The Assistant Commr. of Income Tax, Circle-3, JAMNAGAR V. M/s Akshar Metals, JAMNAGAR

MA 31/RJT/2020

AI Insights

The case involves the Assistant Commissioner of Income Tax, Circle-2(2), as the appellant, and M/s. Akshar Metals Pvt. Ltd. as the respondent. The core issue was the disallowance of a deduction claim of Rs.1,57,18,500/- under Section 10AA of the Income Tax Act for the assessment year 2014-15. Initially, the appeal was dismissed due to the low tax effect, not meeting the threshold set by the CBDT Circular. However, upon review, it was brought to notice that the tax effect was indeed above the threshold, leading to the filing of a Miscellaneous Application by the Revenue to recall the dismissal order. The tribunal allowed the application, emphasizing the maintainability of the appeal due to the higher tax effect.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299797 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 11 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-02-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-12-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 12-03-2020
• Laws Referred To: Section 10AA of the Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “RAJKOT” BENCH, RAJKOT [Conducted through E-Court at Ahmedabad] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER M. A . N o. 31 / Rj t/ 2 0 20 ( I n I TA N o. 3 8 7 /R j t/2 0 1 8) (A s se s s m e n t Y e a r : 2 0 14 - 1 5 ) T h e A s si s t a nt Co mm is s i on e r o f I nc om e T a x C ir c l e- 2( 2 ), 4 t h F lo o r , Ma n e k Ce n tr e , P . N . Ma r g , J a mn a ga r बनाम/ V s . M/ s . Ak s ha r Me t al s P vt . L t d. Sh o p N o. 1, Go ld en Po in t , Pl ot N o . 36 8 9 , R o a d N o 7, G I D C , Ph as e - I I I , D a r e d, J a m na g a r थायी लेखा सं./जीआइआर सं./P A N / G I R N o . : A A P FA 6 5 0 5 K (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Shri B. D. Gupta, Sr. D.R. यथ क ओर से/Respondent by : Shri Mehul Ranpura, A.R. स ु नवाई क तार ख / D a t e o f H e a r i ng 16/12/2022 घोषणा क तार ख /D a t e o f P ro n o u nc e me n t 27/02/2023 O R D E R PER Ms. MADHUMITA ROY - JM: The Miscellaneous Application has been filed by the Revenue seeking for recall of the order passed by the Bench on 20.08.2019, whereby and whereunder whereby and whereunder the matter was dismissed due to low tax effect. - 2 - MA No. 31/Rjt/2020(in ITA No.387Rjt/18) ACIT vs. M/s. Akshar Metals Pvt. Ltd. Asst.Year – 2014-15 2. The disallowance of claim of deduction of Rs.1,57,18,500/- under Section 10AA of the Act is the subject matter in the appeal. It has brought to our notice by the Revenue that the tax effect involved in this case is Rs.53,42,718/- i.e. more than Rs.50Lakhs that was prescribed by the CBDT Circular, due to which, the appeal is not barred to be preferred before us on technical ground. As the tax effect is more than Rs.50 Lakhs, in our considered opinion, the appeal is maintainable. Furthermore, this fact has not been able to be controverted by the Ld. AR. Under these circumstances, we allow this Miscellaneous Application. The Registry is directed to list the appeal afresh for hearing upon giving notices to the respective parties. 3. In the result, the Miscellaneous Application filed by the Revenue is allowed. This Order pronounced on 27/02/2023 Sd/- Sd/- (ANNAPURNA GUPTA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 27/02/2023 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. By order/आदेश से, D e p u t y/ A s s t t . R e g i s t r a r I T A T , R a j k o t