Tribunal found the Revenue's appeal not maintainable on account of low tax effect and allowed the withdrawal of the appeal and the dismissal of the Cross Objection as infructuous.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780364 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 06-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HIMANSHU JOSHI
• Assessee Lawyers: YOGESH THAR; SUKANYA JAYARAM; ARS
• Keywords: Depreciation; Tax effect
• Section: 154

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER MA No. 122/MUM/2025 [Arising out of ITA No. 3333/MUM/2023] [Arising out of CO No. 20/MUM/2024] Assessment Year: 2011-12 M/s Aditya Birla Financial Shared Services Limited, One World Center, Tower 1, 18th Floor, Jupiter Mill Compound, 841 Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013, Maharashtra Vs. Assistant Commissioner of Income Tax, Circle - 6(1)(1), Room No. 504, 5th Floor, Aayakar Bhavan, M.K. Road, Mumbai – 400 020, Maharashtra स्थायी लेखा सं./PAN No. : AAHCA1581A (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee by : Shri Yogesh Thar and Sukanya Jayaram,ARs Revenue by : Shri Himanshu Joshi (Sr.DR) Date of Hearing : 29.08.2025 Date of Pronouncement : 06.10.2025 आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :- 1. This Miscellaneous Application has been filed by the assessee for recalling of the Tribunal order dated 04.03.2025 passed in ITA No. 3333/Mum/2023 and Cross Objection No. 20/Mum/2024 for A.Y. 2011-12. 2. The assessee has stated in the application that the above appeals were heard on 18.02.2025 and the case have been decided on merits though it was submitted that the appeal of the Revenue ought to have been dismissed on low tax effect as per CBDT Circular no.17/2019 dated 08.08.2019. Printed from counselvise.com MA No.122/Mum/2025 A.Y. 2011-12 M/s Aditya Birla Financial Shared Services Limited 2 3. In this regard, a factual report was called from the Assessing Officer through the ld.DR regarding the tax effect. An e-mail communication dated 28.08.2025 addressed to the ld.Sr.AR by the ACIT 6(1)(1),Mumbai has been placed on record wherein the AO has admitted that due to inadvertent error in computation of the disallowed depreciation, the correct amount of depreciation ought to be Rs 1,05,89,944/-and not Rs 2,75,24,307/-.The error was later rectified by him vide order u/s 154 of the Act dated 22.02.2017.Consequently,the tax effect stood was less than prescribed monetary limit as per as per CBDT Circular(supra) for filing of appeal before ITAT. Therefore, it was requested that the appeal of the Revenue may be withdrawn. 3.1 The contentions of the ld.AR are found to be factually correct as the impugned appeal of the Revenue is not maintainable on account of low tax effect and no adjudication on merits was required. Accordingly, both the above appeals are hereby recalled for deciding afresh. 4. However, as stated above, in view of the above stated communication from the AO, at the request of the ld.DR, the appeal filed by the Revenue in ITA No. 3333/MUM/2023 is dismissed as we allow it to be withdrawn due low tax effect case. Consequently, the CO filed by the assessee in CO No. 20/MUM/2024 also becomes infructuous as also assented by the ld.AR, Accordingly, the CO is also dismissed being infrucutous. Printed from counselvise.com MA No.122/Mum/2025 A.Y. 2011-12 M/s Aditya Birla Financial Shared Services Limited 3 5. In the result, Miscellaneous Application of the assessee succeeds and is accordingly allowed. Order pronounced in the open court on 06/10/2025. Sd/- Sd/- NARENDER KUMAR CHOUDHRY PRABHASH SHANKAR (न्यायिक सदस्य/JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai ददनाुंक /Date 06.10.2025 Lubhna Shaikh / Steno आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER, उि/सहािक िंजीकार (Dy./Asstt. Registrar) आिकर अिीलीि अयिकरण/ ITAT, Bench, Mumbai. Printed from counselvise.com "