JT COMMISSIONER OF INCOME TAX (OSD) CENTRAL CIRCLE-4(4), MUMBAI V. UMAX PACKAGING LTD,., MUMBAI

MA 397/MUM/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0224 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-11-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 12-10-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 24-05-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Audit objection; Tax effect
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL "F" BENCH, MUMBAI SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER MA No. 397/MUM/2023 (Arising out of ITA No. 2554/Mum/2021) (Assessment Year: 2013-14) Joint Commissioner of Income Tax (OSD), Central Circle- 4(4), Mumbai, Room No. 1918, 19 th Floor, Air India Building, Nariman Point, Mumbai - 400021 ................ Appellant M/s Umax Packaging Limited, 215, Raheja Plaza, Off Veera Desai Road, Andheri (West), Mumbai - 400053 [PAN: AAACU9291N] Vs ................ Respondent Appearance For the Appellant/Department For the Respondent/Assessee : : Shri Anil Sant Shri Madhur Agarwal Date Conclusion of hearing Pronouncement of order : : 13.10.2023 02.11.2023 O R D E R Per Rahul Chaudhary, Judicial Member: 1. The present Miscellaneous Application has been filed by the Revenue for rectification of order, dated 02/09/2022, passed by the Tribunal in ITA No. 2554/Mum/2021, pertaining to the Assessment Year 2013- 2014. 2. We have heard both the sides. The contention of the Revenue is that the order, dated 02/09/2022, whereby the appeal preferred by the Revenue was dismissed by the Tribunal on account of low tax effect, MA No. 397/Mum/2023 Assessment Year: 2013-14 2 suffers from a mistake apparent on record since the appeal filed by the Revenue falls under the exception clause as contained in Circular No. 3 of 2018, dated 11/07/2018 as amended by the letter No. [F.No. 279/Misc.142/2007-ITJ (PT)], dated 20/08/2018, on account of revenue audit objection having been accepted by the department. Per contra, Ld. Authorised Representative for the Assessee pointed out that the appeal preferred by the Revenue pertain to order, dated 23/02/2021, passed by the CIT(A) in appeal preferred by the Assessee against the Assessment Order, dated 30/12/2016, passed under Section 143(3) read with Section 153A of the Act. Since the present appeal by the Revenue does not relate to any assessment proceedings initiated pursuant to acceptance of audit objection by revenue audit party, the appeal is not covered by paragraph 10(c) of the Circular No.3 of 2018 relied upon by the Revenue. 3. We have perused Circular No. 3 of 2018 (F No.279/Misc. 142/2007- ITJ (Pt), dated 11/07/2018, issued by the Central Board of Direct Taxes (CBDT). The relevant extract of the aforesaid circular reads as under: “Subject: Revision of monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court-measures for reducing litigation-Reg. Reference is invited to Board's Circular No. 21 of 2015 dated 10.12.2015 wherein monetary limits and other conditions for filing departmental appeals (in Income-tax matters) before Income Tax Appellate Tribunal, High Courts and SLPS/ appeals before Supreme Court were specified. 2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPS/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below. MA No. 397/Mum/2023 Assessment Year: 2013-14 3 3. Henceforth, appeals/ SLPS shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder. S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000 It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. 4. – 9. xx xx 10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts.” 3.1. As per the above circular issued by CBDT, Revenue is to contest the issues on merits in the case where Revenue Audit Objection has been accepted by the Department notwithstanding the fact that tax effect is less than the specified monetary limit. 3.2. We have also perused the audit objection raised, a copy of which was placed before us by the Revenue vide letter, dated 21/08/2023. As per MA No. 397/Mum/2023 Assessment Year: 2013-14 4 audit objection higher addition should have been made in respect of accounted sales. The issue in appeal preferred by the Revenue before us was not the addition made pursuant to the aforesaid audit objection having been accepted by the department but the additions originally made by the Assessing Officer vide assessment order, dated 30/12/2016, passed under Section 143(3) read with Section 153A of the Act. Therefore, in our view, the appeal preferred by the Revenue did not fall within the scope of exception contained in Paragraph 10(c) of Circular No. 3 of 2018, dated 11/07/2018, issued by the CBDT. Accordingly, we reject the contention of the Revenue that the order, dated 02/09/2022, passed by the Tribunal in ITA No. 2554/Mum/2021, pertaining to the Assessment Year 2013-2014 suffers from any mistake apparent on record. 4. In result, the Miscellaneous Application preferred by the Revenue is dismissed. Order pronounced on 02.11.2023. Sd/- Sd/- (Amarjit Singh) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंक Dated : 02.11.2023 Alindra, PS MA No. 397/Mum/2023 Assessment Year: 2013-14 5 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त/ The CIT 4. प्रध न आयकर आय क्त / Pr.CIT 5. दिभ गीय प्रदिदनदध, आयकर अपीलीय अदधकरण, म ुंबई / DR, ITAT, Mumbai 6. ग र्ड फ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपि प्रदि //True Copy// उप/सह यक पुंजीक र /(Dy./Asstt. Registrar) आयकर अपीलीय अदधकरण, म ुंबई / ITAT, Mumbai