ACIT, Allahabad V. M/S Kesarwani & C0., Allahabad

MA 03/ALLD/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8583 (ITAT-ALLAHABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-08-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 13-05-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH ,ALLAHABAD (THROUGH VIRTUAL COURT), BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER MISCELLANEOUS APPLICATION (M.A. )NO. 03 /ALLD./2021 ARISING OUT OF ITA NO.425/ALLD/2014 AND C.O. NO. 20/ALLD/2014(IN ITA NO. 425/ALLD/2014) ASSESSMENT YEAR: 2005-06 THE JOINT CIT CENTRAL CIRCLE ALLAHABAD, U.P. V. M/S KESARVANI AND COMPANY SAHSON, ALLAHABAD, U.P. PAN: AADFK6562C (APPELLANT) (RESPONDENT) REVENUE BY: MR. A.K.SINGH, SR. DR ASSESSEE BY: MR. PRAVEEN GODBOLE, CA DATE OF HEARING: 13.08.2021 DATE OF PRONOUNCEMENT: 13.08.2021 O R D E R PER SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER: THIS MISCELLANEOUS APPLICATION(MA) IS FILED BY REVENUE SEEKING TO RECALL THE APPELLATE ORDER DATED 18.11.2020 PASSED BY INCOME TAX APPELLATE TRIBUNAL, ALLAHABAD, U.P. (HEREINAFTER CALLED THE TRIBUNAL) IN ITA NO. 425/ALLD/2014 FOR ASSESSMENT YEAR 2005-06 DISMISSING REVENUE APPEAL DUE TO LOW TAX EFFECT AND BEING COVERED BY CBDT CIRCULAR NO. 17/2019 , DATED 08 TH AUGUST , 2019, F.NO. 270/MISC.142/2007-ITJ(PT.). THE LD. DR AT THE OUTSET SUBMITTED THAT THE REVENUES APPEAL WAS DISMISSED BY TRIBUNAL ON THE GROUND THAT IT IS COVERED BY AFORESAID CBDT CIRCULAR OF 2019 ON THE GROUND THAT TAX EFFECT IN THIS REVENUES APPEAL IS MA NOS.03/ALLD/2021 2 LESS THAN RS. 50 LACS , BUT IT IS STATED BY LD. DR THAT TAX EFFECT IN REVENUES APPEAL IN ITA NO. 425/ALLD/2014 FOR AY: 2005-06 IS MORE THAN RS. 50 LACS AND THE CHART TO THAT EFFECT COMPUTING TAX EFFECT EXCEEDING RS. 50 LACS IS FILED BY DEPARTMENT IN A COMMUNICATION ADDRESSED TO TRIBUNAL IN F.NO. DY.CIT/CIRCLE- 1/MISC.(ITAT)/ALD/2021-22/41 DATED 29.07.2021. THE COPY OF SAID COMMUNICATION DATED 29.07.2021 THUS, THE LD. DR PRAYED THAT APPELLATE ORDER DATED 18.11.2020 IN ITA NO. 425/ALLD/2014 PASSED BY TRIBUNAL BE RECALLED AS THE SAME WAS NOT COVERED BY AFORESAID CBDT CIRCULAR GOVERNING LOW TAX EFFECT APPEALS FILED BY REVENUE. THE LD. COUNSEL FOR THE ASSESSEE AGREED WITH THE CONTENTIONS OF LD. DR AND STATED BEFORE THE BENCH THAT THE TAX EFFECT IN THIS REVENUES APPEAL IS MORE THAN RS. 50 LACS AND HENCE THE INSTANT APPEAL WAS NOT COVERED BY AFORESAID CBDT CIRCULAR AS THE APPEAL IS NOT A LOW TAX EFFECT APPEAL. THUS, IN NUT SHELL BOTH THE PARTIES STATED BEFORE THE BENCH THAT THE ORDER DATED 18.11.2020 PASSED BY TRIBUNAL IN ITA NO. 425/ALLD/2014 FOR AY: 2005-06 DISMISING REVENUES APPEAL ON THE GROUND OF LOW TAX EFFECT IS TO BE RECALLED AND THE AFORE- STATED APPEAL IS TO BE FIXED FOR HEARING BEFORE THE BENCH TO BE DECIDED ON MERITS. 