ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE-7(3)(2), MUMBAI V. M/S.PRINT ELECTRONICS EQUIPMENTS PVT. LTD, MUMBAI

MA 249/MUM/2022

AI Insights

The case involves the Income Tax Department (Revenue) seeking to recall an earlier Tribunal order which dismissed their appeal due to the tax effect being below the threshold of Rs. 50 lakhs as per CBDT Circular No. 17/2019. The Revenue contended that the appeal was related to a 'Revenue audit objection', thus falling under exceptions to the circular. However, the assessee argued that the Revenue's application to recall was filed beyond the statutory time limit, which was extended by a Supreme Court order. The Tribunal, after considering the submissions and the report from the Assessing Officer, concluded that the delay in filing the Miscellaneous Application was not condonable under section 254(2) of the Act, leading to the dismissal of the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123956 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 22-12-2022
• Assessment Year: 2005-2006
• Appeal Filed On: 19-09-2022
• Other Referred Cases: Union of India vs. Ashish Agarwal
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M.D. PANDYA
• Keywords: Audit objection; Tax effect
• Section: 254(2); 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI ‘C’ BENCH, MUMBAI. Before Shri B.R. Baskaran (AM) & Shri Rahul Chaudhary (JM) M.A. No. 249/Mum/2022 in I.T.A. No. 5240/Mum/2019 (A.Y. 2005-06) ITO-7(3)(1) Room No.128A Aayakar Bhavan M.K. Road Churchgate Mumbai-400 020. V s. M/s. Print Electronics Equipments Private Limited A-9, Royal Industrial Estate Naigaum Cross Road Wadala, Mumbai-400 031. PAN : AAACP2982K (Appellant) (Respondent) Assessee by Shri M.D. Pandya Department by Dr. Samuel Pitta D ate of He a rin g 23.12.2022 D ate of P r on ou nc em ent 24.02.2023 O R D E R Per B.R.Baskaran (AM) :- The Revenue has filed this Miscellaneous Application seeking recall of the order dated 01.03.2021 passed by the Tribunal in ITA No. 5240/Mum/2019. 2. The above said appeal of the Revenue was dismissed on the reasoning that the tax effect involved on the issues disputed by the Revenue is less than Rs. 50 lakhs fixed by the CBDT vide its Circular No. 17/2019 dated 8.8.2019 for preferring appeals before the Tribunal. In the present Miscellaneous Application, it is submitted that the issue contested in the appeal of the Revenue arises out of the “Revenue audit objection” and hence covered by the Exceptions given in the above said Circular. Accordingly, it is prayed that the impugned order of the Tribunal be recalled. MA 249/Mum/2022 M/s Print Electronics Equipments 2 3. At the time of hearing, the learned AR submitted that the miscellaneous application has been filed by the Revenue beyond the time limit prescribed u/s 254(2) of the Act read with time extended by Hon'ble Supreme Court, vide its order dated January 10, 2022 passed in the Miscellaneous Application No.21 of 2022 in Suo motu Writ Petition (C) No.3 of 2020. In support of this contention, the assessee filed following date chart and submitted that there is delay of 19 days in filing the present miscellaneous application. “ PRINT ELECTRONIC EQUIPMENT PRIVATE LIMITED Miscellaneous Application No. 249/M/2022 Assessment Year 2005-06 1 Order of the Hon ITAT was passed on 01.03.2021 2 6 Months from end of the month in 30.09.2021 which order was passed 3 However on account of the Hon 28/02/2022 Supreme Court order the period of limitation got extended to 4 6 months period from the above date 31/08/2022 would get over on 5 The MA is filed on 20/09/2022 6 Hence there is delay of 19 days.” Accordingly, he contended that the present Miscellaneous Application filed by the Revenue is liable to be dismissed as time barred. 4. In view of the above said argument of the assessee, learned DR was directed to get a report from the Assessing Officer on the above said contentions of the assessee on last hearing. Accordingly, the Learned DR filed a letter dated 28.11.2022 furnished by the Assessing Officer to the Bench and the same reads as under :- MA 249/Mum/2022 M/s Print Electronics Equipments 3 “No ITO-7(3)(1) MA Print Electronics/2022-23 Date: 28.11.2022 To The ITAT C Bench Mumbai (Thro' Proper Channel) Sir/Madam, Sub: Appeal in MA/249/M/2022 (ITA 5240/M/2019) in the case of M/s.Pr Electronics Equipments Pvt. Ltd. for AY 2005-06 PAN No AAACP2082K -reg. Ref: Mail dated 25.11.2022 received from ITO 'C' Bench, ITAT, Mumbai ******************** Kindly refer to the above 2. In respect of the above, you have directed to file a report in regard to delay of 19 days in filing MA petition. The Pr.CIT-8, Mumbai vide letter No.Pr.CIT-8/Judicial/20 22 dated 27.12.2021 has approved filing of Miscellaneous Application in the case M/s Print Electronics Equipments Pvt. Ltd. for the A.Y. 2005-06 vide ITA 5240/MUM/2019 dated 01.03.2021 (copy enclosed). 3. The undersigned has taken the charge on 22.6.2022 in this office. In view implementation of Hon'ble Supreme Court Judgement dated 4.5.2022 in the ca Union of India vs. Ashish Agarwal, Order u/s 148A(d) of the IT. Act was completed in many cases. Therefore there was a delay of 19 days in filing of Miscellaneous Application due to the time barring work in compliance to Supreme Court decision. 4. In view of the above, your Honour may kindly condone the delay.” 5. A perusal of the letter written by the AO (supra) would show that the Revenue accepted the contentions of Ld A.R that there was delay of 19 days in filing the Miscellaneous Application, meaning thereby the Miscellaneous Application has been filed by the revenue beyond the time limit prescribed under section 254(2) of the Act. It is pertinent to note that there is no provision under the Act to condone the delay in filing Miscellaneous Application to be filed under section 254(2) of the Act. Accordingly Miscellaneous Application filed by the Revenue is liable to be dismissed as barred by limitation. We order accordingly. MA 249/Mum/2022 M/s Print Electronics Equipments 4 6. In the Miscellaneous Application filed by the Revenue is dismissed. Pronounced in the open court on 24.2.2023. Sd/- Sd/- (RAHUL CHAUDHARY) (B.R. BASAKARAN) Judicial Member Accountant Member Mumbai; Dated : 24/02/2023 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// (Assistant Registrar) PS ITAT, Mumbai