ACIT, CIRCLE-1, ERODE V. PALLAVA TEXTILES PRIVATE LIMITED , PALLIPALAYAM

MA 128/CHNY/2023

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The case involves the Assistant Commissioner of Income Tax, Circle 1, Erode as the petitioner and M/s. Pallava Textiles Private Limited as the respondent. The Revenue filed a Miscellaneous Petition seeking to recall the Tribunal's order which had deleted a penalty imposed under section 270A for the assessment year 2017-18. The Tribunal had previously ruled that the disallowance of expenditure, being an estimation, did not amount to under-reporting of income. The Revenue argued that this was a mistake apparent in the order, but the Tribunal found no such mistake and dismissed the petition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135386 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 18-08-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 274

Judgement Text

आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ एवं ŵी मंजुनाथा, जी., लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri Manjunatha, G. Accountant Member M.P. No. 128/Chny/2023 [In I.T.A. No.862/Chny/2022] Assessment Year: 2017-18 The Assistant Commissioner of Income Tax, Circle 1, Erode. Vs. M/s. Pallava Textiles Private Limited, 27-C, Sankari Bye Pass Road, Pallipalayam – 638 006, Tamil Nadu. [PAN:AABCP9105F] (Petitioner) (ŮȑथŎ/Respondent) Petitioner by : Shri D. Hema Bhupal, JCIT ŮȑथŎ की ओर से/Respondent by : None सुनवाई की तारीख/ Date of hearing : 22.09.2023 घोषणा की तारीख /Date of Pronouncement : 22.09.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: By means of present Miscellaneous Petition, the Revenue seeks to recall the order passed by the Tribunal in I.T.A. No. 862/Chny/2022 dated 10.03.2023 relevant to the assessment year 2017-18. 2. By referring to the petition, the ld. DR has submitted that the order of the Tribunal in allowing the appeal by deleting the penalty levied under section 270A of the Income Tax Act, 1961 [“Act” in short] M.P. No.128/Chny/23 2 holding that the disallowance of expenditure cannot be said that it is an under-reporting of the income is a mistake apparent in the order of the Tribunal and pleaded for recalling and adjudicating the appeal afresh. 2. When the miscellaneous petition was taken up for hearing, none appeared on behalf of the assessee. Hence, we proceed to decide the petition on merits after hearing the ld. DR. 3. We have heard the ld. DR, perused the petition as well as order passed by the Tribunal dated 10.03.2023. In the grounds of appeal, the assessee has mainly challenged that no penalty can be imposed for the disallowance made on estimation basis. Before the Assessing Officer, against the notice issued under section 274 r.w.s. 270A of the Act, in it written submissions, the assessee has stated that any estimated income added at the time of assessment does not fall within the purview of under-reported income warranting proceedings under section 270A of the Act. The same submissions were reiterated before the ld. CIT(A) and grounds have been raised before the ITAT. However, the Department has not filed any detailed written submissions as to whether the disallowance made by the Assessing Officer was on an estimate basis or under-reporting. Based on the M.P. No.128/Chny/23 3 grounds of appeal and materials available on record, the Tribunal has adjudicated the appeal on merits after heard the ld. DR. In view of the above facts and circumstances, we find no mistake apparent in the order passed by the Tribunal dated 10.03.2023 and accordingly, the miscellaneous petition filed by the Revenue is dismissed. 4. In the result, the MP filed by the Revenue is dismissed. Order pronounced in the open Court on 22 nd September, 2023 at Chennai. Sd/- Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 22.09.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF.