The DCIT, Circle-3(1)(1), Ahmedabad V. M/s. Oasis Textile Ltd, Ahmedabad

MA 12/AHD/2022

AI Insights

The case involves the Revenue's Miscellaneous Application seeking to recall an ITAT order in the case of Oasis Textiles Ltd., where the tax effect was initially considered below the threshold for appeal as per CBDT Circular No. 17/2019. The Revenue argued that the tax effect actually exceeded Rs. 50 lakhs, amounting to Rs. 52,55,688/-, and thus the case should not have been dismissed on the grounds of low tax effect. The ITAT, upon reviewing the application and the circumstances, decided to recall the previous order and restore the appeal for a detailed examination on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134515 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-01-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-10-2022
• Assessment Year: 2004-2005
• Appeal Filed On: 27-04-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण, अहमदाबाद ᭠यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ A’’ BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER And SHRI WASEEM AHMED, ACCOUNTANT MEMBER M.A No.12/Ahd/2022 In आयकर अपील सं./In ITA No. 2080/Ahd/2018 िनधाᭅरण वषᭅ/Asstt. Year: 2004-2005 I.T.O, Ward-3(1)(1), Ahmedabad. Vs. M/s. Oasis Textiles Ltd.(Formerly known as Unipon(I) Ltd.), 13-14, Radhakunj Society, B/h. Kamla Kamdhenu Hall, Memnagar, Ahmedabad. PAN: AAACU1997K (Applicant) (Respondent) Revenue by : Shri Urjit Shah, Sr. D.R. Assessee by : None सुनवाई कᳱ तारीख/Date of Hearing : 14/10/2022 घोषणा कᳱ तारीख /Date of Pronouncement: 04/01/2023 PER WASEEM AHMED, ACCOUNTANT MEMBER: The Revenue by way of this Miscellaneous Application is seeking to recall of the order passed by the ITAT in group case bearing ITA No. 2080/Ahd/2018 for A.Y. 2004-05 vide order dated 25/10/2021 on the ground that tax effect involved in the appeal of the Revenue is more than Rs.50 lakhs. M.A No.12/AHD/2022 In ITA No.2080/Ahd/2018 Asstt. Year 2004-05 2 2. The Revenue has filed misc. application pleading as under: Kindly refer to the appellate order dated 25.10.2021 in ITA No. 2080/Ahd/2018 in the case of Oasis Textiles Ltd, PAN: AAACU1997K for the Assessment Year 2004-05. 2. In this case, while the assessment proceedings for A.Y. 2005-06 was in progress, the assessee had approached the Hon'ble settlement Commission for settling the assessment and disclosed additional income of Rs.1,46,50,000/- for A.Y. 2004-05. Further the assessee had claimed set off of carried forward business losses/depreciation loss of earlier years against the additional income disclosed of Rs.1,46,50,000/-. 2.1 The Hon'ble 1TSC, Mumbai abated the proceedings u/s 245HA of the Act and rejecting the application of the assessee. Aggrieved by the order u/s 245HA of the Act passed by the ITSC, Mumbai the assessee had filed petition before the Hon'ble Gujarat High Court. The Hon'ble Gujarat High Court has passed final order on 16,04.2014 upholding the abatement of the proceedings 'by the Settlement Commission. 2.2 The assessee was offered additional income before the Hon'ble Settlement Commission and not in the original return of income filed. The order of the Hon'ble ITSC dated 17.12.2007 had been passed U/S.245HA of the Act. In Sec.245HA or Sec.245C of the Act, no such provision exists for allowing set off of brought forward losses against additional income offered before ITSC. Therefore, the AO has disallowed the claim of the assessee while giving effect to the order of the Hon'ble High Court dated 16.04.2014 holding that the same is not in accordance with the provisions of Sec.72 of the I.T. Act 3. Aggrieved by the addition, the assessee preferred an appeal before CIT(A). The CIT(A) had allowed the appeal of the assessee. 4. Thereafter, the Revenue had preferred an appeal before the Hon'ble ITAT against the order of the CIT(A). The Hon'ble ITAT has dismissed the appeal of the Revenue stating that as per the CBDT Circular No. 17/2019 dated 08.08.2019 the tax effect is not exceeding of Rs. 50 Lakhs. 4.1 For the A.Y. 2004-05 the tax effect is comes to Rs.52,55,688/-, which is above the monetary limits as prescribed by vide CBDT Circular No. 17/2019 dated 08.08.2019. Hence, the order of the Hon'ble ITAT is not acceptable. Thus it is requested to restore the order passed by the Hon'ble ITAT and decide the case on merits. 5. In view of above, this Miscellaneous Application is being filed to draw attention of the Hon'ble ITAT for the issue discussed above. 6. This Miscellaneous Application is being filed with the prior approval of the Pr. CIT-3, Ahmedabad vide his letter No.Pr.CIT-3/AHD/ITAT/MA-APPROVAL/2022-23 dated 25.04.2022 M.A No.12/AHD/2022 In ITA No.2080/Ahd/2018 Asstt. Year 2004-05 3 3. The Ld. DR before us submitted that the tax effect involved in the dispute exceeds Rs.50 lacs, precisely amounting to Rs.52,55,688/- and therefore the same cannot be dismissed on account of low tax effect by virtue of the CBDT Circular bearing No. 17/2019 dated 08/08/2019. Accordingly the Ld. DR prayed to recall the order passed by the ITAT for fresh adjudication on merit as the same has been dismissed due to low tax effect by the ITAT inadvertently. 4. On the other hand, none appeared on behalf of the assessee despite of the fact that several opportunities were afforded to the assessee. 5. We have heard the Ld. DR. and perused the materials available on record. After going through the Misc. Application of the Revenue, and the impugned order, we find merit in the reasons given by the Revenue. Therefore, we are inclined to recall the impugned order dated 25/10/2021 (supra), and restore the appeal of the Revenue to its original number. The registry is directed to fix the appeal in ordinary in course of time under intimation to both the parties. 6. In the result, Miscellaneous Application filed by the Revenue is allowed. Order pronounced in the Court on 04/01/2023 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 04/01/2023 Manish