ITO, Tirunelveli V. A.Periasamy Nadar, Tirunelveli

MA 21/CHNY/2020

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 9285 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 11 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-01-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 21-12-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 28-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 254(2)

Judgement Text

आयकर अपीलीय अिधकरण, ’डी’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI ी वी. दुगा राव, माननीय ाियक सद एवं ी मंजूनाथा.जी, माननीय लेखा सद के सम BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA.G, HON’BLE ACCOUNTANT MEMBER Miscellaneous Application Nos.21 & 22/Chny/2020 (in ITA Nos.3295 & 3296/Chny/2016) िनधा रण वष /Assessment Years: 2010-11 & 2011-12 The Income Tax Officer, Ward-3, Tirunelveli. v. Shri A. Periasamy Nadar, 9/101, Raja Veethi, Koodankulam, Tirunelveli-627 657. [PAN: BEOPP 1175 A] (अपीलाथ /Appellant) ( यथ /Respondent) Department by : Shri AR.V.Sreenivasan, Addl.CIT Assessee by : None सुनवाई क तारीख/Date of Hearing : 22.12.2023 घोषणा क तारीख /Date of Pronouncement : 02.01.2024 आदेश / O R D E R PER MANJUNATHA.G, AM: The Revenue has filed present Miscellaneous Applications u/s.254(2) of the Income Tax Act, 1961, against the order of the Tribunal in ITA Nos.3295 & 3296/Chny/2016 dated 22.08.2019, and pertains to assessment years 2010-11 & 2011-12. MA Nos.21 & 22/Chny/2020 (in ITA Nos.3295 & 3296/Chny/2016) :: 2 :: 2. The Revenue has narrated the facts of its case and mistakes stated to be apparent on record from the order of the Tribunal dated 22.08.2019 and relevant contents of Miscellaneous Applications filed by the Revenue for both AYs 2010-11 & 2011-12 in ITA Nos.3295 & 3296/Chny/2016 are reproduced as under: 1. The above appeal had been disposed of by the Hon'ble Tribunal by its order in ITA No. 3295 and 3296/Chny/2016 dated 22.08.2019 for the A.Y. 2010-11 and A.Y. 2011-12. This Miscellaneous petition u/s 254(2) present to the ITAT on technical grounds. 2. The appellant had come on appeal before the Hon'ble Tribunal raising issued in the grounds of appeal against the order of the CIT(A)'s in ITA No.0125&0126/2015- 16 dated 15.09.2016. The department had preferred this appeal before the Hon'ble ITAT for the A.Y. 2010-11 & A.Y. 2011-12. In this case the assessee did not maintain books of accounts and not furnished audit report, Hence, the income of the assessee should be assessed at 8% and not 5%. Thus on the above grounds the order of CIT(A) is not acceptable and requested further appeal. 3. The Hon'ble ITAT vide order in ITA No.3295&3296/Chny/2019 dated 22.03.2019 in Para No.11. All the appeals were dismissed as withdrawn and the cross objections were dismissed as infructuous. The Honourable ITAT has dismissed as withdrawn this case as per Board Circular No.3/2018 dated 11.07.2018 issued by the CBDT in F.No.279/Misc.l42-2007-ITJ(Pt) dated 20.08.2018. As monetary limits and other conditions for filling departmental appeals (in income-tax matters) before Income Tax Appellate Tribunal is less than 50 lakhs. 4. Since the Honourable ITAT has dismissed as withdrawn this case as per Board Circular No.3/2018 dated 11.07.2018 issued by the CBDT in F.No.279/Misc.l42- 2007ITJ(pT) dated 20.08.2018, as monetary limits and other conditions for filling departmental appeals (in income-tax matters) before Income Tax Appellate Tribunal is lees that 50 lakhs. 5. a. Even though the tax effect is less than the prescribed monetary limit, the case is covered under the exemption of the sub-clause (C) of the CBDT Circular No.3/2018 as the revenue audit objection in respect of the case was accepted by the Department. b. Moreover, the ITAT, in its earlier Order dated 11.05.2017 in the same case has allowed the revenue appeal on merits. Hence, I pray the Hon'ble ITAT to consider this Miscellaneous Petition requesting it to recall the dismissal of appeals on technical grounds and take up the above issues for adjudication on merits. MA Nos.21 & 22/Chny/2020 (in ITA Nos.3295 & 3296/Chny/2016) :: 3 :: 3. None appeared for the assessee. We have heard the Ld.DR and considered relevant contents of Miscellaneous Applications filed by the Revenue for both assessment years against the order of the Tribunal in ITA Nos.3295 & 3296/Chny/2016 dated 22.08.2019, and we find that appeals filed by the Revenue have been disposed off by the Tribunal by common order dated 22.08.2019 in light of CBDT Circular No.17/2019 in F.No.279/Misc.142/2007-ITJ(Pt) dated 08.08.2019, issued for fixing monetary limit by the Board for filing appeals before the Tribunal and held that the disputed taxes involved in the Revenue appeals, is less than the amount of monetary limit fixed by the Board for filing appeals before the Tribunal. The Revenue through their Miscellaneous Applications claimed that although the tax effect involved in both appeals filed by the Revenue is less than the monetary limit fixed by the Board for filing appeals before the Tribunal, but both cases would come under exception in sub-clause (C) of Para No.10 of Circular No.3/2018 issued by the CBDT, because, assessments have been completed in pursuant to Revenue audit objection and wherever assessments have been completed in pursuant to audit object, the Revenue should pursue the issue irrespective of monetary limit involved in those appeals. In this regard, the Ld.DR has filed evidences to prove their cases that assessments have been completed in pursuant to Revenue audit objection. After considering relevant submissions and also evidences placed by the Ld.DR present for the Revenue, we are of the considered view that there is a merit in Miscellaneous Applications filed by MA Nos.21 & 22/Chny/2020 (in ITA Nos.3295 & 3296/Chny/2016) :: 4 :: the Revenue for both assessment years, and thus, we recall the order of the Tribunal in ITA Nos.3295 & 3296/Chny/2016 dated 22.08.2019. The Registry is directed to list both the appeals for hearing in due course and inform both the parties. 4. In the result, the Miscellaneous Applications filed by the Revenue for both assessment years are allowed. Order pronounced on the 02 nd day of January, 2024, in Chennai. Sd/- ( वी. दुगा राव) (V. DURGA RAO) याियक सद य/JUDICIAL MEMBER Sd/- (मंजूनाथा.जी) (MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 02 nd January, 2024. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 3. आयकर आयु /CIT 5. गाड फाईल/GF 2. यथ /Respondent 4. िवभागीय ितिनिध/DR