Appeal Details
Counselvise Citation
[2021] 107 COUNSELVISE.COM (IT) 4893 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
CRN Number
Duration Of Justice
1 year(s) 9 month(s) 16 day(s)
Appellant
Respondent
Appeal Type
Miscellaneous Application
Pronouncement Date
27-09-2021
Appeal Filed By
Department
Order Result
Allowed
Bench Allotted
A
Assessment Year
2012-2013
Appeal Filed On
11-12-2019
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.375/AHD/2019 IN ./ ITA NO.1844/AHD/2016 / ASSTT. YEAR: 2012-2013 A.C.I.T, CIRCLE-2(1)(2), AHMEDABAD. VS. M/S MUDRA FINVEST GUJ. PVT. LTD., 10B, SUMATINAGAR SOCIETY, NR. SINDHI SCHOOL, USMANPURA, AHMEDABAD-380015. PAN: AABCM0526H (APPLICANT) (RESPONDENT) REVENUE BY : SHRI SHAURYA S. SUKLA, SR.D.R ASSESSEE BY : SMT ASTHA MANIAR WITH SHRI HARDIK MANIAR A.RS / 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. 1844/AHD/2016 FOR A.Y. 2012-13 VIDE ORDER DATED 14/08/2019 ON THE REASONING THAT THE APPEAL OF THE DEPARTMENT WAS DISMISSED DUE TO TAX EFFECT WHEREAS THE TAX EFFECT EXCEEDS RS. 50 LACS. M.A NO. 375/AHD/2019 IN ITA NO.1844/AHD/2016 ASSTT. YEAR 2012-13 PAGE 2 OF 3 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN THE MISCELLANEOUS APPLICATION: IN THIS CASE, THE APPLICANT MOST RESPECTFULLY SUBMITS THAT THE APPLICANT HEREIN HAD FILED ITA NO. 1844/AHD/2016 OF THE INCOME TAX ACT, 1961 BEFORE THE HON'BLE ITAT, AHMEDABAD, AGAINST ORDER DATED 14.08.2019 OF ITAT, AHMEDABAD IN THE ABOVE MENTIONED CASE. 1. IN THIS CASE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE INCOME TAX ACT ON 31.03.2015 ASSESSING THE TOTAL INCOME AT RS. 3,99,45,816/- AFTER MAKING ADDITION U/S. 2(22){E) OF THE IT ACT AMOUNTING TO RS. 13,53,113/-, DISALLOWANCES U/S. 14A OF RS. 12,21,613/-, BOGUS PURCHASE OF RS. 2,63,08,871/-, COMMISSION EXPENSES OF RS. 19,29,530/- AND CASH SALES OF RS. 2,20,000/-. 2. BEING AGGRIEVED WITH THE ORDER OF THE A.O., THE ASSESSEE PREFERRED APPEAL BEFORE CIT(A). THE LD. CIT(A) HAS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE DELETING THE DISALLOWANCE U/S. 14A OF THE ACT TO THE EXTENT OF RS. 11,50,177/-, BOGUS PURCHASE TO THE .EXTENT OF 2,58,08,871/-, COMMISSION EXPENSES AMOUNTING TO RS. 19,29,530/-. THEREAFTER, THE DEPARTMENT PREFERRED APPEAL BEFORE THE HON'BLE ITAT. THE HON'BLE ITAT, AHMEDABAD DISMISSED THE APPEAL OF THE REVENUE THE APPEAL OF THE REVENUE ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CIRCULAR NO. 17/2019 DTD 08.08.2019. 3. PERUSAL OF THE ITAT ORDER DATED 14.08.2019 REVELS THAT HON'BLE ITAT HAS NOT GONE INTO THE MERITS OF THE MATTER. THE HON'BLE ITAT HAS NOT ADJUDICATED ANY ISSUE ON MERITS, DISPOSED OFF THE APPEAL FILED BY THE REVENUE MERELY STATING THAT THE TAX EFFECT IN THE EXTANT CASE IS BELOW THE LIMIT PRESCRIBED IN THE CIRCULAR NO. 17/2019 DTD 08.08.2019. HOWEVER, ON VERIFICATION OF THE CASE RECORDS, IT IS SEEN THAT TAX EFFECT INVOLVED IS RS. 95,89,236/- WHICH IS ABOVE THE PRESCRIBED LIMIT VIDE CIRCULAR NO. 17/2019 DTD 08.08.2019. THEREFORE THE APPEAL IS REQUIRED TO BE RESTORED BY WAY OF FILING MISCELLANEOUS APPLICATION. M IT IS THEREFORE RESPECTFULLY SUBMITTED AND PRAYED THAT IN THE FACTS AND CIRCUMSTANCES STATED HEREINABOVE, THIS HON'BLE TRIBUNAL PLEASED TO: (A) TO RECALL THE ORDEIR DATED 14.08.2019 PASSED BY THIS HON'BLE ITAT 'A' BENCH, AHMEDABAD IN ITA NO. 1844/AHD/2016 AND HEAR THE APPLICANT HEREIN ON MERITS. (B) TO PASS ANY OTHER OR FURTHER ORDERS, AS THIS HON'BLE TRIBUNAL MAY DEEM FIT 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. 1844/AHD/2016 DATED 14/08/2019. THE REVENUE FURTHER SUBMITTED THAT THE TAX EFFECT INVOLVED IS RS. 95,89,236/- 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. M.A NO. 375/AHD/2019 IN ITA NO.1844/AHD/2016 ASSTT. YEAR 2012-13 PAGE 3 OF 3 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.1844/AHD/2016 FOR ASST. YEAR 2012-13. ACCORDINGLY, THE REGISTRY IS DIRECTED TO FIX THE APPEAL FOR HEARING ON 15/12/2021. 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
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