ACIT, Circle-1(1), Chandigarh V. M/s Knox Life Sciences, Chandigarh

MA 12/CHANDI/2023

AI Insights

The case involves the Revenue's Miscellaneous Application against the order of the Coordinate Bench which had dismissed the Revenue's appeal due to low tax effect. The Revenue contended that the case should be reconsidered as it falls under the exceptions of the CBDT Circular, specifically due to accepted audit objections. The assessee argued that the audit objections were already accepted and a revised return was filed, thus not falling under the exceptions of the Circular. The Tribunal decided to recall the earlier order and scheduled a new hearing, emphasizing that the audit objections and subsequent actions by the assessee do not exclude the case from the exceptions outlined in the CBDT Circular.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135467 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-08-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-08-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 13-07-2023
• Other Referred Cases: PCIT vs Aarham Softtonics 412 ITR 623
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect; Revised return
• Section: 148; 80IC; 80IC

Judgement Text

आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “ए” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH ᮰ी आकाश दीप जैन, उपा᭟यᭃ एवं ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM Miscellaneous Application No. 12/Chd/2023 In आयकर अपील सं./ ITA NO. 643/Chd/2022 िनधाᭅरण वषᭅ / Assessment Year : 2013-14 The ACIT Circle-1(1) Chandigarh बनाम M/s Knox Life Sciences, 421, Industrial Area-II Chandigarh ᭭थायी लेखा सं./PAN NO: AAHFK7737P अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri Tejmohan Singh, Advocate राज᭭व कᳱ ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 25/08/2023 उदघोषणा कᳱ तारीख/Date of Pronouncement : 28/08/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M: The present miscellaneous application has been filed by the Revenue against the order passed by the Coordinate Bench dt. 28/03/2023 in ITA No. 643/Chd/2022 for Assessment Year 2013-14. 2. It was stated by the ld DR that the Coordinate Bench vide its order dt. 28/03/2023 has dismissed the appeal of the Revenue on account of low tax effect. However the instant case falls under para 10(c) of the CBDT Circular as the audit objection raised by the Revenue Audit has been accepted. It was accordingly submitted that the order so passed by the Coordinate Bench may be recalled and the matter be heard on merits of the case. 3. The Ld. AR was heard who has submitted that in fact, it is a case where the assessee has accepted the audit objection and has filed the revised return 2 of income therefore the case of the assessee doesn’t falls under the exception so carved out in the CBDT Circular as the said exception talks about the audit objection which have been raised and accepted by the Revenue Department. 4. It was further submitted that thereafter, the assessee moved a rectification application, relying on the Hon’ble Supreme Court decision in case of PCIT vs Aarham Softtonics 412 ITR 623, which was rejected and against which, the ld CIT(A) allowed the relief to the assessee and thereafter, on account of low tax effect, the appeal of the Revenue was dismissed by the Tribunal. It was accordingly submitted that even where the appeal of the Revenue is recalled, the matter is already covered in favour of the assessee by the decision of the Hon’ble Supreme Court and which has recently been followed in assessee’s own case for A.Y 2017-18 (ITA No. 634/CHD/2022 dated 09/06/2023) where the matter has been decided by the Tribunal in favour of the assessee. 5. In her rejoinder, the Ld. DR submitted that it is a case where the Revenue audit objection were raised vide audit memo dt. 31/08/2015 which was accepted by the Revenue and thereafter notice under section 148 was issued and only in response to notice, the assessee filed its return of income revising its claim for deduction under section 80IC of the Act. It was accordingly, submitted that the case of the assessee clearly falls under the exception 10(c) of the CBDT Circular. 6. After hearing both the parties and perused the material available on the record, we find that the case of the assessee falls under exception 10(c) of the CBDT Circular as the audit objection raised by the Revenue audit has been accepted by the Revenue and therefore any consequential action by the assessee by filing the return of income in response to notice under section 148 does not take the case out of the exception so carved out in the said CBDT Circular. In light of the same the order so passed by the Coordinate Bench 3 wherein the appeal of the Revenue was dismissed on account of low tax effect is hereby recalled and the matter is fixed for hearing on 12/09/2023. As intimated in the open Court, separate notice is dispensed with. As far as ld AR submissions on merits of the case, the ld AR/assessee is at liberty to raise the same at the time when the matter will be heard on merits. 7. In the result, Miscellaneous Application filed by the Revenue is allowed. Order pronounced in the open Court on 28/08/2023 Sd/- Sd/- आकाश दीप जैन िवŢम िसंह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा᭟यᭃ / VICE PRESIDENT लेखा सद᭭य/ ACCOUNTANT MEMBER AG Date: 28/08/2023 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant / 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar