The DCIT, Central Circle-1(4), Ahmedabad V. Shri Udaykumar Dineshchandra Bhatt, Ahmedabad

MA 3/AHD/2020

AI Insights

The case involves a Miscellaneous Application filed by the Revenue seeking recall of a previous order dismissing their appeal due to low tax effect, based on a circular dated 8th August 2019. The original appeal was dismissed as the tax effect was below the threshold of Rs. 50 Lacs. However, the Revenue contended that the tax effect was indeed more than Rs. 50 Lacs, calculated at a rate of 30% on the additions made, except for long-term capital gains. The court, after considering the arguments and the actual tax effect involved, decided to recall the previous order and set a date for a new hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124699 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-07-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-07-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 02-01-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER M. A . N o . 3/ A h d/2 02 0 ( I n I TA N o . 4 4 1 /A h d/2 01 7 ) (A s se s s m e n t Y e a r : 2 0 13 - 1 4 ) T h e D C IT C e ntr a l C ir c le - 1 ( 4 ), Ah me da bad बनाम/ V s . S h ri U day k um a r D i ne sh ch a n dr a B h at t A - 3 0 1, G a la x y C o mple x, O p p . G a la x y C in e ma , N a r o d a , A h me d a b a d थायी लेखा सं./जीआइआर सं./P A N / G I R N o . : A A V P B 6 2 5 2 C (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Ms. Saumya Pandey Jain, Sr.DR यथ क ओर से/Respondent by : Shri Karan Shah, AR स ु नवाई क तार ख / D a t e o f H e a r i ng 28/07/2023 घोषणा क तार ख /D a t e o f P ro n o u nc e me n t 28/07/2023 O R D E R PER Ms. MADHUMITA ROY - JM: The Miscellaneous Application has been filed by the Revenue seeking recall of the order dated 14.08.2019 passed by the Co-ordinate Bench in the appeal filed by the Revenue being ITA No. 441/Ahd/2017 for A.Y. 2013-14, whereby and whereunder the appeal filed by the department stood dismissed due to low tax effect on the basis of Circular dated 8 th August, 2019, where the tax effect involved in the appeal has been exceeded to Rs.50 Lacs in order to prefer appeal by the department before the ITAT. - 2 - MA No. 3/Ahd/2020(in ITA No.441/A/17) DCIT vs. Shri Udaykumar D. Bhatt Asst.Year – 2013-14 2. However, it is the case of the Revenue that the tax effect in this particular appeal is more than Rs.50 Lacs and, therefore, the appeal is duly maintainable. Though, the Ld. Counsel appearing for the assessee has taken the trouble of working out the tax effect which is found to be less than Rs.50 Lacs, but the same was calculated @20% on the entire amount of addition. Though, the same ought to have been calculated @30% except in the case of addition in respect of long term capital gain, thus, admittedly the tax effect is found to be more than Rs.50 Lacs. We also note that the Ld. DR also assisted the Court to best of ability to find out the actual tax effect involved in the appeal preferred by the Revenue and having regard to the facts and circumstances of the matter, particularly, the tax effect involved in this case, we do not hesitate to recall order dated 14.08.2019 in ITA No. 441/Ahd/2017 for A.Y. 2013-14. The registry is directed to fix the matter on board for hearing on 24.08.2023. 3. In the result, the Miscellaneous Application filed by the Revenue is allowed. This Order pronounced on 28/07/2023 Sd/- Sd/- (WASEEM AHMED) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 28/07/2023 S. K. SINHA True Copy आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं%धत आयकर आय ु 'त / Concerned CIT 4. आयकर आय ु 'त(अपील) / The CIT(A). 5. *वभागीय -त-न%ध, आयकर अपील य अ%धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड3 फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ!धकरण, अहमदाबाद / ITAT, Ahmedabaditio