ITO Ward-1(4), Chandigarh V. M/s Fateh Homes Pvt.Ltd, Chandigarh

MA 42/CHANDI/2020

AI Insights

The case involves three Miscellaneous Applications filed by the Revenue against a consolidated order dismissing their appeals due to low tax effect. The appeals pertained to the assessment years 2009-10 to 2011-12 for M/s Fateh Homes Pvt. Ltd. The Revenue argued that the case falls under an exception in the CBDT Circular which allows for appeals to be heard on merits despite the low tax effect, specifically citing information received from the Punjab Vigilance Bureau. The assessee contested this by pointing out that the Vigilance Bureau was not mentioned in the exception. However, the Tribunal interpreted the exception broadly to include information from any external law enforcement agency, thus recalling the previous order and scheduling a new hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135479 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 1 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-08-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-08-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 30-06-2020
• Laws Referred To: CBDT Circular No. 17/2019, CBDT Circular No. 03 of 2018, CBDT Circular dated 20/08/2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 22

Judgement Text

आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “ए” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH ᮰ी आकाश दीप जैन, उपा᭟यᭃ एवं ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM Miscellaneous Application Nos. 40 to 42/Chd/2020 In (आयकर अपील सं./ ITA Nos. 22 to 24/Chd/2020 िनधाᭅरण वषᭅ / Assessment Years : 2009-10 to 2011-12 The ITO Ward-1(4) Chandigarh बनाम M/s Fateh Homes Pvt. Ltd. # 2144 Sector -15C Chandigarh ᭭थायी लेखा सं./PAN NO: AABCF0763F अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri Parikshit Aggarwal, CA राज᭭व कᳱ ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 25/08/2023 उदघोषणा कᳱ तारीख/Date of Pronouncement : 28/08/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : These are three Miscellaneous Applications filed by the Revenue against the consolidated order passed by the Coordinate Bench dt. 04/02/2020 in ITA Nos. 22 to 24/Chd/2020 wherein the appeal filed by the Revenue were dismissed on account of low tax effect. 2. In this regard, the Ld. DR drawn our reference to the Misc. Application filed by the Revenue for A.Y 2009-10 to A.Y 2011-12 and It was submitted that though tax effect involved in all these appeals is below the monetary limit prescribed in the latest CBDT Circular No. 17/2019 dt. 08/08/2019, however, the case of the assessee falls under exception 10(e) of the CBDT Circular No. 03 of 2018 dated 11/07/2018, as amended by CBDT Circular dated 20/08/2018, as the information has been received from the office of the Punjab Vigilance Bureau, Punjab. It was accordingly submitted that since the case of the assessee is covered under the exception so provided in the CBDT Circular, the appeal filed by the Revenue for all these years need to be heard on merits and accordingly, the order so passed by the Coordinate Bench may be recalled and appeal filed by the Revenue be revived and be heard on merits. 2 3. The Ld. AR was heard who has tried to make out the case that the name of the Vigilance Bureau has not been mentioned in the exception so carved out in the CBDT Circular. It was further submitted that the cross appeals filed by the assessee have been decided by the Tribunal in favour of the assessee vide its order dt. 16/06/2021 on legal as well as merits of the case and even where the appeals filed by the Revenue are recalled, the matter is covered in favour of the case decision of the Tribunal in assessee’s own case for the respective assessment years. 4. We have heard the rival contentions and perused the material available on the record. The exception 10(e) as provided in the CBDT Circular dt. 20/08/2018 talks about the situation where the 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). We therefore find that the exception refers to information received from the external sources in the nature of law enforcement agencies and thereafter name of certain external law enforcement agencies, in the sense external to Income tax department, have been specified, however the said exception cannot be read as restricted to the information received from the specified law enforcement agencies only whose names are specified as the same is in the nature of inclusive definition (and not an exclusive definition) of law enforcement agency where the emphasis is on information received from the external law enforcement agencies and thereafter, name of certain external agencies have been specified. Therefore as far as the information received from the Vigilance Bureau Punjab is concerned, the same is clearly an external law enforcement agency outside the Income tax department and we find that there is no legal justification to exclude the same from the exception so carved out in the CBDT Circular. Further, we find that no distinction has been provided and can be read in respect of state law enforcement agency or central law enforcement agency. Therefore, where the matter is selected for scrutiny basis information received from the Vigilance Bureau Punjab, the respective appeals filed by the Revenue falls under exception 10(e) of CBDT Circular dated 20/08/2018 and the appeals cannot be dismissed on account of low tax effect and have to be necessarily heard on merits. We find that the said fact of the matter falling under the exception has not been brought to the notice of the Coordinate Bench and 3 only on account of low tax effect, the appeals filed by the Revenue have been dismissed and there is thus a mistake which is apparent from record. 5. As far as the Cross Appeals filed by the Assessee wherein it has been claimed that the matter has been decided in favour of the assessee, we do not deem it necessary to make any reference thereon at this stage of disposing off the misc. applications and at the same time assessee is at liberty to raise the said contention during the course of hearing on merits of the case. 6. In light of above, we, accordingly, recall the order passed by the Coordinate Bench so that both the parties be heard on merits of the case. We allow the respective Miscellaneous Applications filed by the Revenue and the hearing in all these cases are fixed for 18/10/2023. As informed in the open Court, separate notice is dispensed with. 7. In the result, Miscellaneous Applications filed by the Revenue are allowed. Order pronounced in the open Court on 28/08/2023 Sd/- Sd/- आकाश दीप जैन िवᮓम ᳲसह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा᭟यᭃ / VICE PRESIDENT लेखा सद᭭य/ ACCOUNTANT MEMBER AG Date: 28/08/2023 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant / 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar