DCIT Corporate Circle 1(2), CHENNAI V. Consul Neowatt Power Solution Pvt. Ltd., CHENNAI

ITA 1291/CHNY/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5994 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 16-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Reasonable cause; Tax effect

Judgement Text

आयकर अपील य अ धकरण,‘ए’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘A’ BENCH, CHENNAI ी वी .द ु गा राव, या यक सद य एवं ी जी. मंज ु नाथ, लेखा सद य के सम% BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I. T. A. No. 1 2 9 1 / C hn y/ 2 0 1 8 & C. O . N o. 1 0 3 /C hn y/ 2 0 1 8 [ I n I T A N o . 1 2 91 / Ch n y/ 20 1 8 ] ( नधा रणवष / A ss e ss m en t Yea r : 2 01 4 - 15) Deputy Commissioner of Income Tax, Corporate Circle-1 (2), Chennai. V s M/s. Fuji Electric Consul Neowatt Pvt.Ltd. (Formerly known as M/s.Consul Neowatt Power Solution Pvt. Ltd.) 4/329A, Mahabalipuram Road, Thiruvanmiyur, Chennai-600 041. PA N: AA BC C 2 5 5 3 Q (अपीलाथ /Appellant) ( यथ /Respondent / Cross Objector ) अपीलाथ क ओरसे/ Appellant by : Mr. AR.V. Sreenivasan, Addl. CIT यथ क ओरसे/Respondent by : Mrs. N.V.Lakshmi, Advocate स ु नवाईक तार ख/D a t e o f h e a r i n g : 21.03.2022 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 28.03.2022 आदेश / O R D E R PER G.MANJUNATHA, AM: This appeal filed by the Revenue and cross objection filed by the assessee are directed against order passed by the learned Commissioner of Income Tax (Appeals)-4, Chennai, dated 02.01.2018 and pertains to assessment year 2014-15. 2. At the outset, learned AR for the assessee submitted that the cross objection filed by the assessee is time barred by 6 days for which necessary petition for condonation of delay along with affidavit explaining the reasons for the delay has 2 ITA No. 1291/Chny/2018 & C.O.No.103/Chny/2018 been filed. The AR further submitted that the assessee could not file cross objection within the time allowed under the Act, due to the fact that there was delay in appointing tax consultants which caused delay of 6 days. The delay in filing cross objection is neither intentional nor willful, but for the unavoidable reasons, therefore, he prayed that delay may be condoned in the interest of advancement of substantial justice. 3. The learned DR, on the other hand, strongly opposing condonation of delay petition filed by the assessee submitted that the reasons given by the assessee do not come within the ambit of reasonable and bonafide reasons, which can be considered for condonation of delay and hence, cross objection filed by the assessee may be dismissed as not maintainable. 4. Having heard both sides and considered the petition filed by the assessee for condonation of delay, we are of the considered view that reasons given by the assessee for not filing the cross objection within the time allowed under the Act comes under reasonable cause as provided under the Act for condonation of delay and hence, delay in filing of cross 3 ITA No. 1291/Chny/2018 & C.O.No.103/Chny/2018 objection is condoned and cross objection filed by the assessee is admitted for adjudication. 5. It is stated before us that the tax effect in the above appeal is less than Rs. 50 lakhs and therefore, the Circular No. 17 of 2019 dated 08.08.2019 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under section 268A(1) of the Income Tax Act, 1961 comes into play wherein, the monetary limit for filing the appeal by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of the reducing the tax litigation. In the said circular, it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 50 lakhs appeals should not be filed. Thus, taking note of CBDT Circular No. 17 of 2019 dated 08.08.2019 and considering the fact that the tax effect in the instant appeal is less than Rs. 50 lakhs, the present appeal deserves to be dismissed as not pressed / not maintainable. However, we make it clear that issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal 4 ITA No. 1291/Chny/2018 & C.O.No.103/Chny/2018 fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so advised. Accordingly, in the light of CBDT circular No. 17 of 2019 dated 08.08.2019, this appeal stands dismissed. Since, the appeal filed by the Revenue itself is dismissed, the cross objection filed by the assessee becomes infructuous and accordingly, the Cross Objection is also dismissed. 6. In the result, appeal filed by the Revenue and the cross objection filed by the assessee are dismissed. Order pronounced in the open court on 28 th March, 2022 Sd/- Sd/- (वी. द ु गा राव) ( जी. मंज ु नाथ ) ( V.Durga Rao) ( G.Manjunatha ) #या यक सद&य /Judicial Member लेखा सद&य / Accountant Member चे#नई/Chennai, )दनांक/Dated 28 th March, 2021 DS आदेश क त+ल,प अ-े,षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु .त (अपील)/CIT(A) 4. आयकर आय ु .त/CIT 5. ,वभागीय त न2ध/DR 6. गाड फाईल/GF.