The DCIT, Circle-1(2), Ahmedabad V. M/s. Jay Somnath Iron Works, Ahmedabad

MA 352/AHD/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4892 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-09-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 14-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHAURYA S SUKLA
• Assessee Lawyers: S N DIVETIA
• Keywords: Tax effect

Judgement Text

PAGE 1 OF 3 , IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT) BEFORE, SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER M.A NO.352/AHD/2019 IN ./ ITA NO.681/AHD/2015 / ASSTT. YEAR: 2005-2006 D.C.I.T, CIRCLE-1(2), AHMEDABAD. VS. M/S. JAY SOMNATH IRON WORKS, 4, ASTA MITRA ESTATE, B/H JUPITER MILL, DIDESHWAR ROAD, AHMEDABAD. PAN: AABFJ1886A (APPLICANT) (RESPONDENT) REVENUE BY : SHRI SHAURYA S. SUKLA, SR.D.R ASSESSEE BY : SHRI S.N. DIVETIA, A.R / DATE OF HEARING : 17/09/2021 / DATE OF PRONOUNCEMENT: 27/09/2021 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE REVENUE BY WAY OF THIS MISCELLANEOUS APPLICATION IS PLEADING TO RECALL THE ORDER PASSED BY THE ITAT IN ITA NO. 681/AHD/2015 FOR A.Y. 2005-06 VIDE ORDER DATED 14/08/2019 ON THE REASONING THAT THE APPEAL OF THE DEPARTMENT WAS DISMISSED DUE TO LOW TAX EFFECT WHEREAS THE TAX EFFECT EXCEEDS RS. 50 LACS. M.A NO. 352/AHD/2019 IN ITA NO.681/AHD/2015 ASSTT. YEAR 2005-06 PAGE 2 OF 3 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN THE MISCELLANEOUS APPLICATION: THE HONBLE ITAT HAS ERRED IN LAW IN DISMISSING THE APPEAL OF THE APPELLANT DUE TO LOW TAX EFFECT AS THE TAX EFFECT IN THIS CASE IS RS.51,71,132/- WHICH IS ABOVE THE PRESCRIBED MONETARY LIMIT AS PER OF CBDT CIRCULAR NO.17/2019 DATED 08/08/2019. IT MAY BE SEEN THAT THE APPEAL WAS DISMISSED DUE TO LOW TAX EFFECT, HOWEVER, THE TAX EFFECT IN THIS CASE IS RS.51,71,132/- WHICH IS ABOVE THE PRESCRIBED MONETARY LIMIT AS PER OF CBDT CIRCULAR NO.17/2019 DATED 08/08/2019. THEREFORE, IT IS REQUESTED THAT IN THE FACTS AND CIRCUMSTANCES STATE HEREINABOVE. A. THE ORDER NO.681/AHD/2015 DATED 14/08/2019 PASSED BY THE HONBLE ITAT A BENCH, AHMEDABAD BE RECALLED AND HEAR THE APPLICANT HEREIN ON MERIT. B. C. TO PASS ANY OTHER OR FURTHER ORDERS, AS THIS HONBLE TRIBUNAL MAY DEEM FIR AND PROPER IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE REVENUE IN THE MISCELLANEOUS APPLICATION SUBMITTED THAT THE TAX EFFECT INVOLVED IN THE APPEAL IS MORE THAN RS. 50 LAKHS AND NOT HIT BY THE RECENT CBDT CIRCULAR NO. 17/2019 DATED 08/08/2019, WHICH WAS RELIED BY THE TRIBUNAL WHILE DISMISSING THE APPEAL OF THE REVENUE BEARING ITA NO. 681/AHD/2015 DATED 14/08/2019. THE REVENUE FURTHER SUBMITTED THAT THE TAX EFFECT INVOLVED IS RS. 51,71,132/- WHICH EXCEEDS THE MONETARY LIMIT OF RS. 50 LAKH AS PRESCRIBED IN THE RECENT CBDT CIRCULAR AND THEREFORE REQUESTED TO RECALL THE ORDER DATED 14/08/2019 WHICH WAS DISMISSED DUE TO LOW TAX EFFECT. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. AFTER CONSIDERING THE FACTS OF THE CASE AND THE SUBMISSIONS OF THE REVENUE, WE FIND THAT TAX EFFECT EXCEEDS RS. 50 LACS. THEREFORE, THE SAME CANNOT BE DISMISSED DUE TO LOW TAX EFFECT IN TERMS OF CBDT CIRCULAR NO. 17/2019 DATED 08/08/2019. THEREFORE, WE ARE INCLINED TO RECALL THE ORDER DATED 14/08/2019 OF THE ITAT, AHMEDABAD BENCH PASSED IN ITA NO.681/AHD/2015 FOR ASST. YEAR 2005-06. ACCORDINGLY, THE REGISTRY IS DIRECTED TO FIX THE APPEAL FOR HEARING ON 28/10/2021. M.A NO. 352/AHD/2019 IN ITA NO.681/AHD/2015 ASSTT. YEAR 2005-06 PAGE 3 OF 3 AS THE DATE OF HEARING WAS PRONOUNCED IN THE OPEN COURT, THE REQUIREMENT FOR ISSUING THE SEPARATE NOTICE IS DISPENSED WITH. 5. IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 27/09/2021 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) (WASEEM AHMED) VICE PRESIDENT ACCOUNTANT MEMBER (TRUE COPY) AHMEDABAD; DATED 27/09/2021 MANISH