The Dy. Commissioner of Income Tax, Circle-1(1)(2), Baroda V. M/s. Farmson Pharmaceuticals Gujarat Pvt. Ltd., Baroda

MA 132/AHD/2019

AI Insights

The case involves the Assistant Commissioner of Income Tax (ACIT), Circle 1(1)(2), Baroda as the applicant and M/s. Farmson Pharmaceuticals Gujarat P. Ltd. as the respondent. The Department sought to recall the Tribunal's earlier order which had dismissed their appeal on the grounds of low tax effect, as per the CBDT Circular No.3 of 2018. The Department argued that the dismissal did not consider the exclusionary clause related to audit objections. The Tribunal agreed with the Department's submission, noting that the appeal fell within the exceptions provided in the Circular due to the acceptance of Revenue Audit objections by the Department.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133607 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 23-03-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 24-02-2019
• Laws Referred To: CBDT Circular No.3 of 2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘D’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND MS. SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER Misc. Application No.132/AHD/2019 IN ITA No.1229/Ahd/2017 Asstt.Year : 2010-11 ACIT, Cir.1(1)(2) Baroda. Vs M/s.Farmson Pharmaceuticals Gujarat P. Ltd. 28-35, GIDC Estate Nandesari, Baroda. PAN : AAACF 3358 B (Applicant) (Responent) Assessee by : Ms.Amrin Pathan, AR Revenue by : Shri Dileep Kumar, Sr.DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 2 4 / 0 3 / 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 : / 0 3 / 2 0 2 3 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER This Misc.Application has been filed by the Department seeking recall of order qua present appeal passed by the Tribunal dismissing Revenue’s appeal dated 30.7.2018 in a bunch of appeals consisting of 62 appeals during the special drive to identify and dispose of appeals where tax effect is below Rs.20 lakhs pursuant to the CBDT Circular No.3 of 2018 dated 11.7.2018 2. The ld.DR at the outset submitted that the Tribunal has wrongly dismissed the appeal of the Department on account of low tax. The ld.DR submitted the Tribunal failed to consider the exclusionary clause of audit objection provided in Circular NO.3/2018 clause-10(c) and the appeal of the Department therefore MA No.132/Ahd/2019 2 was outside the scope of the above CBDT Circular. The relevant part reads as under: “[10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) ............. (b) ................. (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) (e) (f) 3. A copy of audit objection made in this case was made available to us. The ld.counsel for the assessee did not object to the same if the appeals are recalled for hearing on merits. 4. Considering the submissions of the learned DR that the present appeal falls within the exceptions provided in Para 8(c) of above Board's Instruction on account of Revenue Audit Objection being accepted by the Department, and the ld.counsel for the assessee not contesting the submissions of the DR, we recall impugned order qua ITA No.1229/Ahd/2017 dated 30.7.2019 passed in combined order in ITA No. 1282/Ahd/2018 and 60 others and restore the above appeals for hearing on merits on 18-04-2023. 5. In the result, the MAs of the Revenue is allowed. Order pronounced in the Court on 29 th March, 2023 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 29/03/2023 vk*