DCIT CIR 3(3), MUMBAI V. SUPARNA CHEMICALS LTD, MUMBAI

MA 133/MUM/2020

AI Insights

The case involves a Miscellaneous Application filed by the Assistant Commissioner of Income Tax, 3(3)(2), Mumbai, concerning an earlier ITA decision which was disposed of due to low tax effect as per CBDT Circular No. 17 of 2019. The Department argued that the case fell under an exception due to an accepted audit objection, which warranted a different consideration than the low tax effect. The Tribunal agreed with the Department's position, noting that the audit objection had been accepted and remedial action under Section 148 of the Income Tax Act had been initiated, thus recalling the previous order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299484 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-02-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 20-10-2022
• Assessment Year: 2004-2005
• Appeal Filed On: 01-03-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 148; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI RAHUL CHAUDHARY, JM MA No. 133/MUM/2 020 (Arisi ng i n ITA N o. 7914/Mum/2011 for A.Y. 2004-05) The ACI T 3( 3)( 2), Mumbai Room N o.628, 6 th Flor, Aaykar Bhavan M. K. road, Mumbai-400 020 Vs. M/s Suparna Chemicals L td. 54A, Mi ttal Tower, Nariman Poi nt, Mumbai-400 021 (Applicant) (Respondent) PAN No. AABCS4678F Assessee by : None Revenue by : Shri Sa mue l P it ta, Sr . AR Date of h ea r ing: 21.1 0.20 22 Date of pronouncement : 09.0 2.20 23 O R D E R PER PRASHANT MAHARISHI, AM: 01. This Miscellaneous Application is filed by the Asst. Commissioner of Income Tax, 3(3) (2), Mumbai in ITA No. 7914/Mum/2011 for A.Y. 2004-05 dated 19 th August, 2019, which was disposed off on account of low tax effect as per CBDT Circular No. 17 of 2019 dated 8 th August, 2019 and its subsequent amendment dated 11 th July, 2018 and 20 th August, 2018. 02. The learned Assessing Officer has raised the Miscellaneous Application stating that the same is covered by exception as per Para 10(c) of the LTE circular. 03. The learned Departmental Representative has also submitted that there was an audit objection in the above matter. It has been accepted by the department and therefore, the appeal of the learned Assessing Officer could not have been withdrawn. As per letter dated 30 th September, 2022, case of the assessee was Page | 2 reopened on the account of audit objection accepted by the learned Assessing Officer. 04. Despite notice, none appeared on behalf of the assessee. Therefore, this Miscellaneous Application is disposed off on the basis of the merit of the case. 05. On careful consideration, we find that there was a revenue audit objection in the case, which is accepted by the Department and remedial action has been initiated under Section 148 of the Act. The letter dated 29 th October, 2007, by ITO, Technical-3, Mumbai, addressed to the learned Assessing Officer also confirmed the same. Therefore, this appeal of the learned Assessing Officer could not have been disposed off on account of low tax effect in view of Para 10(c) of CBDT circular no.3 of 2018 amended on 20 th August, 2018. In view of this, the order passed by the co-ordinate Bench in ITA No.7914/Mum/2011 for A.Y. 2004-05 dated 19 th August, 2019, suffers from mistake, hence, is recalled. The registry is directed to fix the appeal accordingly. 06. Accordingly, the Miscellaneous Application filed by the learned Assessing Officer is allowed. Order pronounced in the open court on 09.02.2023. Sd/- Sd/- (RAHUL CHAUDHARY) (PRASH ANT MAH ARI SHI) (JUDICI AL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 09.02.2023 Sudip Sarkar, Sr.PS Page | 3 Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. The CIT(A) 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai