WTO, Ward-14(1), Hyd, Hyderabad V. Y. Ravichand, Hyd, Hyderabad

MA 129/Hyd/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9921 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-10-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 20-10-2022
• Assessment Year: 2004-2005
• Appeal Filed On: 16-08-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect; Tax effect

Judgement Text

MA Nos 129 138 139 140 and 141 Y Ravichand Hyderabad Page 1 of 4 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ B ‘ Bench, Hyderabad Before Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member M.A.Nos. 129,138, 139, 140 & 141/Hyd/2022 (Arising out of ITA Nos.WTA Nos.1 to 5/Hyd/2016) Assessment Years:2004-5 to 2008-09 W.T.O Ward-14(1) Hyderabad Vs. Shri Y. Ravi Chand Hyderabad PAN:AAOPY6329G (Appellant) (Respondent) Assessee by : Shri Shashank Dundu, Advocate Revenue by: Mrs. Reema Yadav, DR Date of hearing: 21/10/2022 Date of pronouncement: 21/10/2022 ORDER Per R.K. Panda, A.M The Revenue through these Miscellaneous Applications requests the Tribunal to recall the order passed by it dismissing the appeals filed by the Revenue on account of low tax effect. 2. The learned DR referring to the contents of the M.A drew the attention of the Bench to the same which read as under: “Sub: Filing of Misc. Application in the case of Sri Y. Ravi Chand (PAN: AAOPY6329G) for the A.Ys. 2004-05 to 2008-09- Reg. Ref: 1) WTA Nos. 1 to 5/Hyd/2016, dt. 07-06-2022 (Copy enclosed) 2) Pr.CIT-1, Hyderabad letter in F.No. Pr.CIT-1/Hyd/ITAT/2022-23, dt.11- 08-2022 (copy enclosed) *** MA Nos 129 138 139 140 and 141 Y Ravichand Hyderabad Page 2 of 4 Kind reference is invited to the above. The Hon'ble ITAT vide order cited at (1) above, dismissed the appeals filed by the Revenue as not maintainable on account of low tax effect stating that if the Revenue at any point of time finds that these appeals are not covered by the circular issued by the CBDT, the Revenue is at liberty to move appropriate application before the Tribunal for restoration of these appeals. It is submitted that these cases fall under exception mentioned at para 10(c) of Circular No.3/2018, dt.11-07-2018. The audit objection raised by the RAP was accepted by the Department. In view of the above, Vide letter referred at (2) above, the Pr. CIT-1, Hyderabad has accorded approval to file miscellaneous application before the Hon'ble ITAT. It is submitted that along with the application (in Triplicate) Pr.CIT's approval letter and Hon'ble ITATs order are enclosed herewith. In view of the above, the Hon'ble !TAT is requested to kindly recall the orders in the following cases: S.No Name of the case A.Y WTA Nos. 1 to 5/Hyd/2016, dated 07.06.2022 1 Shri Y. Ravi Chand 2004-05 2 2005-06 3 2006-07 4 2007-08 5 2008-09 3. The learned DR also filed a copy of the report sent by the Office of the Pr.CIT, where it has been mentioned as under: “F.No. Pr.CIT-1/Hyd/ITAT/2022-23 dt. 11.08.2022 To The Income Tax Officer Ward 14(1) Hyderabad Sir, Sub: Decision of the Pr.Chief Commissioner of Income Tax, Hyderabad in the case of Shri Y. Ravi Chand, for the A.Y 2004-05 to 2008-09 – Filing of appeal before High Court – communication – reg. Ref: 1) Scrutiny Report received on 29.7.2022. I am directed to communicate the decision of the Pr. Chief Commissioner of Income Tax in the above referred case as under: S.No ITA No A.Y Decision 1 WTA Nos.1 to 5/Hyd/2016 dated 7.6.2022 2004-05 2005-06 2006-07 2007-08 2008-09 No further appeal in view of low tax effect. Miscellaneous Application as proposed may be filed before ITAT MA Nos 129 138 139 140 and 141 Y Ravichand Hyderabad Page 3 of 4 4. Referring to the contents of the M.A. and the communication received from the Office of the Pr. CIT, the learned DR submitted that the order of the Tribunal be recalled and the appeal be heard on merit. 5. The learned Counsel for the assessee, on the other hand, while opposing the M.As submitted that the Pr.CIT himself has held that no further appeal lies against the order of the Tribunal in view of the low tax effect. He submitted that the low tax effect clause is applicable for filing of the appeal before the Tribunal as well as the High Court and the exception clauses also applies equally. Therefore, once the Revenue cannot file appeal before the Hon'ble High Court on account of low tax effect, they also cannot file the appeal before the Tribunal on account of the same low tax effect. He further submitted that the so-called audit objection raised by the Revenue Audit Party (RAP) does not find a place anywhere i.e. either in the order of the Assessing Officer or the CIT (A) and the Revenue has not brought anything on record to this effect and therefore, the order of the Tribunal being in accordance with law should be upheld and all the M.As filed by the Revenue should be dismissed. 6. We have heard the rival arguments made by both the sides and perused the record. We find the Tribunal in W.T Appeals No. 1 to 5/Hyd/2016 dated 7.6.2022 had dismissed the appeals filed by the Revenue on account of low tax effect. A perusal of the communication received from the Pr.CIT also states that no further appeal is to be filed before the Hon'ble High Court on account of low tax effect. Despite directing the Revenue to produce any evidence to suggest that there is any objection raised by the RAP, no such evidence was produced before us. In our MA Nos 129 138 139 140 and 141 Y Ravichand Hyderabad Page 4 of 4 opinion, once the Revenue is precluded from filing appeal before the Hon'ble High Court on account of low tax effect, the Revenue cannot file the appeal before the Tribunal on the very same reason i.e. on account of low tax effect. The exception mentioned at Para 10(c) of the Circular equally applies for filing of appeal by the Revenue before the Tribunal as well as the Hon'ble High Court. In absence of any evidence filed before us that the cases fall under the exception to Board’s Circular No.3 of 2018 dated 11.7.2018, we dismiss the M.As filed by the Revenue. 7. In the Result, all the five M.As filed by the Revenue are dismissed. Order pronounced in the Open Court on 21 st October, 2022. Sd/- Sd/- (LALIET KUMAR) JUDICIAL MEMBER (R.K. PANDA) ACCOUNTANT MEMBER Hyderabad, dated 21 st October, 2022. Vinodan/sps Copy to: S.No Addresses 1 WTO Ward 14(1), 6 th Floor, C Block, IT Towers, Masab Tank, Hyderabad 2 Shri Y. Ravi Chand, Plot No.417A Road No.18, Jubilee Hills, Hyderabad 3 CIT (A)-6,Hyderabad 4 Pr. CIT-6, Hyderabad 5 DR, ITAT Hyderabad Benches 6 Guard File By Order