The DCIT, Circle-2(1)(1), Ahmedabad V. Shri Manas Anilkumar Jhanjaria, Ahmedabad

MA 29/AHD/2019

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT), Circle 2(1)(1), Ahmedabad, as the applicant, and Shri Manas Anilkumar Jhanjaria, the respondent. The Revenue filed a Miscellaneous Application seeking recall of the ITAT's earlier order which had dismissed their appeal based on the CBDT Circular No.3 of 2018, which restricts filing appeals where the tax effect is below Rs.20 lakhs. However, the Revenue argued that the appeal should not be dismissed as they had accepted an audit objection on the issue, which was contested in the earlier appeal. The Tribunal agreed with the Revenue's position, leading to the recall of the earlier order and a directive for a fresh hearing of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133508 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-03-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 24-01-2019
• Laws Referred To: CBDT Circular No.3 of 2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘B’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND MS. SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER Misc. Application No.29/AHD/2019 IN ITA No.2122/Ahd/2017 Asstt.Year : 2007-08 The DCIT, Cir.2(1)(1) Ahmedabad. Vs Shri Manas Anilkumar Jhanjaria 36, Sumadhur Society B/h. Ocean Park Satellite, Ahmedabad. PAN : (Applicant) (Responent) Assesseeby : Shri Suresh Gandhi, AR Revenue by : Shri Rajdeep Singh, Sr.DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 1 7 / 0 3 / 2 0 2 3 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 2 2 / 0 3 / 2 0 2 3 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER By way of the above Misc. Application the Revenue seeks recall of order of the ITAT passed in ITA No.2122/Ahd/2017 dated 30.7.2018 for Asst.Year 2007-08 by pointing out non-applicability of CBDT Circular No.3 of 2018 dated 11.7.2018. 2. In the MA it is pleaded by the Revenue that the impugned order of the Tribunal dated 30.7.2018 (supra) has been passed by the Tribunal by invoking CBDT Circular No.3 of 2018, by which the CBDT has barred the Department not to file appeal before the ITAT MA No.29/Ahd/2019 2 where tax effect is above Rs.20 lakhs. However, this instruction and threshold monetary limit is subject to the exception provided in para-10(c) of the CBDT Instruction, that threshold limit of Rs.20 lakhs would not affect where Revenue audit objection in the case has been accepted by the Department. Therefore, though the tax effect in the impugned addition is below Rs.20 lakhs, however, since the Revenue has accepted the audit objection on the issue, which was contested before the ITAT in the appeal cited (supra), the appeal cannot be dismissed by virtue of the above CBDT Instruction as the case of the Revenue falls in the exception laid down in para 10 of the Circular. Therefore the Revenue has sought for recall the impugned order and deciding the issue on merit. 3. To these contentions of the Revenue, there is no contest on behalf of the assessee. 4. We heard the ld.DR and gone through the impugned order of the ITAT and the pleadings in the MA of the Revenue. We find that the Tribunal had dismissed the appeal of the Revenue by invoking CBDT circular No.3 of 2018 wherein the Department is restricted for filing appeal before the ITAT where tax effect is below Rs.20 lakhs. By way of the present MA, the Revenue pointed out that though the tax effect is below Rs.20 lakhs, the case of the Revenue falls within the scope of para-10(3) of the above Instruction, wherein the Department has accepted Audit Objection on the issue which was contested before the Tribunal. The ld.DR has placed on record copy of audit objection dated 15.4.2014. There is no contest on behalf of the assessee that the case of the Revenue falls under the exception clause of para-10(c) of the CBDT’s Circular No.3 of 2018 dated 11.7.2018. Therefore, the impugned order of the ITAT requires to be MA No.29/Ahd/2019 3 recalled and the matter be decided on merit. Accordingly, we allow the MA filed by the Revenue, and recall the impugned order dated 30.7.2018 and list the appeal bearing ITA No.2122/Ahd/2017 for fresh hearing. The Registry is directed to list the appeal for hearing in the ordinary course of time. 5. In the result, the MA of the Revenue is allowed. Order pronounced in the Court on 22 nd March, 2023 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 22/03/2023 vk*