ACIT, Central Circle-26, New Delhi V. Parag Dalmia, New Delhi

MA 26/DEL/2020

AI Insights

The case involves the Revenue's Miscellaneous application seeking the recall of the Tribunal's order that deleted the penalty under section 271(1)(c) of the Income Tax Act, 1961, due to the deletion of quantum addition by the Tribunal. The Revenue argued that the quantum appeal was dismissed not on merits but because the tax effect was below Rs. 50,00,000, as per CBDT Circular dated 8.08.2019. The Tribunal acknowledged the mistake in their earlier order and recalled it, allowing the Revenue's application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129932 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-02-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 24-11-2022
• Assessment Year: 2012-2013
• Appeal Filed On: 23-01-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 271(1)(c); 143(3)

Judgement Text

MA. No. 26/Del/2020 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER A N D SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER Misc. App. No. 26/Del/2020 [ in आ.अ.सं .I.T.A No. 3285/Del/2018 ] ( िनधाᭅरण वषᭅ/Assessment Year: 2012-13 ) ACIT, Central Circle : 26, New Delhi बनाम Vs. Shri Parag Dalmia, A-238, Ground Floor, Okhla Industrial Area, Phase : 1, New Delhi – 110 001. PAN No. AAAPD3725B अपीलाथŎ /Applicant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरतीकᳱओरसे /Assessee by : Shri Nirbhay Mehta, Advocate; राज᭭वकᳱओरसे /Revenue by : Shri Kumar Pranav, Sr. D. R.; सुनवाईकᳱतारीख/ Date of hearing : 25/11/2022 उद्घोषणाकीतारीख/Pronouncement on : 13/02/2023 आदेश / O R D E R PER C. N. PRASAD, J. M. : 1. Through this Miscellaneous application the Revenue seeks to recall of the order of the Tribunal in ITA. No. 3285/Del/2018 which MA. No. 26/Del/2020 2 was disposed of by the Tribunal by order dated 3.07.2019 deleting the penalty levied under section 271(1)(c) of the Income Tax Act, 1961 (the Act) on the ground that the quantum addition has been deleted by the Tribunal. 2. The ld. DR submitted that the quantum appeal of the Revenue in ITA. No. 923/Del/2018 has been dismissed by the Tribunal by order dated 23.08.2019 on the ground that the tax effect in the appeal is less than Rs.50,00,000/-. The Revenue in the Misc. application contends that in the assessment order passed under section 143(3) of the Act addition was made on account of interest related to foreign bank account in HSBC Bank, Geneva and, therefore, it falls under the exception laid down in CBDT Instruction No. 17/2019 dated 8.08.2019. Therefore, the Revenue prays for recalling of the order of the Tribunal in ITA. No. 3285/Del/2018 dated 3.07.2019 which is on the levy of penalty under section 271(1)(c) of the Act. 3. On hearing the rival submissions we find that the quantum appeal of the Revenue in ITA. No. 923/Del/2018 was dismissed by the Tribunal by order dated 23.08.2019 on the ground that the tax effect is less than Rs.50,00,000/- as specified in CBDT Circular dated 8.08.2019. It was observed that the Tribunal did not dispose of the appeal on merits of the addition made in the quantum assessment. Therefore, dismissing the appeal of the Revenue in ITA. No. 3285/Del/2018 on the ground that the Tribunal deleted the quantum is a mistake apparent on records and thus we recall the order of the Tribunal in ITA. No. 3285/Del/2018 dated 3.07.2019. The Registry is directed to post the appeal for MA. No. 26/Del/2020 3 hearing in due course and issue notice to the parties informing the date of hearing. 4. In the result, the Misc. application filed by the Revenue is allowed. Order pronounced in the open court on : 13/02/2023. Sd/- Sd/- (ANADEE NATH MISSHRA) ( C. N. PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 13/02/2023. *MEHTA* Copy forwarded to 1. Applicant; 2. Respondent; 3. CIT 4. CIT (Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, New Delhi. Date of dictation 10.02.2023 Date on which the typed draft is placed before the dictating member 10.02.2023 Date on which the typed draft is placed before the other member 13.02.2023 Date on which the approved draft comes to the Sr. PS/ PS 13.02.2023 MA. No. 26/Del/2020 4 Date on which the fair order is placed before the dictating member for pronouncement 13.02.2023 Date on which the fair order comes back to the Sr. PS/ PS 13.02.2023 Date on which the final order is uploaded on the website of ITAT 13.02.2023 Date on which the file goes to the Bench Clerk 13.02.2023 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the order