2. AFTER HEARING BOTH THE PARTIES AS DISCUSSED IN PARA 1 , WE RECALL THE APPELLATE ORDER DATED 18.11.2020 PASSED BY TRIBUNAL IN ITA NO. 425/ALLD/2014 FOR AY: 2005- 06 DISMISSING REVENUES APPEAL , AND RESTORE THE REVENUE APPEAL IN ITA NO. 425/ALLD/2014 TO THE FILE OF TRIBUNAL FOR FRESH HEARING AND ADJUDICATION . IT IS ALSO PERTINENT TO MENTION THAT WHILE DISMISSING THE REVENUES APPEAL VIDE ORDER DATED 18.11.2020 , THE TRIBUNAL ALSO DISMISSED THE CROSS OBJECTION(C.O.) NO. 20/ALLD/2014 (ARISING OUT OF ITA NO. 425/ALLD/2014) FOR AY: 2005-06 FILED BY ASSESSEE ON THE GROUNDS THAT THE SAME HAS NOW BECOME INFRUCTUOUS OWING TO DISMISSAL OF REVENUES APPEAL , VIDE PARA 7 OF THE COMMON APPELLATE ORDER DATED 18.11.2020 PASSED BY TRIBUNAL . SINCE , NOW REVENUES APPEAL IS RESTORED TO THE FILE MA NOS.03/ALLD/2021 3 OF TRIBUNAL FOR FRESH HEARING AND ADJUDICATION , CONSEQUENTIALLY ASSESSEES AFORESAID C.O. ALSO STAND RESTORED. IT IS ALSO BROUGHT TO OUR NOTICE BY LD. COUNSEL FOR THE ASSESSEE THAT CROSS APPEALS FILED BY ASSESSEE FOR AY: 2005-06 IS PENDING ADJUDICATION BEFORE THE TRIBUNAL AND IS FIXED FOR HEARING BEFORE THE DIVISION BENCH(DB) ON 26.08.2021. THUS, THIS REVENUES APPEAL ITA NO. 425/ALLD/2014 AS WELL CO NO. 20/ALLD/2014 (ARISING OUT OF ITA NO. 425/ALLD/2014) FILED BY THE ASSESSEE , ARE ALSO FIXED FOR HEARING BEFORE DB ON 26.08.2021 . THE AFORESAID DATE OF HEARING IS ANNOUNCED IN OPEN COURT IN THE PRESENCE OF BOTH THE AND HENCE NO FRESH NOTICE OF HEARING SHALL BE SENT. WE ORDER ACCORDINGLY. 3 . IN THE RESULT, M.A. NOS. 03/ALLD/2021 ARISING OUT OF ITA NO. 425/ALLD/2014 FILED BY REVENUE FOR AY: 2005-06 STAND ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/08/2021 AT THE CONCLUSION OF HEARING IN THE PRESENCE OF BOTH THE PARTIES THROUGH VIDEO CONFERENCING. SD/- SD/- [VIJAY PAL RAO] [RAMIT KOCHAR] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 13 /04/2021 COPY FORWARDED TO: 1. APPELLANT THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-1, AAYKAR BHAWAN, 38, M G MARG, CIVIL LINES, ALLAHABAD, U.P. 2. RESPONDENT KESARWANI & COMPANY, SAHSON, ALLAHABAD, U.P. 3. CIT(A) , ALLAHABAD 4. CIT-ALLAHABAD, U.P. 5. DR SR. DR(ITAT), ALLAHABAD, BY ORDER ASSISTANT REGISTRAR MA NOS.03/ALLD/2021 4