DCIT, Circle-3(1)(1)., Ahmedabad V. M/s. N K Industries Ltd., Ahmedabad

MA 128/AHD/2021

AI Insights

The case involves the Income Tax Department (Revenue) seeking to recall an order dismissing their appeal against M/s. N.K. Industries Ltd. The original appeal was dismissed due to the low tax effect as per CBDT Circular No.17/2019. The Revenue argued that their case fell under an exception to this circular because the Revenue audit objection had been accepted by the Department. However, it was clarified that the audit objection pertained to an assessment under section 147 of the Income Tax Act, whereas the appeal in question was related to an order under section 154. Consequently, the court dismissed the Revenue's application, affirming that the appeal did not meet the criteria for exception under the circular.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133521 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 24-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-01-2023
• Assessment Year: 2006-2007
• Appeal Filed On: 11-08-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect; Tax effect
• Section: 147; 154

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘B’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER Misc. Application No.128/Ahd/2021 IN ITA No.132/Ahd/2019 DCIT, Cir.3(1)(1) Ahmedabad. Vs M/s.N.K. Industries Ltd. 7 th Floor Popular House Popular House Ashram Road Ahmedabad. PAN : AAACN 9376 P (Applicant) (Responent) Assesseeby : Shri Bandish Soparkar, AR Revenue by : Shri Atul Pandey, Sr.DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 2 0 / 0 1 / 2 0 2 3 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 2 5 / 0 1 / 2 0 2 3 आदेश/O R D E R PERANNAPURNA GUPTA, ACCOUNTANT MEMBER By this Misc. Application, the Revenue has sought recall of the order passed in the case of the assessee in ITA No.132/Ahd/ 2019 wherein the appeal of the Revenue was dismissed on account of low tax effect on account of CBDT Circular No.17/2019, pointing out that the appeal of the Revenue fell under the Exceptions to the applicability of the said CBDT Circular mentioned therein. The exception, as per the application, is that the case related to where Revenue audit objection had been accepted by the Department. MA No.128/Ahd/2021 2 A copy of the said audit objection dated 22.3.2010 has been filed before us. 2. In response to the above, the ld.counsel for the assessee stated that in lieu of the aforestated audit objection, reopening under section 147 of the Act was resorted to, and thereafter the order giving effect to the order of the Ld. CIT(A) was passed. This order passed under section 147 of the Act was subsequently rectified vide order passed under section 154 of the Act, against which the assessee had preferred appeal before the ld.CIT(A). The ld.CIT(A) had decided the issue in favour of the assessee, against which the present appeal of the Revenue was preferred. The ld.counsel for the assessee, therefore stated that Revenue audit objection related to the assessment framed under section 147 of the Act and not to the order passed under section 154 of the Act, in which proceedings the present appeal lay, and therefore, Revenue’s case did not fall in the exclusion as provided in clause 10(c) of the impugned CBDT Instruction. 3. The ld.DR fairly agreed with the fact that revenue audit objection was in respect of assessment framed under section 147 of the Act and not that under section 154 of the Act, in which proceedings the present appeal lays. 4. In view of the above, since admittedly the proceedings, in relation to which the Revenue has preferred appeal against the appellate order before us, is not in lieu of audit objection being accepted by the Department, the Revenue’s case does not fall in the Exception provided in clause 10(c) of the CBDT Circular no.23 of 2019 requiring withdrawal of the appeal of the Department where tax effect fall below the threshold limit. In view of the same, the MA No.128/Ahd/2021 3 MA filed by the Revenue merits no consideration, and is dismissed accordingly. 5. In the result, the Misc. Application of the Revenue is dismissed. Order pronounced in the Court on 25 th January, 2023 at Ahmedabad. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 25 /01/2023