DCIT., CIRCLE-1(1), HYDERABAD V. ARCESIUM INDIA PRIVATE LIMITED, HYDERABAD

MA 56/HYD/2024

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The case involves a Miscellaneous Application (M.A.) filed by the Revenue seeking to reconsider and modify a previous order of the Income Tax Appellate Tribunal, Hyderabad. The original order, passed in July 2022, pertained to the assessment year 2018-19 and was based on the legal interpretations prevailing at that time. The Revenue's request for reconsideration was prompted by a subsequent Supreme Court judgment which clarified the interpretation of certain tax provisions. However, the Tribunal dismissed the M.A. due to the significant delay in filing and also on the grounds that the original decision was legally sound based on the statutes and precedents at the time it was made.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472511 (ITAT-HYDERABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2018-2019
• Other Referred Cases: M/s Checkmate Services Pvt. Ltd. Vs. CIT
• Laws Referred To: Section 254(2) of the Act, Section 36(1)(va) read with Section 2(24)(x)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VAMSI KRISHNA
• Assessee Lawyers: LAKSHMI NARASIMHA; C.A
• Section: 254(2); 13

Judgement Text

" आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A” , HYDERABAD BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER M.A. No.56/Hyd/2024 in ITA No.205/Hyd/2022 Assessment Year: 2018-19 The Deputy Commissioner of Income Tax, Circle – 1(1), Hyderabad. Vs. Arcesium India Private Limited, Hyderabad. PAN : AANCA4304M (Applicant / Appellant) (Respondent / Respondent) Assessee by: Sri Lakshmi Narasimha, C.A (Appeared through Hybrid mode) Revenue by: Shri Vamsi Krishna, Sr.D.R. Date of hearing: 24.01.2025 Date of pronouncement: 03.02.2025 आदेश / O R D E R PER LALIET KUMAR, J.M. : The present Miscellaneous Application has been filed by the Revenue with a request to reconsider and modify the order passed by the Co-ordinate Bench of the Tribunal dt.21.07.2022 in ITA No.205/Hyd/2022 for A.Y. 2018-19 as per section u/s 254(2) of the Act. Page 2 of 4 2. At the outset, the Ld. DR submitted that after the passing of the order in ITA No.2052/Hyd/2022, the Revenue filed the present Miscellaneous Application seeking a review of the Tribunal's decision in light of the Hon'ble Supreme Court’s judgment in M/s Checkmate Services Pvt. Ltd. Vs. CIT, dated 12.10.2022. The Ld. DR contended that the Tribunal's order was passed based on the legal interpretation prevailing at that time. However, with the Apex Court's ruling clarifying the interpretation of Section 36(1)(va) read with Section 2(24)(x), the earlier decision of the Tribunal is now contrary to the latest legal position and therefore, the M.A., should be reconsidered and modified. 3. On the other hand, the Ld. AR submitted that a Miscellaneous Application has to be filed within six months from the date of passing of the order, whereas the present M.A. has been filed with a delay of 672 days, i.e., almost two years. The Ld. AR contended that the M.A. is liable to be dismissed on the ground of limitation itself. 4. We have heard the rival submissions and perused the material on record. The statutory period for filing an M.A. is six months from the end of the month in which the order was passed. In the present case, the order was passed by the Tribunal in July 2022, and therefore, the M.A. should have been filed within six months from the end of that month. However, the present M.A. has been filed with a delay of 672 days, i.e., almost two years. Though an affidavit has been submitted, we note that the statute does not grant the power to condone such a delay. Therefore, the M.A. filed by the Revenue is not maintainable and is accordingly dismissed. Page 3 of 4 5. Furthermore, we observe that the order passed by the Tribunal on 21.07.2022 was in accordance with the law prevailing at that time. The decision of the Hon'ble Supreme Court in Checkmate Services (supra) was delivered subsequently. In our considered opinion, even on merits, the order of the Tribunal was passed in line with the legal position existing at that point in time, as there was no contrary decision then. Therefore, the M.A. filed by the Revenue is not tenable on merits as well. 6. In the result, Miscellaneous Application filed by the Revenue is dismissed. Pronounced in the open Court on this the 3rd day of February, 2025. Sd/- Sd/- (G. MANJUNATHA) ACCOUNTANT MEMBER (LALIET KUMAR) JUDICIAL MEMBER Hyderabad, dated 03rd February, 2025. TYNM / SPS Page 4 of 4 Copy to: S.No Addresses 1 Arcesium India Private Limited, Building No. 12C, Floor Nos. 12(P), 13 and 14(P), Mindspace Cyberabad, S.No.64(P), M/s. Sundew Properties Ltd., IT/ITES SEZ at Madhapur Village, Serilingampally, Ranga Reddy District, Hyderabad. 2 The Deputy Commissioner of Income Tax, Circle – 1(1), Hyderabad 3 Pr.CIT, Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "