The ITO, Ward-2(1)(2), Ahmedabad V. M/s. Jubilee Tradelink Pvt. Ltd., Ahmedabad

MA 37/AHD/2020

AI Insights

The case involves the Income Tax Department (Revenue) and M/s. Jubilee Tradelink Pvt. Ltd. concerning the assessment year 2008-09. The Revenue sought to recall an ITAT order that dismissed their appeal due to the low tax effect, which was below the threshold prescribed by the CBDT circulars. The Tribunal initially dismissed the Revenue's appeal based on these thresholds. However, upon the Revenue's application citing an audit objection that was accepted by the Department, the Tribunal found that the case fell within an exceptional clause of the circular, allowing for a merit-based review despite the tax effect being below the usual threshold. Consequently, the Tribunal recalled its earlier order and set the case for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134520 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-06-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-05-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 04-02-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 143(3); 254(2)

Judgement Text

आयकर अपीलीय अिधकरण, अहमदाबाद ᭠यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ A” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And Ms. MADHUMITA ROY, JUDICIAL MEMBER, M.A No.37/Ahd/2020 in आयकर अपील सं./ITA No. 806/Ahd/2016 िनधाᭅरण वषᭅ/Asstt. Years: 2008-2009 I.T.O, Ward-2(1)(2), Ahmedabad. Vs. M/s. Jubilee Tradelink Pvt. Ltd., 9-Bansidhar Apartment, Gyanganga Classes, Jawaharnagar, Vasna, Ahmedabad-380015. PAN: AABCJ0614P Revenue by : Ms Saumya Pandey Jain, Sr.D.R Assessee by : None सुनवाई कᳱ तारीख/Date of Hearing : 19/05/2023 घोषणा कᳱ तारीख /Date of Pronouncement: 16/06/2023 आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: By this Miscellaneous Application, the Revenue has requested for recalling of the order passed by the ITAT Ahmedabad Bench ‘A’ dated 16/10/2019 in M.A. No. 115/Ahd/2016 arising out of ITA No. 806/Ahd/2016 for AY 2008-09, dismissing the appeal of the Department due to low tax effect. 2. When the matter was called for hearing, neither anyone appeared on behalf of the assessee, nor any adjournment application was filed by the assessee. Admittedly, the matter has been listed for hearing on several occasions. Therefore, in the absence of any cooperation from the assessee, we decided to M.A No.37/Ahd/2020 in ITA No. 806/Ahd/2016 A.Y. 2008-09 2 proceed with the hearing of the matter ex-parte to the assessee and after hearing the learned DR appearing on behalf of the revenue. 3. The ld. DR appeared for the Revenue before us pleaded in the miscellaneous application that the revenue audit objection was accepted by the Department and thereafter assessment order u/s 143(3) r.w.s. 147 of the Act, 1961 was made dated 26-03-2014 after making addition on account of STCG for Rs. 44,98,600/- and disallowing the claim of STCL of Rs. 30,10,000/- only. On appeal by the assessee, the Ld. CIT(A) vide order dated 05-01-2016 has deleted the addition and disallowances made by the AO. 4. Dissatisfied with the order of the CIT(A), the Revenue came up in appeal before the Tribunal in ITA No. 806/Ahd/2016. The Tribunal dismissed the appeal of the Revenue vide order dated 16-10-2016. The Tribunal was of the view that the tax effect involved in this case is less than Rs. 20 lakhs because of the relief granted by the ld. CIT(A). Therefore, in view of the Board Instruction bearing No. 3 of 2018 dated 11/07/2018, such appeal is not maintainable before the Tribunal. 5. Thereafter, a Miscellaneous Application in MA No. 115/Ahd/2016 was filed stating that the tax effect involved was of Rs. 23,20,157/- exceeding the threshold limit prescribed in the CBDT circular No. 03/2018 dated 11-07-2018 which was allowed. However, the ITAT again dismissed the appeal of the assessee vide order dated 16-10-2019 by holding that the tax effect involved in this case is less than Rs. 50 lakhs. Therefore, in view of the circular No. 17 of 2019 dated 08/08/2019 such appeal is not maintainable before the Tribunal. 6. It has been further pleaded that ITAT failed to consider the fact that the issues relating to the addition/ disallowance made by the AO falls under the exceptional clause 8(c) of the Circular No. 03/2018 dated 11-07-2018. According to sub-clause (c) of clause 8 if a Revenue audit objection has been accepted by M.A No.37/Ahd/2020 in ITA No. 806/Ahd/2016 A.Y. 2008-09 3 the Department, then the appeal on such issues would be contested on merit and will not be withdrawn by virtue of these instructions. Since the present case was reopened on audit objection, therefore, it falls within the exceptional clause provided in the Instruction. Accordingly, we hold that there is a mistake in the order of the ITAT within the meaning of the provisions of section 254(2) of the Act. Consequently, we recall the order passed by the ITAT for fresh adjudication as per the provisions of law. The registry is directed to list the case for a fresh hearing dated 14 August 2023 under intimation to both the parties. Hence, miscellaneous application filed by the revenue is allowed. 7. In the result, the miscellaneous application filed by the revenue is allowed. Order pronounced in the Court on 16/06/2023 at Ahmedabad. Sd/- Sd/- (MADHUMITA ROY) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 16/06/2023 Manish