ACIT, CHENNAI V. Bherudan Dugar Finacne Ltd., CHENNAI

MA 145/CHNY/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6691 (ITAT-CHENNAI)
• Duration Of Justice: 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 19-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAYA PRABHA IRS
• Assessee Lawyers: J PRABHAKARC A
• Keywords: Audit objection; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI . , , BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER M.P.NO.145/CHNY/2018 ( ./I.T.A. NO.675/MDS/2017 ) ! / ASSESSMENT YEAR : 2006-2007. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(2) CHENNAI 600 034. VS. M/S. BHERUDAN DUGAR FINANCE LTD, NO.73/1, JERMIAH ROAD, VEPERY, CHENNAI 600 007. [PAN AAACB 3042Q] (PETITIONER) ( /RESPONDENT) PETITIONER BY : MS. VIJAYA PRABHA, IRS, JCIT RESPONDENT BY : SHRI. J. PRABHAKAR C.A. ' # $ %& /DATE OF HEARING : 29-06-2018 '(! $ %& /DATE OF PRONOUNCEMENT : 29-06-2018 / O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER: REVENUE THROUGH THIS MISCELLANEOUS PETITION SUBM ITS THAT THIS TRIBUNAL HAD DISMISSED THE IMPUGNED APPEAL REL YING ON CIRCULAR NO.21/2015, DATED 10.12.2015 OF CBDT FOR LOW TAX EF FECT. M.P.NO.145/CHNY/2018 :- 2 -: 2. LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE APPEAL WAS FILED BY THE REVENUE SINCE REVENUE AUDIT OBJECT ION WAS ACCEPTED. ACCORDING TO THE LD. DEPARTMENTAL REPRESENTATIVE, W HEN REVENUE AUDIT OBJECTION WAS ACCEPTED REVENUE COULD FILE AN APPEA L BEFORE THIS TRIBUNAL VIDE CLAUSE 8(C) OF CIRCULAR NO.21/2015. A S PER THE LD. DEPARTMENTAL REPRESENTATIVE, TAX LIMITS WERE NOT AP PLICABLE FOR APPEALS FILED PURSUANT TO REVENUE AUDIT OBJECTION. 3. PER CONTRA, LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT IN THE ORIGINAL GROUNDS FILED BY THE DEPARTMENT, THERE WAS NOT EVEN A WHISPER ABOUT ANY AUDIT OBJECTION. RELYING ON THE J UDGMENT OF HONBLE APEX COURT IN THE CASE OF D.I.T VS. S.R.M.B. DIARY FARMING (P) LTD, 400 ITR 9, LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT GOVER NMENT AGENCIES SHOULD BE EFFICIENT AS WELL AS RESPONSIBL E LITIGANT IN THE MATTER OF PURSUING APPEALS BEFORE VARIOUS FORUMS. 4. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE ORDER OF THIS TRIBUNAL. THE TRIBUNAL HAD DISMISSED THE APPEAL OF THE REVENUE SINCE THE ADDITION WHICH WAS DELETED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) WHICH WAS ASSAILED BY THE DEPARTMENT IN APPEAL, WAS ONLY C6,76,330/-. NOT ONLY TAX EFFECT WAS LESS THAT M.P.NO.145/CHNY/2018 :- 3 -: C10,00,000/- BUT ONLY NEAR OR ABOUT C2,00,000/-. B Y VIRTUE OF CIRCULAR NO.21/2015 MENTIONED (SUPRA) AN APPEAL OF THE REVEN UE WOULD NOT LIE BEFORE THIS TRIBUNAL WHEN TAX EFFECT WAS LESS THAN C10,00,000/-. NO DOUBT BY VIRTUE OF CLAUSE 8(C) OF THIS CIRCULAR, I RRESPECTIVE OF THE TAX EFFECT, DEPARTMENT CAN PREFER AN APPEAL WHERE SUCH APPEAL IS PURSUANT TO ACCEPTANCE OF A REVENUE AUDIT OBJECTION . HOWEVER, IT IS THE RESPONSIBILITY OF THE DEPARTMENT TO BRING THIS TO THE ATTENTION OF THE TRIBUNAL THROUGH THE GROUNDS RAISED BY IT OR AT LEAST DURING THE COURSE OF HEARING OF THE APPEAL. THESE WERE OBVIOUS LY NOT DONE. THAT APART, WHETHER AUDIT OBJECTION, WHEN INITIALLY RAI SED BY THE AUDIT PARTY, WAS OPPOSED BY THE LD. ASSESSING OFFICER OR ACCEPTED AT THE VERY THRESHOLD ARE NOT CLEAR NOR IN SUCH INFORMAT ION AVAILABLE FROM RECORDS. IF THE LD. ASSESSING OFFICER HAD AT THE F IRST INSTANCE OBJECTED TO THE REVENUE AUDIT OBJECTION AND LATER ACCEPTED SUCH AUDIT OBSERVATION, IN OUR OPINION IT CANNOT BE CONSIDERE D AS ACCEPTANCE OF AN AUDIT OBJECTION WITHOUT DEMUR. CONSIDERING ALL T HESE, WE ARE OF THE OPONION THAT REVENUE HAS NOT BEEN ABLE TO SHOW ANY MISTAKE IN THE ORDER OF THE TRIBUNAL, MUCH LESS A MISTAKE APPARENT ON RECORD, WARRANTING INTERFERENCE UNDER SECTION 254(2) OF THE INCOME TAX ACT. WE THUS DO NOT FIND ANY MERIT IN THIS MISCELLANEOUS PETITION FILED. M.P.NO.145/CHNY/2018 :- 4 -: 4. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON FRIDAY, THE 29 TH JUNE, 2018, AT CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( . ! ' ) (ABRAHAM P. GEORGE) $ % / ACCOUNTANT MEMBER * # / CHENNAI + / DATED: 29 TH JUNE, 2018. KV , $ -%. / 0 /!% / COPY TO: 1 . 1 / APPELLANT 3. ' 2% ( ) / CIT(A) 5. /45 -%6 / DR 2. -71 / RESPONDENT 4. ' 2% / CIT 6. 58 9# / GF