The ACIT,Sabarkantha Circle, Himatnagar V. M/s. Sonata Ceramics Pvt.Ltd., Himatnagar

MA 34/AHD/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0105 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-07-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 05-02-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: PARIMALSINGH B PARM
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD [CONDUCTED THROUGH VIRTUAL COURT] BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER MISC. APPLICATION NO.34/AHD/2020 IN ITA NO.733/AHD/2016 : ASSTT.YEAR 2008-09 ACIT, S.K. CIRCLE HIMATNAGAR. VS. M/S.SONATA CERAMICA P.LTD. AT & PO GADHODA, TALOD ROAD HIMATNAGAR, SABARKANTHA 383 001 PAN : AAGCS 4523 D / APPLICANTS BY : SHRI L.P. JAIN, SR.DR / RESPONDENTS BY : SHRI TUSHAR HEMANI, SR.ADV. AND SHRI PARIMALSINGH B. PARMAR FOR ARS. ! '#$ %&' / DATE OF HEARING 16/07/2021 ()*+ %&' / DATE OF PRONOUNCEMENT 23/07/2021 -. / O R D E R PER RAJPAL YADAV, VICE PRESIDENT: PRESENT MISCELLANEOUS APPLICATION IS DIRECTED AT TH E INSTANCE OF THE REVENUE POINTING OUT AN APPARENT ERROR IN THE ORDER OF THE TRIBUNAL DATED 19.11.2019 PASSED IN ITA NO.733/AHD/2016, BY WHICH THE TRIBUNAL DISMISSED THE APPEAL OF THE REVENUE DUE TO LOW TAX EFFECT. 2. IN THE MA, THE REVENUE HAS INTERALIA PLEADED THAT APPEAL OF THE REVENUE FALLS WITHIN THE EXCEPTION LAID DOWN IN PAR A 10 OF THE CIRCULAR NO.03/2018 DATED 20.8.2018, AND AT THE SAME TIME TH E TRIBUNAL HAS GIVEN LIBERTY TO THE REVENUE TO FILE MA TO RECALL THE TRI BUNALS ORDER, IF ISSUE MA NO. 34 /AHD/20 20 - 2 - INVOLVED IN THE APPEAL FALLS WITHIN THE EXCEPTION C LAUSE PROVIDED IN THE CIRCULAR. IT IS FURTHER PLEADED THAT AS PER EXCE PTION CLAUSE PARA-10 OF CIRCULAR NO.3 OF 2018, IF THE ADDITION WAS MADE BAS ED ON THE INFORMATION RECEIVED FROM LAW ENFORCEMENT AGENCIES LIKE DGCEI, THEN THE DEPARTMENT CAN FILE APPEAL ON MERIT, EVEN THOUGH THE TAX EFFEC T OF AN APPEAL IS LOWER THAN THE REVISED MONETARY THRESHOLD. THE LD.DR AC CORDINGLY SUBMITTED THAT IMPUGNED ORDER OF THE ITAT DESERVES TO BE RECALLED, AND THE APPEAL OF THE REVENUE RESTORED AND DECIDED ON MERIT. 3. ON THE OTHER HAND, THE LD.COUNSEL FOR THE ASSESS EE OBJECTED TO RECALL OF THE IMPUGNED ORDER, AND PLACED RELIANCE ON CERTAIN DECISIONS VIZ. PCIT VS. NAWANY CONSTRUCTION CO. LTD., 98 TAXMANN.COM 294 (B OM); ITO VS. M/S.TIRUPATI PADDY PRODUCTS P.LTD., MA NO.371/AHD/2 019 AND ACIT VS. SHRI RAJESHKUMAR SHANTILAL SANGHAVI AND OTHERS, MA NO.39 6/AHD/2019 AND OTHERS. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND GONE TH ROUGH THE IMPUGNED ORDER OF THE TRIBUNAL AND ALSO CBDT CIRCULARS ISSUE D FROM TIME TO TIME IN THIS BEHALF. THE APPEAL OF THE REVENUE WAS DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN ACCORDANCE WITH CBDT CIRCULAR NO.17 OF 20 19 DATED 08.8.2019. LIBERTY WAS ALSO GIVEN TO THE DEPARTMENT TO FILE MA TO RECALL THE ORDER, IN CASE, LATER ON IT FOUND THAT CASE OF THE DEPARTMENT FALLS WITHIN THE EXCEPTION PROVIDED IN THE CBDT CIRCULAR. IN THE PRESENT MA, THE REVENUE HAS POINTED OUT THAT APPEAL OF THE REVENUE FALLS WITHIN THE EXC EPTION PROVIDED IN PARA-10 OF CIRCULAR 03/2018 DATED 20.8.2018. PARA-10 INTERALIA PROVIDE FOR CASES WHERE TAX EFFECT IS NOT RELEVANT, SUCH AS, WHERE A DDITION IS BASED ON INFORMATION RECEIVED FROM VARIOUS OTHER LAW ENFORCE MENT AGENCIES SUCH AS CENTRAL BUREAU OF INVESTIGATION INDIA / ENFORCEMENT DIRECTORATE / DEPARTMENT OF REVENUE INTELLIGENCE / SERIOUS FRAUD INVESTIGATI ON OFFICE / DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI). ADMITTEDLY, IN THE INSTANT CASE, THE MA NO. 34 /AHD/20 20 - 3 - ADDITION WAS MADE BY THE AO IN 143(3) ASSESSMENT BA SED ON THE INFORMATION RECEIVED FROM DGCEI, AHMEDABAD. IT IS PERTINENT TO NOTE HERE THAT THIS EXCEPTION IS EFFECTIVE FROM 20 AUGUST 2018, AND THU S, IT IS PERMISSIBLE FOR THE TAX DEPARTMENT TO APPEAL BEFORE THE TRIBUNAL EVEN I F THE TAX EFFECT IS WITHIN THE REVISED MONETARY THRESHOLD. IN THIS SCENARIO, WE FIND MERIT IN THE MA OF THE REVENUE BECAUSE THE CASE OF THE REVENUE FALLS I N THE CASES COVERED UNDER THE PARA-10. THEREFORE, WE RECALL THE IMPUG NED ORDER, AND RESTORE THE APPEAL OF THE REVENUE TO ITS ORIGINAL NUMBER FO R DECIDING THE APPEAL ON MERIT. REGISTRY IS DIRECTED TO LIST THE APPEAL FO R HEARING IN THE ORDINARY COURSE OF TIME. 5. IN THE RESULT, THE MISC. APPLICATION OF THE REVE NUE IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 23 / 07/2021 SD/- SD/ (WASEEM AHMED ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER VICE PRESIDENT AHMEDABAD; DATED 23/07/2021