DCIT, CHENNAI V. Empee Distilleries Ltd., CHENNAI

MA 101/CHNY/2020

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The case involves the Income Tax Department (Petitioner) and Empee Distilleries Ltd. (Respondent) concerning an assessment year 2007-08. The Department filed a Miscellaneous Petition against the Tribunal's earlier decision to dismiss their appeal due to low tax effect. The Department argued that the actual tax effect exceeded the monetary limit set by the CBDT, amounting to \\u20b9;55,93,172/-. The Tribunal acknowledged the oversight and recalled the previous order, directing a re-hearing of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135337 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 8 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 23-03-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 14-07-2020
• Laws Referred To: CBDT guidelines
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ एवं ŵी जी. मंजुनाथा, लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri G. Manjunatha, Accountant Member M.P. No.101/Chny/2020 [In I.T.A. No.1380/Chny/2017] Assessment Year: 2007-08 The Joint Commissioner of Income Tax, Corporate Circle 2(1), Chennai 600 034. Vs. M/s. Empee Distilleries Ltd., Empee Tower, No. 59, Harris Road, Pudupet, Chennai 600 002. [PAN:AAACE1687N] (Petitioner) (ŮȑथŎ/Respondent) Petitioner by : Shri P. Sajit Kumar, JCIT ŮȑथŎ की ओर से/Respondent by : Shri S. Sridhar, Advocate सुनवाई की तारीख/ Date of hearing : 24.03.2023 घोषणा की तारीख /Date of Pronouncement : 24.03.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: The Revenue has filed the present Miscellaneous Petition against the order passed by the Tribunal in I.T.A. No. 1380/Chny/2017 dated 14.10.2019 relevant to the assessment year 2007-08. 2. The ld. DR relied on the petition and submitted that in the instant case, the reopened assessment was completed on 30.03.2013 with the addition of ₹.1,22,99,285/- towards disallowance of sales promotion M.P. No.101/Chny/20 2 expenses and ₹.41,56,086/- towards disallowance of deferred revenue expenditure for which the tax effect would be ₹.41,80,518/- and ₹.14,12,654/-. Thus, the aggregate tax effect in this is at ₹.55,93,172/-, which is more than the monetary limit prescribed by the CBDT. Therefore, the Tribunal dismissing the appeal of the Revenue on low tax effect is a mistake apparent on record and prayed for recalling the order of the Tribunal dated 14.10.2019 and the same may be restored for fresh adjudication. 2. On the other hand, the ld. Counsel for the assessee fairly conceded the submissions of the ld. DR. 3. We have heard both the sides, perused the order of the Tribunal as well the petition filed by the Department. We find that the Tribunal, vide order dated 14.10.2019 dismissed the appeal due to the low tax effect, whereas, the actual tax effect was more than the monetary limit prescribed by the CBDT. Therefore, dismissing the appeal on low tax effect is a mistake apparent in the order of the Tribunal. Accordingly, we recall the order of the Tribunal dated 14.10.2019 and direct the Registry to post the appeal for hearing on regular course by issuing notice to both the parties. M.P. No.101/Chny/20 3 4. In the result, the MP filed by the Department is allowed. Order pronounced in the open Court on 24 th March, 2023 at Chennai. Sd/- Sd/- (G. MANJUNATHA) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 24.03.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.