ACIT, CHENNAI V. M/s. G.G., CHENNAI

MA 177/CHNY/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6713 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-06-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 09-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: K BALASUBR AMANIAN
• Keywords: Audit objection; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI ... , . !' , # $ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER %% / M.P. NO.177/CHNY/2017 (IN I.T.A. NO.2822/MDS/2016) & '& / ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE 4, CHENNAI - 600 006. V. M/S GG, NO.68, ARATHOON ROAD, ROYAPURAM, CHENNAI - 600 034. PAN : AACFG 7105 J ()*& /PETITIONER) ()+*,/ RESPONDENT) )*& . / /PETITIONER BY : SHRI AR.V. SREENIVASAN, JCIT )+*, . / / RESPONDENT BY : SHRI K. BALASUBRAMANIAN, ADVOCAT E 0 . 1# / DATE OF HEARING : 01.06.2018 2!' . 1# / DATE OF PRONOUNCEMENT : 01.06.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE REVENUE HAS FILED THE PRESENT MISCELLANEOUS P ETITION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL DATED 30.12.2018. 2. SHRI AR.V. SREENIVASAN, THE LD. DEPARTMENTAL REP RESENTATIVE, SUBMITTED THAT THE APPEAL OF THE REVENUE WAS DISMIS SED ON THE GROUND THAT THE TAX EFFECT INVOLVED IN THIS APPEAL WAS LES S THAN 10 LAKHS. THE 2 M.P. NO.177/CHNY/17 LD. D.R. SUBMITTED THAT THE TAX EFFECT WAS ADMITTED LY 10 LAKHS. HOWEVER, THE APPEAL WAS FILED AS A RESULT OF AUDIT OBJECTION RAISED BY THE REVENUES AUDIT PARTY. REFERRING TO THE CIRCULAR I SSUED BY THE CBDT PRESCRIBING THE MONETARY LIMIT FOR FILING APPEAL BE FORE THIS TRIBUNAL, THE LD. D.R. POINTED OUT THAT WHEREVER THERE WAS REVENU E AUDIT OBJECTION, THE CIRCULAR IS NOT APPLICABLE AT ALL. REFERRING T O THE OFFICE NOTE PUT UP BEFORE THE ADMINISTRATIVE COMMISSIONER TO FILE AN A PPEAL BEFORE THIS TRIBUNAL, THE LD. D.R. SUBMITTED THAT THE NOTE CLEA RLY SAYS THAT THERE WAS AUDIT OBJECTION AND THE APPEAL WAS FILED DUE TO THE AUDIT OBJECTION ONLY. THEREFORE, ACCORDING TO THE LD. D.R., THE ADMINISTR ATIVE COMMISSIONER GRANTED PERMISSION TO FILE THE APPEAL BEFORE THIS T RIBUNAL, HENCE, THE CIRCULAR OF THE CBDT PRESCRIBING THE MONETARY LIMIT IS NOT APPLICABLE IN THIS CASE. 3. ON THE CONTRARY, SHRI K. BALASUBRAMANIAN, THE LD .COUNSEL FOR THE ASSESSEE, SUBMITTED THAT NO DOUBT, THE MONETARY LIM IT WAS LESS THAN 10 LAKHS AND THE AUDIT OBJECTION WAS ALSO BROUGHT TO T HE NOTICE OF THE COMMISSIONER. HOWEVER, THE REVENUE HAS NO MERIT IN THE APPEAL. BY RECALLING AND PLACING THE APPEAL ON FILE, ACCORDING TO THE LD. COUNSEL, NO PURPOSE IS GOING TO BE SERVED. THE ASSESSEE HAS ST RONG CASE IN THE APPEAL. THEREFORE, ACCORDING TO THE LD. COUNSEL, T HE APPEAL NEED NOT BE RESTORED ON THE FILE ONCE AGAIN. 3 M.P. NO.177/CHNY/17 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE REVENUE CLAIMS THAT THERE WAS AUDIT OBJECTION AND THE ADMINISTRATI VE COMMISSIONER GRANTED PERMISSION TO FILE THE APPEAL BEFORE THIS T RIBUNAL ONLY ON THE BASIS OF AUDIT OBJECTION. IT IS NOT IN DISPUTE THA T THE CIRCULAR ISSUED BY THE CBDT PRESCRIBING THE MONETARY LIMIT FOR FILING THE APPEAL BEFORE THIS TRIBUNAL, IS NOT APPLICABLE WHEREVER THERE WAS AUDI T OBJECTION. NOW THE ASSESSEE CLAIMS THAT THERE IS A MERIT IN THE APPEAL OF THE ASSESSEE. HOWEVER, AT THIS STAGE, THERE MAY NOT BE ANY NECESS ITY FOR THE TRIBUNAL TO GO INTO THE MERIT OF THE APPEAL. WHAT IS REQUIRED TO SEE IS WHETHER THE DISMISSAL OF THE APPEAL OF THE REVENUE ON THE GROUN D THAT THE TAX EFFECT WAS LESS IS A FACTUAL ERROR OR NOT? EVEN THOUGH TA X EFFECT WAS LESS THAN 10 LAKHS, THE CIRCULAR ISSUED BY THE CBDT FIXING TH E MONETARY LIMIT IS NOT APPLICABLE TO THIS CASE SINCE THE APPEAL WAS FILED DUE TO AUDIT OBJECTION. THEREFORE, THERE IS AN ERROR IN THE ORDER OF THIS T RIBUNAL. ACCORDINGLY, THE ORDER OF THIS TRIBUNAL DATED 30.12.2016 IS HEREBY R ECALLED AND THE APPEAL OF THE REVENUE IN I.T.A. NO.2822/MDS/2016 STANDS RE STORED ON THE FILE OF THIS TRIBUNAL. THE REGISTRY IS DIRECTED TO POST TH E APPEAL FOR FINAL DISPOSAL ON 1 ST AUGUST, 2018. 5. IT IS MADE CLEAR THAT WE ARE NOT EXPRESSING ANY VIEW ON THE MERIT OF THE APPEAL. THE APPEAL OF THE REVENUE HAS TO BE HEARD ON MERIT IN THE FACTS OF THE CASE AND TO BE DECIDED IN ACCORDANCE W ITH LAW. THE REGISTRY IS DIRECTED TO POST THE APPEAL BEFORE THE REGULAR B ENCH. 4 M.P. NO.177/CHNY/17 6. WITH THE ABOVE OBSERVATION, THE MISCELLANEOUS PE TITION FILED BY THE REVENUE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST JUNE, 2018 AT CHENNAI. SD/- SD/- (. !' ) ( ... ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 1 ST JUNE, 2018. KRI. . )15% 6%'1 /COPY TO: 1. )*& / PETITIONER 2. )+*, /RESPONDENT 3. 0 71 () /CIT(A) 4. 0 71 /CIT 5. %8 )1 /DR 6. 9& : /GF.