Deputy Commissioner of Income Tax, Madurai V. Sundaram Textiles Ltd., Madurai

MA 117/CHNY/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 7914 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 03-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS R ANITA
• Assessee Lawyers: R SRINIVASAN
• Keywords: Audit objection; Period of limitation; Tax effect

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER M.P. NO. 117/CHNY/2017 [IN I.T.A. NO. 1277/CHNY/2016] ASSESSMENT YEAR : 2007-08 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2, MADURAI. VS. M/S. SUNDARAM TEXTILES LTD., LAKSHMI BUILDINGS, USILAMPATTI ROAD, KOCHADAI, MADURAI 625 010. [PAN:AACCS1479A] ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : MRS. R. ANITA, JCIT / RESPONDENT BY : SHRI R. SRINIVASAN, ADVOCATE / DATE OF HEARING : 26.10.2018 /DATE OF PRONOUNCEMENT : 31.12.2018 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: BY MEANS OF PRESENT MISCELLANEOUS PETITION, THE REVENUE SEEKS TO RECALL THE ORDER PASSED BY THE TRIBUNAL IN I.T.A. NO.1277/MDS/2016 DATED 20.07.2017 FOR THE ASSESSMENT YEAR 2007-08. BY REFERRING TO THE PETITION, THE LD. DR SUBMITTED THAT WITHOUT GOING INTO THE MERITS OF THE CASE, THE TRIBUNAL DISMISSED THE APPEAL OF THE REVENUE ON THE GROUND THAT THE TAX EFFECT IS LESS THAN .10 LAKHS. SINCE THE CASE FALLS IN THE EXEMPTED CATEGORY OF THE CBDTS CIRCULAR VIDE 21/2015 DATED 10.12.2015 BY WAY OF AUDIT OBJECTION RAISED BY THE REVENUE AUDIT PARTY, THE TRIBUNAL OUGHT TO HAVE ADJUDICATED THE APPEAL M.P. NO. 117/CHNY/17 2 ON MERITS AND THUS, THERE IS A MISTAKE APPARENT RECORD AND PLEADED FOR RECALLING THE ORDER DATED 20.07.2016 AND ADJUDICATION OF THE APPEAL ON MERITS. 2. PER CONTRA, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AS PER THE PRESENT PRACTICE FOLLOWED BY THE TRIBUNAL, THE APPEAL ORDER PRONOUNCED IN THE OPEN COURT AND THE TIME LIMIT FOR FILING OF MISCELLANEOUS PETITION SHALL BE RECKONED FROM THE END OF THE MONTH IN WHICH THE ORDER WAS PASSED, IS SIX MONTHS FOR SEEKING RECALL I.E., PARTIES ARE ENTITLED TO SEEK RECTIFICATION OF THE SAID ORDER WITHIN SIX MONTHS UNDER SECTION 254(2) OF THE INCOME TAX ACT, 1961, AS AMENDED W.E.F. 01.06.2016. THE SAID PROVISION EMPOWERS THE TRIBUNAL TO SUO MOTO RECTIFY ITS MISTAKE OR ENABLE THE PARTIES TO THE ORDER TO SEEK RECTIFICATION WITHIN THE PERIOD OF LIMITATION I.E., SIX MONTHS IN WHICH THE ORDER WAS PASSED. IN THE INSTANT CASE, THE ORDER WAS PASSED/ PRONOUNCED ON 20.07.2016 AND FROM THE END OF THE MONTH; THE PERIOD OF SIX MONTH EXPIRES ON 31.01.2017. THE REVENUE FILED THE PRESENT MISCELLANEOUS PETITION ON 03.04.2017 RECALLING THE ORDER OF THE TRIBUNAL DATED 20.07.2016, WHICH IS NOT MAINTAINABLE. 4. WE HAVE HEARD RIVAL CONTENTIONS. WE HAVE ALSO CONSIDERED THE CONDONATION PETITION FILED BY THE DEPARTMENT. THE TIME LIMIT FOR FILING OF MISCELLANEOUS PETITION STANDS ENDED BY 31.01.2017. SINCE THE REVENUE FILED THE PRESENT PETITION ON 03.04.2017, WHICH IS CLEARLY BEYOND THE TIME LIMIT M.P. NO. 117/CHNY/17 3 ALLOWED UNDER THE ACT, WE ARE OF THE CONSIDERED OPINION THAT THE PETITION FILED BY THE REVENUE BEFORE THE TRIBUNAL IS NOT MAINTAINABLE. ACCORDINGLY, THE PETITION FILED BY THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE M.P. FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THE 31 ST DECEMBER, 2018 AT CHENNAI. SD/- SD/- (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 31.12.2018 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.