ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-3, Mirzapur V. M/S. J.P.YADAV , Sonebhadra

MA 1/ALLD/2020

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 9422 (ITAT-ALLAHABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-09-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 12-02-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE WHEN THIS APPEAL WAS CALLED
• Keywords: Audit objection; Tax effect
• Section: 254(2)

Judgement Text

MA No. 01/Alld/2020 arising out of ITA No. 319/ALLD/2018 ACIT v. J P Yadav Assessment Year: 2011-12 1 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.01/Alld/2020 [Arising out of ITA No.319/ALLD/2018] Assessment Year: 2011-12 A.C.I.T., Circle-3, Mirzapur, U.P. v. M/s. J.P. Yadav VIP Road, Ohra, Sonebhadra, U.P. PAN: AAHFM7714J (Appellant) (Respondent) Appellant by: Mr. A. K. Singh , Addl. CIT Respondent by: None Date of hearing: 17.09.2021 Date of pronouncement: 17.09.2021 O R D E R PER: SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER: This Miscellaneous Application(MA) bearing MA No. 01/Alld./2020 arising out of ITA no. 319/Alld/2018 for assessment year(ay) 2011-12 has been filed by Revenue on the grounds that Revenue appeal in ITA no. 319/Alld/2018 for ay: 2011-12 was dismissed by Income-Tax Appellate Tribunal, Allahabad, U.P.,vide appeallate orders dated 20.11.2019, on the grounds that the tax effect in the Revenue appeal is less than Rs. 50 lacs and hence the appeal is covered by CBDT Circular No. 17/2019 , dated -8 th August, 2019, F.No. 270/Misc.142/2007-ITJ(Pt.) and is liable to be dismissed. The MA No. 01/Alld/2020 arising out of ITA No. 319/ALLD/2018 ACIT v. J P Yadav Assessment Year: 2011-12 2 Revenue has filed this MA on the grounds that the Revenue appeal was not covered by CBDT Circular as this appeal falls under one of the exception carved out in the CBDT circulars governing disposal of low tax Revenue Appeals, and hence there is a mistake apparent from record in tribunal’s order dated 20.11.2019 , which appellate order of the tribunal needs to be recalled for fresh hearing before the Division Bench of ITAT, Allahabad Bench, Allahabad. None appeared for assessee when this appeal was called for hearing, while ld. DR made elaborate arguments in support of Revenue’s MA. It is stated by ld. DR before the Bench that there was a Revenue audit objection , which was accepted by Department , and hence the case of the assessee was reopened u/s 147/148 of the Income-tax Act, 1961. The ld. DR has placed on record Revenue audit objections , which are placed in file. The ld. DR has also filed letter dated 12.01.2016 in F.No. ITO/WIII(5)/Son/MZP/Revenue Audit/2014-15, wherein in this letter which is written by ld. ITO to ld. PCIT, Allahabad, a the Revenue audit objections stood accepted by the ITO. The said letter is placed in file. The ld. DR also drew our attention to ground of appeals filed by Revenue before tribunal in ITA No. 319/Alld/2018, wherein , inter-alia, it is stated as under: “ It is most humbly mentioned that though the quantum of tax effect is below the prescribed limit of Rs. 20,00,000/- for filing of appeal before Hon’ble ITAT as per CBDT Circular No. 03/2018 dated 11.07.2018 , however, the same is covered under exceptions clause 10(c) of the above circular.” Our attention was also drawn by ld. DR to CBDT Circular Number 17/2019 , dated 08 th August, 2019, wherein by way of amendment to Circular No. 03/2018 , the monetary limit for filing Revenue appeal before tribunal for reducing litigation, has been enhanced to Rs. 50 lacs from its earlier limit of Rs. 20 lacs. The Circular No. 03/2018 , dated 11.07.2018, at para 10(c) clearly stipulates that adverse judgments relating to issues where Revenue audit objection in the case has been accepted by the Department, shall be contested on merits notwithstanding that the tax effect entailed is less than the monetary limit specified in the said circular or there is no tax effect. Thus , by relying on the MA No. 01/Alld/2020 arising out of ITA No. 319/ALLD/2018 ACIT v. J P Yadav Assessment Year: 2011-12 3 evidences placed on record as detailed above, we are of the considered view , that there is a mistake apparent from record in the appellate order dated 20.11.2019 passed by tribunal in ITA no. 319/Alld/2018 for ay: 2011-12 which is covered u/s 254(2) of the 1961 Act , and hence the said appellate order dated 20.11.2019 needs to be recalled for fresh hearing before the Division Bench of the tribunal. Hence, we direct that the appellate order dated 20.11.2019 in ITA No. 319/Alld/2018 for ay: 2011-12 be recalled and placed before the Division Bench of the tribunal, for fresh hearing. The Registry is directed to issue fresh notice to both the parties for fresh hearing before the Division Bench , in regular course . We order accordingly. 2. In the result, M.A. No. 01/Alld/2020 arising out of ITA no. 319/Alld/2018, for ay: 2011-12 is allowed. Order pronounced on 17/09/2021 at Allahabad in the open Court through Video Conferencing mode Sd/-/-Sd/- Ss Sd/-/- Sd/- [VIJAY PAL RAO] [RAMIT KOCHAR] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17 /09/2021 Allahabad Copy forwarded to: 1. Appellant – The ACIT, Mirzapur, U.P. 2. Respondent – M/s. J.P. Yadav,VIP Road, Obra, Sonebhadra, U.P. 3. CIT(A) , Allahabad 4. CIT, Allahabad, U.P. 5. Sr. DR, ITAT, Allahabad //True Copy// MA No. 01/Alld/2020 arising out of ITA No. 319/ALLD/2018 ACIT v. J P Yadav Assessment Year: 2011-12 4 By order Assistant Registrar