The DCIT, Sabarkanth Circle, Sabarkantha V. M/s. Crystal Glaze (Now known as M/s. Crystal Ceramic Industries Ltd.), Ahmedabad

MA 353/AHD/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0924 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 26 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-12-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 15-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: A L THAKKAR
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI RAJPAL YADAV VICE PRESIDENT AND SHRI WASEEM AHMED , ACCOUNTANT MEMBER M.A NO S .353 & 354 /AHD/2019 IN ITA NO S . 740 & 739 /AHD/2017 / ASSTT. YEAR S 2008 - 09 AND 2007 - 08 A .C.I.T, CIRCLE - 2( 1 )(2) , AHMEDABAD . VS M/S CRYSTAL GLAZES (NOW KNOWN AS CRYSTAL CERAMIC INDUSTRIES LTD.) B - 19, VISHNU PARK SOCIETY, B/H BHAGYODAYA TENAMENTS, NARODA, AHMEDABAD - 382325 PAN : AACFC0 926 H (APPLICANT) ( RESPON D ENT ) REVENUE BY : SH R I L.P . JAIN , SR. D.R ASSESSEE BY : SHRI A.L. THAKKAR , A.R / DATE OF HEARING : 04 / 12/2020 / DATE OF PRONOUNCEMENT: 11 / 12/2020 / O R D E R PER WASEEM AHMED , ACCOUNTANT MEMBER : THE REVENUE BY WAY OF THIS MISCELLANEOUS APPLICATION, IS SEEKING TO RECALL THE ORDER PASSED B Y THE ITAT IN ITA NO S . 739 - 740/AHD/2017 DATED 14/08 /2019 ON THE GROUND THAT THERE IS A MISTAKE APPARENT FROM THE RECORD. M.A NO .353 & 354 /AHD/2019 IN ITA NO S .740 & 739 /AHD/2017 A.Y . S 2008 - 09 & 2007 - 08 2 2. THE LD. DR BEFORE US SUBMITTED THAT BOTH THE APPEAL S WERE DISMISSED BY THE ITAT ON THE REASONING THAT THE TAX EFFECT INVOLVE D WAS LESS THAN RS. 50 LACS IN PURSUANT TO THE CBDT CIRCULAR NO.17/2019 DAT ED 08/08/2019. HOWEVER, THERE WERE CERTAIN EXCEPTION S TO THE CIRCULAR PROVIDED IN PARA 10 OF THE CASE WHERE THE MONETARY LIMIT OF RS. 50 LACS QUA THE TAX EFFECT WILL NOT BE APPLIED. AS BOTH THE CASE S OF THE R EVENUE FALL UNDER SUCH EXCEPTION AS PER CLAUSE (E) OF PARA 10 OF THE CIR CULAR I.E. INFORMATION RECEIVED FROM DGCEI , THE LD. DR CONTENDED THAT THE APPEAL S FILED BY THE R EVENUE SHOULD BE RESTORED TO ITS ORIGINAL NUMBER S FOR HEARING ON MERIT. 3. ON THE OTHER HAND LD. A R DID NOT RAISE ANY OBJECTION ON THE CONTENTION OF THE LD. D R FOR THE REVENUE . 4. WE HAVE HEARD THE RIVAL CONTENTION S OF BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. ADMITTEDLY, THE APPEAL S FILED BY THE REVENUE WERE DISMISSED WITHOUT HEARING ON MERIT ON ACCOUNT OF LOW TAX EFFECT IN PURSUANT TO THE CBDT CIRCULAR NO. 1 7/2019 DATED 08/08/2019 . HOWEVER THERE WERE CERTAIN EXCEPTION S PROVIDED IN SUCH CIRCULAR WHEREIN TAX APPEAL HAS TO BE DECIDED ON MERIT DESPITE THE FACT T HAT THE DISPUTED AMOUNT OF TAX WAS LESS THAN RS.50 LACS. T HE RELEVANT EXTRACT OF THE CIRCULAR PROVIDING EXCEPTION IS REPRODUCED AS UNDER: (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). IN VIEW OF THE ABOVE WE HOLD THAT THE APPEAL S FILED BY THE REVENUE CAN - NOT BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. THUS THERE IS A MISTAKE IN THE ORDER OF THE ITAT WHICH IS AP PARENT FROM THE RECORD AND THE SAME NEEDS TO BE RECTIFIED WITHIN THE MEANING OF THE PROVISION M.A NO .353 & 354 /AHD/2019 IN ITA NO S .740 & 739 /AHD/2017 A.Y . S 2008 - 09 & 2007 - 08 3 OF SECTION 254(2) OF THE ACT . A CCORDINGLY WE RECALL THE ORDER OF THE ITAT AND RESTORE TO ITS ORIGINAL NUMBER. THE APPEAL S FILED BY THE REVENUE HA VE BEEN FIXED FOR FRESH HEARING DATED 18/01/2021. AS THE DATE OF HEARING HAS BEEN PRONOUNCED IN THE OPEN COURT THERE IS NO NEED TO ISSUE FRESH NOTICE TO ANY OF THE PARTY FOR INFORMING THE DATE OF HEARING. HENCE THE MISCELLANEOUS APPLICATION S FILED BY THE REVENUE ARE ALLOWE D. 5 . IN THE RESULT, BOTH THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE ARE ALLOWED . ORDER PRONOUNCED IN THE COURT ON 11 / 12 / 2020 AT AHMEDABAD. SD/ - ( RAJPAL YADAV ) VICE PRESIDENT SD/ - ( WASEEM AHMED ) ACCOUNTANT MEMBER (TRUE COPY) AHMEDABAD; DATED 11 / 12 / 2020 MANISH