The ITO, Ward-2(1)(2), Ahmedabad V. Gujarat Cypromet Ltd., Mumbai

MA 113/AHD/2020

AI Insights

The case involves a Miscellaneous Application by the Revenue against Gujarat Cypromet Ltd., concerning an earlier Tribunal order which dismissed an appeal based on the tax effect being below Rs. 50 lakhs. The Revenue argued that the actual tax effect was Rs. 1,23,96,874, significantly higher than previously considered. The Tribunal, upon reviewing the new information and the detailed quantification provided by the Revenue, decided to recall the earlier order and scheduled a new hearing for the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125329 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-01-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 05-01-2023
• Assessment Year: 2002-2003
• Appeal Filed On: 25-05-2020
• Laws Referred To: CBDT Circular No. 17 of 2019 dated 08.08.2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER & SHRI WASEEM AHMED, ACCOUNTANT MEMBER M. A . N o . 11 3/ A h d/ 20 20 ( I n I TA N o . 9 32 /A h d/2 0 1 6) ( A s se ss m e nt Y e a r : 20 02- 0 3 ) I T O War d- 2 ( 1 ) (2 ), Ah me da bad V s . G uj ar a t C yp r o m e t Ltd . 37 , 5 t h F lo or , O nl lo k er B ui ld in g, 14 , S ir P hi r o z e S ha h , Me ht a R o a d, F o r t, M u m ba i 81 / 82 , M a ha la x mi V I I I, I yav a , Sa nan d- V i ra mg a m Hi g h w a y, Sa nan d, D is t. A h me dab ad [P AN N o.A A AG G 5 55 91 R] (Appellant) .. (Respondent) Appellant by : None Respondent by : Shri Urjit Shah, Sr. D.R. D a t e of H ea r i ng 06.01.2023 D a t e of P r o no u n ce me nt 11.01.2023 O R D E R PER Ms. SUCHITRA KAMBLE - JM: This Miscellaneous Application is filed by the assessee in respect of the order dated 18.11.2019 passed by the Tribunal. 2. At the time of hearing none appeared on behalf of the assessee despite giving notice and the notice was not return back hence, the services completed. 3. The Ld. D.R. submitted that the Hon’ble Tribunal dismiss the Revenue’s appeal on the ground that the tax effect on the dispute issue is not exceeding Rs. 50 lakhs and applied the CBDT Circular No. 17 of 2019 dated 08.08.2019. The Ld. D.R. submitted that the tax effect in the present appeal comes to Rs. 1,23,96,874/-. The details of which are as under: M.A No.113/Ahd/2020 (in ITA No. 932/Ahd/2016) ITO vs. Gujarat Cypromet Ltd. Asst.Years–2002-03 - 2 - “C. Difference between (A) and (B) (contested before the Hon’ble ITAT vide ITA no. 932/Ahd/2016) Rs. 3,47,25,138/- Tax effect on the above said GP relief granted to the assessee by the Ld. CIT(A) and which was contested before the Hon’ble ITAT vide ITA no. 932/Ahd/2016 is as under: 1. Tax @ 35% = 1,21,53,798/- 2. SC @ 2% = 2,43,075/- 3. Total tax effect- 1,23,96,874/- ” 4. We have heard the Ld. D.R. and perused all the relevant material available on record. From the perusal of the grounds of appeal as well as the quantification given by the Ld. D.R. / ITO vide letter dated 04.01.2023 the total tax effect comes to around 1,23,96,874/- which is more than 50 lakhs and thus, the CBDT Circular dated 08.08.2019 will not be applicable in the present case. The order dated 18.11.2019 is recalled and the Registry is directed to placed the appeal for hearing after giving notice to both the parties in due course. The appeal may be listed on 20.02.2023. 5. In the result, the Miscellaneous Application filed by the Revenue is allowed. This Order pronounced in Open Court on 11/01/2023 Sd/- Sd/- (WASEEM AHMED) ACCOUNTANT MEMBER (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 11/01/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad