The ACIT, Kochi V. M/s.Innovative Foods Ltd, Cochin

MA 170/COCH/2020

AI Insights

The case involves the Assistant Commissioner of Income Tax (Asst. CIT), Corporate Circle-1(2), Cochin, as the applicant, and Innovative Foods Ltd. as the respondent. The Revenue filed a Miscellaneous Petition against an earlier Tribunal order that dismissed its appeal due to low tax effect, as per the Board Circular 17/2019. The Tribunal had initially dismissed the appeal in limine but allowed restoration if it fell under any excepting clauses of the Board Circular. The Revenue sought recall based on the acceptance of a Revenue audit objection, which was the basis for the disallowance in question. The Tribunal, after reviewing the audit report and the circumstances, decided to restore the appeal for a substantive hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115494 (ITAT-COCHIN)
• Duration Of Justice: 3 year(s) 11 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-09-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 29-09-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection
• Section: 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Sanjay Arora, AccountantMemberand Shri Manomohan Das, JudicialMember MPNo. 170/Coch/2020 (Arising out of ITA No. 705/Coch/2019) (Assessment Year: 2007-08) Asst. CIT, Corporate Circle-1(2) C.R. Building I.S. Press Road Cochi 682018 vs. Innovative Foods Ltd. Amalgam House XXIV/1604, Plot No. 9 Bristow Road, Willingdon Island, Kochi 682003 [PAN:AAACH6081R] (Applicant) (Respondent) Applicant by: Smt. J.M. Jamuna Devi, Sr. DR Respondent by: None Date of Hearing: 08.09.2023 Date of Pronouncement:08.09.2023 O R D E R Per: Sanjay Arora, AM This Miscellaneous Petition (MP) by the Revenue is directed against the order under section 254(1) of the Income Tax Act, 1961 (‘the Act’)dated 02.3.2020by the Tribunal, disposing the Revenue’s captioned appeal in the assessee’s case for AY 2007-08. 2. In this case notice of hearing dated 19.07.2023 had come back unserved with the postal remarks “Addressee left without instruction”. Service was accordingly caused by the Tribunal to be made through the Department, also intimating it the assessee’s latest address on it’s records. The same has, however, met the same fate. We, accordingly, proceed to hear and decide the instant MP exparte qua the assessee MP No. 170/Coch/2020 (AY: 2007-08) Asst. CIT v. Innovaitive Foods Ltd. 2 respondent, who has not updated it’s current address either with the Tribunal or with the Revenue. 3. Vide the impugned order, the Tribunal has dismissed the Revenue’s appeal in limine in view of low tax-effect as per the Board Circular 17/2019 dated 08.08.2019 issued u/s. 268A of the Act. Liberty was at the same time was allowed by it to the Revenue to cause restoration of it’s appeal where it fell under any of the excepting clauses provided per the Board Circular/s. The Revenue has now sought recall of it’s appeal on the basis that the assessment was framed consequent to the acceptance of Revenue audit objection, copy of which is placed on record. 4. We have heard the party before us, and perused the material of record. We have perused the audit report. Para 3 thereof raises the issue of deduction claimed through debit of the Profit and Loss Account toward prepayment of premium on IDFC term loan, which is the issue raised in the Revenue’s appeal under reference. The audit objection, since accepted, thus forms the basis of the impugned disallowance. The Revenue’s appeal is thus maintainable. We, accordingly, restore it’s captioned appeal for being heard and decided by the Tribunal on merits. We decide accordingly. 5. In the result, the MP filed by the Revenue is allowed. Order pronounced in the open court on the conclusion of the hearing. Sd/- Sd/- (Manomohan Das) (Sanjay Arora) Judicial Member Accountant Member Cochin, Dated: September 8, 2023 MP No. 170/Coch/2020 (AY: 2007-08) Asst. CIT v. Innovaitive Foods Ltd. 3 Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin n.p.