ITO, Ward -2, Cuddalore V. NLC HOWSICOS, Cuddalore

MA 42/CHNY/2019

AI Insights

The case involves a Miscellaneous Application filed by the revenue under section 254(2) of the Income-tax Act, 1961, challenging the Tribunal's earlier decision in ITA No. 2194/Chny/2017, which was based on the monetary limit for filing appeals as per CBDT Circular No. 3/18. The revenue sought to contest the merits of the case concerning the deduction under section 80P of the Act, which was not addressed in the original appeal due to the low tax effect involved. However, the revenue failed to amend the grounds of appeal within the statutory six-month period, leading to the dismissal of the application as not maintainable.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134892 (ITAT-CHENNAI)
• Duration Of Justice: 4 year(s) 1 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 09-03-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 19-02-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 80P; 254(2)

Judgement Text

आयकर अपीलीय अिधकरण, ‘डी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ᮰ी वी दुगाᭅ राव, ᭠याियक सद᭭य एवं ᮰ी मंजुनाथ. जी, लेखा सद᭭य के समᭃ BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER Misc. Application No. 42/Chny/2019 [In ITA No. 2194/Chny/2017] (िनधाᭅरणवषᭅ / Assessment Year: 2010-11) The Income Tax Officer, Ward 2, Cuddalore. v. M/s. NLC Howsicos, Old M.M.C. Complex, Opp to Thermal Power Station, Neyveli – 607 807, Cuddalore District. [PAN: AAAAN-2264-Q] (ᮧाथᭅक /Petitioner) (ᮧ᭜यथᱮ/Respondent) ᮧाथᭅक कᳱ ओरसे/ Petitioner by : None ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. P. Sajit Kumar, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 10.03.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 22.03.2023 आदेश /O R D E R PER MANJUNATHA. G, ACCOUNTANT MEMBER: The present Miscellaneous Application filed by the revenue u/s. 254(2) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) is directed against order of the Tribunal in ITA No. 2194/Chny/2017 dated 26.09.2018 and pertains to assessment year 2009-10. :-2-: MA. No: 42/Chny/2019 2. None appeared for the assessee. We have heard the ld. DR and considered relevant contents of Miscellaneous Application filed by the revenue. The revenue has filed Miscellaneous Application on 20.02.2019 and as per contents of said application, the issue has been agitated on merits in light of provisions of section 80P(2)(a)(vi) of the Act and argued that the assessee is not entitled for deduction u/s. 80P of the Act. However, the Tribunal has decided the issue in light of CBDT Circular No. 3/18 dated 11.07.2018, in light of monetary limit fixed for filing appeal before the Tribunal and held that since tax effect involved in present case is below 20 lakhs, appeal filed by the revenue is not maintainable. When Miscellaneous Application filed by the revenue was taken up for hearing, it was noticed that the revenue has challenged the issue on merits even though the tribunal has disposed off appeal on tax effect. Therefore, the Ld. DR present for the revenue sought time to amend grounds of appeal filed in Miscellaneous Application. However, revenue could not file revised grounds of appeal within six months from the date of receipt of order of the Tribunal by the concerned authorities as required under law. Therefore, we are of the considered view that Miscellaneous Application filed by the revenue is not :-3-: MA. No: 42/Chny/2019 maintainable because as per provisions of section 254(2) of the Act, the time limit for filing Miscellaneous Application is within six months from the end of the month in which the order was passed. Since, the Miscellaneous Application filed by the revenue is beyond six months from the end of the month, in which the order is passed, we are of the considered view that the Miscellaneous Application filed by the revenue is not maintainable and thus, the same is dismissed as not maintainable. 3. In the result, Miscellaneous Application filed by the revenue is dismissed. Order pronounced in the court on 22 nd March, 2023 at Chennai. Sd/- (वी दुगाᭅ राव) (V. DURGA RAO) ᭠याियकसद᭭य/Judicial Member Sd/- (मंजुनाथ. जी) (MANJUNATHA. G) लेखासद᭭य/Accountant Member चे᳖ई/Chennai, ᳰदनांक/Dated: 22 nd March, 2023 JPV आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ/CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF