The ITO, Ward-3(2)(10), Ahmedabad V. M/s. Sarvottam Steel Industries, Ahmedabad

MA 115/AHD/2020

AI Insights

The case involves the Income Tax Department (Revenue) appealing against a decision of the Income Tax Appellate Tribunal which had dismissed their earlier appeal due to low tax effect as per CBDT Circular No. 17 of 2019. The Revenue argued that the dismissal was inappropriate as the case involved information from the Central Excise Department, specifically under the parameters of Para 10(e) of Circular No. 03/2018, which should be contested regardless of the tax effect. The Tribunal agreed with the Revenue's position, recalling the previous order and restoring the appeal for a fresh hearing on its merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125037 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-02-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-02-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 27-05-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 147; 148; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & MS. SUCHITRA KAMBLE, JUDICIAL MEMBER M. A . N o . 11 5 / A h d/ 20 20 ( In I TA N o. 2 24 2/ A h d/ 20 16 ) ( A s se ss m e nt Y e a r : 20 11- 1 2 ) I T O War d- 3 ( 2 ) (1 0) , Ah me da bad V s . M/ s . Sa rv ot ta m St e el I n d u s t rie s Pl ot N o . 54 /2 /P , GI D C E s ta te , Ph a s e - 1 , V a tv a, A h m e d ab ad [ P AN N o. A B HF S3 8 6 2 L ] (Appellant) .. (Respondent) Appellant by : Shri Gaurav Nahta, A.R. Respondent by : Shri Sanjaykumar, Sr. D.R. D a t e of H ea r i ng 10.02.2023 D a t e of P r o no u n ce me nt 15.02.2023 O R D E R PER SUCHITRA KAMBLE - JM: This Miscellaneous Application is filed by the Revenue in respect of the order dated 17.09.2019 passed by the Tribunal. 2. The Ld. D.R. submitted that the Tribunal dismiss the appeal filed by the Revenue in respect of CBDT Circular No. 17 of 2019 that is Low Tax Effect. But from the perusal of records it can be found that the case of the assessee for A.Y. 2011-12 was reopened under Section 147 of the Income Tax Act by issuing notice under Section 148 of the Act on 17.01.2014 which is based on the information received from Central Excise Department. Thus, as per Circular No. 03/2018 dated 11.07.2018 which was thereafter vide Notification No. 279/Misc. 142/2007-ITJ (Pt) M.A No.115/Ahd/2020 (in ITA No. 2242/Ahd/2016) ITO vs. M/s. Sarvottam Steel Industries Asst.Years–2011-12 - 2 - dated 20.08.2018 notified to Amendment to Para 10 of the Circular No. 3 of 2018 dated 11.07.2018. The said notification dated 20.08.2018 has categorically mentioned that the issues which are coming under the parameters of Para 10 of the said circular has to be contested on merits notwithstanding the tax effect entailed is less than the monetary limits. The said Para 10(e) has categorically mentioned that where addition is based on information received on external source in the nature of law enforcement agencies such as CBI / ED / DRI / SFIO / Directorate General of GST Intelligence (DGGI) the same should be contested. Therefore, the Ld. D.R. submitted that the matter may be recalled for fresh hearing on merit. 3. The Ld. A.R. submitted that since the CESTAT vide order dated 25.04.2022 decided the issue in favour of the assessee the Miscellaneous Application does not survive. The Ld. A.R. submitted that this Miscellaneous Application may be dismissed. 4. We have heard both the parties and perused all the relevant material available on record. It is undisputed fact that the assessee’s case was reopened in respect of information received from Central Excise Department (DGGI) and therefore, the said matter comes in the exceptions to Circular No. 03/2018 Para 10(e). Therefore, the present Miscellaneous Application filed by the Revenue appears to be proper and we are recalling order dated 17.09.2019. The appeal is restored for hearing afresh on merit. The Registry is directed to place the appeal for M.A No.115/Ahd/2020 (in ITA No. 2242/Ahd/2016) ITO vs. M/s. Sarvottam Steel Industries Asst.Years–2011-12 - 3 - hearing on 22.02.2023. Both the parties are informed in open court. Hence, no notice is required. 5. In result, the Miscellaneous Application filed by the Revenue is allowed. This Order pronounced in Open Court on 15/02/2023 Sd/- Sd/- (ANNAPURNA GUPTA) ACCOUNTANT MEMBER (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 15/02/2023 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 1. Date of dictation 14.02.2023 2. Date on which the typed draft is placed before the Dictating Member 14.02.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .02.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .02.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 15.02.2023 7. Date on which the file goes to the Bench Clerk 15.02.2023 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................