The ITO, Ward-1(1)(4), Ahmedabad V. M/s. Dasaldhan Chemical Pvt. Ltd., Ahmedabad

MA 28/AHD/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6155 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-02-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 24-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Assessee Lawyers: S N DIVETIA
• Keywords: Tax effect
• Section: 13; 54

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH B BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER MISC. APPLICATION NO.27 & 29/AHD/2019 IN ./ ITA NO.1469 AND 1470/AHD/2016 / ASSTT. YEAR: 2010-2011 & 2011-12 ITO, WARD-1(1)(4) AHMEDABAD. VS. M/S.DASALDHAN CHEMICALS P.LTD. AHMEDABAD. / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI LALIT P. JAIN, SR.DR ASSESSEE BY : SHRI S.N. DIVETIA, AR ! / DATE OF HEARING : 07/02/2020 '#$ ! / DATE OF PRONOUNCEMENT: 13/02/2020 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: PRESENT TWO MISC. APPLICATIONS ARE DIRECTED AT INST ANCE OF THE REVENUE PLEADING THEREIN THAT APPEAL OF THE REVENUE BEARING ITA NO.1469/AHD/2016 AND 1470/AHD/2016 WERE DISMISSED B Y THE TRIBUNAL VIDE ORDER DATED 30.7.2018. 2. THESE APPEALS WERE DISMISSED ON THE GROUND THAT CBDT HAS ISSUED CIRCULAR NO.3 OF 2018 DATED 11.7.2018 WHICH PROVIDES THAT IF TAX EFFECT IN THE APPEAL OF THE REVENUE IS LESS THAN RS .20 LAKHS ON ISSUE ON WHICH CIT(A) GRANTED RELIEF, THEN SUCH ORDER OF THE CIT(A) WOULD NOT BE CHALLENGED BEFORE THE TRIBUNAL. THE ITAT FOUND THA T TAX EFFECT INVOLVED IN BOTH THE APPEALS IS LESS THAN RS.20 LAKHS, AND A CCORDINGLY DISMISSED MA NO.27 AND 28/AHD/2019 2 BOTH THE APPEALS. HOWEVER, A LIBERTY WAS GIVEN TO THE REVENUE TO POINT OUT IF ON RE-VERIFICATION IT COMES OUT THAT TAX EFF ECT WAS MORE THAN THE PRESCRIBED LIMIT, THE DEPARTMENT CAN APPROACH THE T RIBUNAL FOR RECALL OF THIS ORDER. 3. IT IS FURTHER PLEADED IN THE APPLICATION THAT CI RCULAR NO.3 OF 2018 WAS AMENDED BY THE CBDT VIDE LETTER DATED 20.8.2018 . IN THIS CIRCULAR/ LETTER IT HAS BEEN PROVIDED THAT IF ASSESSMENT IS B EING FRAMED ON THE BASIS OF SOME EXTERNAL INFORMATION, THEN CIRCULAR N O.3 OF 2018 WILL NOT BE APPLICABLE. THE LD.DR CONTENDED THAT IN THE PRE SENT CASE, MAHARASHTRA VAT DEPARTMENT HAD PROVIDED INFORMATION , AND ON THAT BASIS ADDITION HAS BEEN MADE. THEREFORE, THIS IS A N INFORMATION FROM EXTERNAL SOURCE, AND THE CASE OF THE ASSESSEE FALLS IN THE EXCEPTION CARVED OUT BY THE CIRCULAR DATED 20.8.2018. COPY O F THE CIRCULAR HAS BEEN PLACED ON RECORD BY THE LD.DR. 4. ON THE OTHER HAND, THE LD.COUNSEL FOR THE ASSESS EE SUBMITTED THAT AT SERIAL NO.4 OF THE LETTER DATED 20.8.2018, IT HA S BEEN PROVIDED THAT THIS MODIFICATION SHALL INCOME INTO EFFECT FROM THE DATE OF ISSUE OF THIS LETTER. THIS LETTER WAS ISSUED ON 20.8.2018. THE TRIBUNAL HAS ALREADY DECIDED THE APPEAL OF THE REVENUE VIDE ORDER DATED 30.7.2018 WHEN NO CONDITION WAS MENTIONED IN THE CIRCULAR. THEREFORE, THERE IS NO APPARENT ERROR COMMITTED BY THE TRIBUNAL. 5. WE HAVE DULY CONSIDERED RIVAL SUBMISSIONS AND GO NE THROUGH THE RECORD. THE POWER OF RECTIFICATION UNDER SECTION 2 54 OF THE INCOME TAX ACT CAN BE EXERCISED ONLY WHEN THE MISTAKE, WHICH I S SOUGHT TO BE RECTIFIED, IS AN OBVIOUS PATENT MISTAKE, WHICH IS A PPARENT FROM THE RECORD AND NOT A MISTAKE, WHICH IS REQUIRED TO BE E STABLISHED BY ARGUMENTS AND LONG DRAWN PROCESS OF REASONING ON PO INTS, ON WHICH THERE MAY CONCEIVABLY BE TWO OPINIONS. A PERUSAL OF LETTER DATED 20.8.2018 WOULD INDICATE THAT CONDITION PROVIDED AT SERIAL NO.10 OF THE MA NO.27 AND 28/AHD/2019 3 ORIGINAL CIRCULAR HAS BEEN MADE APPLICABLE FROM THE DATE OF ISSUE OF THIS LETTER. EARLIER CONDITION APPENDED AT SUB-CLAUSE ( E) OF THIS LETTER WAS NOT AVAILABLE. THIS CONDITION READS AS UNDER: (E) WHERE ADDITION IS BASED ON INFORMATION RECEIVE D FROM EXTERNAL SOURCES IN THE NATURE OF LAW ENFORCEMENT A GENCIES SUCH AS CBI/ED/DRI/SFIO/DIRECTORATE GENERAL OF GST INTEL LIGENCE (DGGI). 6. SINCE THIS CONDITION WAS NOT AVAILABLE WHEN THE TRIBUNAL HAS PASSED THE ORDER ON 30.7.2018 DISMISSING THE APPEAL S OF THE REVENUE, THEREFORE, NO APPARENT ERROR WAS COMMITTED BY THE T RIBUNAL. WE DO NOT FIND ANY ERROR IN THE ORDER OF THE TRIBUNAL. HENCE , BOTH THE APPLICATIONS ARE DISMISSED. 7. IN THE RESULT, MISC. APPLICATIONS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 13 TH FEBRUARY, 2020 AT AHMEDABAD. SD/- SD/- (WASEEM AHMED) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER