ITO 6(1)(2), MUMBAI V. M/S ANIMS CONNEXION PVT LTD, MUMBAI

MA 344/MUM/2022

AI Insights

The case involves the Income Tax Officer-6(1)(2) as the appellant and M/s Anims Connexion Pvt. Ltd. as the respondent. The Revenue filed a Miscellaneous Application seeking recall of the Tribunal's order dated 06.07.2022, which had dismissed their appeal due to the tax effect being below the prescribed limit. The Tribunal initially dismissed the appeal without considering the audit objections that were accepted by the Assessing Officer. However, upon the Revenue providing documentary evidence of these audit objections, the Tribunal acknowledged the oversight and recalled the earlier order, allowing the appeal to be heard again.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123788 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-05-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-02-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 22-11-2022
• Laws Referred To: CBDT Circular No. 3 of 2018, CBDT Circular No. 17 of 2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI SANDEEP SINGH KARHAIL (JUDICIAL MEMBER) MA No. 344/MUM/2022 (Arising out of ITA No. 584/MUM/2020) Assessment Year: 2011-12 Income Tax Officer-6(1)(2), (Erstwhile : Income-tax Officer 6.1.2, Mumbai] Room No. 503, 5 th floor, Aayakar Bhavan, M.K. Road, Mumbai-400020. Vs. M/s Anims Connexion Pvt. Ltd., 11-12, Nimco Tiles Compound Lalbaug Industrial Estate Lalbaug, Mumai-400012. PAN No. AAGCA 4637 A Appellant Respondent Assessee by : None Revenue by : Mr. Chetan Kacha, DR Date of Hearing : 17/02/2023 Date of pronouncement : 04/05/2023 ORDER PER OM PRAKASH KANT, AM By way of this Miscellaneous Application, the Revenue is seeking recall of the order of the Tribunal dated 06.07.2022 passed in ITA No. 584/Mum/2020 for assessment year 2011-12. 2. Despite notifying by registered post for the date of hearing, neither anyone attended on behalf of the respondentassessee, nor any application for adjournment was was served on the assessee through the Income also. In view of the above facts and circumstances, the Miscellaneous Application was heard after hearing the arguments of the Ld. Departmental Representative (DR). 3. The appeal of the Revenue tax effect with liberty to file an application for recall if support of exception to the tax effect circular Department. The relevant finding of the Tribunal is reproduced as under: “2.1 There is no mention in the order of the Assessing Officer or in the order of Ld. CIT(A) that action has been taken in view of audit objection, which has been accepted by the Ld. AO. In absence of any evidence on record that addition in dispute relates to R accepted by the Department, the Ground No. 4 of the Revenue that case falls under exception No. 10(c) to the CBDT Circular No. 3 of 2018 dated 11.07.2018, cannot be accepted. Accordingly, the tax effect involved in the appeal i.e. Rs prescribed i.e. Tribunal vide Circular No. 17 of 2019 dated 08.08.2019, the ground No. 4 of the appeal of the Revenue is dismissed. With liberty to file application for appeal if there are evidence to substantial the claim raised in Ground No. 4 of the appeal. The Ground No. 1 to 3 are rendered merely academic. 4. Before us, the Ld. DR Assessing Officer was made based on the r the case. The Ld. DR has filed a copy of a relevant memorandum of M/s AnimsConnexion Pvt. Ltd. any application for adjournment was filed. The notice for hearing the assessee through the Income-tax Department also. In view of the above facts and circumstances, the Miscellaneous Application was heard ex-parte qua the assessee after hearing the arguments of the Ld. Departmental Representative The appeal of the Revenue has been dismissed on account of tax effect with liberty to file an application for recall if exception to the tax effect circular are filed by the Department. The relevant finding of the Tribunal is reproduced as There is no mention in the order of the Assessing Officer or in the order of Ld. CIT(A) that action has been taken in view of audit objection, which has been accepted by the Ld. AO. In absence of any evidence on record that addition in dispute relates to Revenue audit objection accepted by the Department, the Ground No. 4 of the Revenue that case falls under exception No. 10(c) to the CBDT Circular No. 3 of 2018 dated 11.07.2018, cannot be accepted. Accordingly, the tax effect involved in the Rs.3,65,174/- being less than monetary limit prescribed i.e. Rs.50,00,000/- for filing appeal before the Tribunal vide Circular No. 17 of 2019 dated 08.08.2019, the ground No. 4 of the appeal of the Revenue is dismissed. With liberty to file application for restoring the appeal if there are evidence to substantial the claim raised in Ground No. 4 of the appeal. The Ground No. 1 to 3 are rendered merely academic.” Before us, the Ld. DR submitted that addition by the Assessing Officer was made based on the revenue audit objection in the case. The Ld. DR has filed a copy of a relevant memorandum of M/s AnimsConnexion Pvt. Ltd. 2 MA No. 344/M/2022 otice for hearing tax Department also. In view of the above facts and circumstances, the qua the assessee after hearing the arguments of the Ld. Departmental Representative dismissed on account of tax effect with liberty to file an application for recall if evidence in are filed by the Department. The relevant finding of the Tribunal is reproduced as There is no mention in the order of the Assessing Officer or in the order of Ld. CIT(A) that action has been taken in view of audit objection, which has been accepted by the Ld. AO. In absence of any evidence on record that evenue audit objection accepted by the Department, the Ground No. 4 of the Revenue that case falls under exception No. 10(c) to the CBDT Circular No. 3 of 2018 dated 11.07.2018, cannot be accepted. Accordingly, the tax effect involved in the being less than monetary limit for filing appeal before the Tribunal vide Circular No. 17 of 2019 dated 08.08.2019, the ground No. 4 of the appeal of the Revenue is restoring the appeal if there are evidence to substantial the claim raised in Ground No. 4 of the appeal. The Ground No. 1 to that addition by the evenue audit objection in the case. The Ld. DR has filed a copy of a relevant memorandum of audit objections duly issued by the Senior Audit Officer of Comptroller and Auditor documentary evidence, the case falls of the CBDT Circular No. 3 of 2018 dated 11.07.2018, therefore, the action of the Tribunal in dismissing the appeal being a mistake apparent from the record Registry is directed to fix intimation to the parties. 5. In the result, the Miscellaneous Application of the Revenue is allowed subject to the above terms. Order pronounced in the open Court on Sd/- (SANDEEP SINGH KARHAIL JUDICIAL MEMBER Mumbai; Dated: 04/05/2023 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// M/s AnimsConnexion Pvt. Ltd. audit objections duly issued by the Senior Audit Officer of Comptroller and Auditor General of India (C & AG). In view of above documentary evidence, the case falls under the exception No. 10(c) of the CBDT Circular No. 3 of 2018 dated 11.07.2018, therefore, the action of the Tribunal in dismissing the appeal being a mistake apparent from the record, the appeal is accordingly recalled. The Registry is directed to fix the appeal for hearing in due course under intimation to the parties. In the result, the Miscellaneous Application of the Revenue is allowed subject to the above terms. nced in the open Court on 04/05 Sd/ SANDEEP SINGH KARHAIL) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai M/s AnimsConnexion Pvt. Ltd. 3 MA No. 344/M/2022 audit objections duly issued by the Senior Audit Officer of G). In view of above under the exception No. 10(c) of the CBDT Circular No. 3 of 2018 dated 11.07.2018, therefore, the action of the Tribunal in dismissing the appeal being a mistake he appeal is accordingly recalled. The the appeal for hearing in due course under In the result, the Miscellaneous Application of the Revenue is 05/2023. Sd/- PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai