ACIT, Circle- 3, Noida V. Ravi Sharma, Noida

MA 320/DEL/2019

AI Insights

The case revolves around a Miscellaneous Application (MA No.320/DEL/2019) filed by the Assessing Officer against an appellate order concerning the Assessment Year 2009-10. The application sought to recall an ex-parte order under Rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963, read with Section 254 (2) of the Income Tax Act. The Revenue contended that despite the tax effect being below Rs. 20 lakh, the case should be exempt from the monetary limits prescribed by the CBDT Circular No.3/2018 due to specific exceptions. However, the Tribunal found that the Revenue did not substantiate its claim that the case fell under any of the specified exceptions, leading to the dismissal of the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121765 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 02-02-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 17-04-2019
• Laws Referred To: Income Tax (Appellate Tribunal) Rules, 1963, Section 254 (2) of the Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A.K. KHURANA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER MA No.320/DEL/2019 (Arising from ITA No.3495/Del/2018) Assessment Year 2009-10 ACIT, Circle-3, Noida. vs. Ravi Sharma, B-201, E-8, Amrapali Exotica, Sector-50, Noida. TAN/PAN: AOKPS4925C (Appellant) (Respondent) Appellant by: Shri A.K. Khurana, CA Respondent by: Shri Anuj Garg, Sr.DR Date of hearing: 03 02 2023 Date of pronouncement: 03 02 2023 O R D E R PER PRADIP KUMAR KEDIA - A.M.: The captioned Misc. Application arises from the appellate order of the Tribunal dated 11.10.2018 passed in ITA No.3495/Del/2018 concerning Assessment Year 2009-10. The assessee has filed the Misc. Application for recalling of the ex-parte order under Rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963 r.w. Section 254 (2) of the Act. 2. As per the Misc. Application, the Assessing Officer seeks rectification of the appellate order of the ITAT and its restoration on the ground that despite the tax effect in the appeal of the Revenue being less than Rs. 20 lakh, the case of the assessee falls under paragraph 10(a) of the CBDT Circular No.3/2018 dated 11 th July, 2018, and therefore mandatory limit prescribed in the said circular cannot be applied to the facts of the present case. MA No.320/Del/2019 2 3. Paragraph 10(a) of the CBDT Circular No.3/2018 dated 11 th July, 2018, which has been modified by circular dated 20 th August, 2018 reads as under: “10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect. (a) Where the Constitutional validity of the provisions of an Act or rule is under challenge, or (b) Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account. (e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO/ Directorate General of GST Intelligence (DGGI). (f) Cases where prosecution has been filed by the Department and is pending in the Court.” 4. The Revenue could not justify its stand that the case of the assessee falls within any of the exception clause listed above. Therefore, prayer of the Revenue for recall of the appellate order by this Misc. Application is devoid of any merits and thus liable to be dismissed. 5. In the result, the Misc. Application filed by the Revenue stands dismissed. Order was pronounced in the open Court on 03 February, 2023. Sd/- [PRADIP KUMAR KEDIA] ACCOUNTANT MEMBER DATED: 03 February, 2023 Prabhat