The Dy. Commissioner of Income Tax, Circle-1(1)(1), Vadodara V. Ambalal Sarabhai Enterprises Limited, Vadodara

MA 43/AHD/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2300 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-10-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 31-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R R MAKWANA
• Assessee Lawyers: BIREN SHAH
• Keywords: Tax effect
• Section: 207

Judgement Text

PAGE 1 OF 4 , IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER M.A NO.43/AHD/2019 IN ./ ITA NO.1427/AHD/2018 / ASSTT. YEAR: 1986-1987 D.C.I.T., CIRCLE-1(1), VADODARA. VS. M/S.AMBALAL SARABHAI ENTERPRISES LTD., WADI, VADODARA-390023. PAN: AABCA6893K (APPLICANT) (RESPONDENT) REVENUE BY : SHRI R.R. MAKWANA SR.D.R ASSESSEE BY : SHRI BIREN SHAH, A.R / DATE OF HEARING : 01/10/2021 / DATE OF PRONOUNCEMENT: 25/10/2021 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE REVENUE BY WAY OF THIS MISCELLANEOUS APPLICATION IS PLEADING TO RECALL THE COMMON ORDER PASSED BY THE ITAT IN ITA NO. 1427/AHD/2017 FOR A.Y. 1986-87 DATED 27/07/2018 ON THE REASONING THAT THERE IS A MISTAKE IN THE ORDER OF THE ITAT APPARENT FROM RECORD. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN THE MISCELLANEOUS APPLICATION: M.A NO.43/AHD/2019 IN ITA NO.1427/AHD/2018 ASSTT. YEAR 1986-87 PAGE 2 OF 4 1. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND IN LAW, HON'BLE ITAT ERRED IN DISMISSING THE APPEAL OF THE REVENUE IN VIEW OF THE CBDT INSTRUCTION NO. 03/2018 IGNORING THE FACT THAT THE TAX EFFECT INVOLVED IS RS.27.19 LACS WHICH IS ABOVE PRESCRIBED LIMIT FOR FILING OF APPEAL BEFORE TRIBUNAL'. THE APPEAL TO HON'BLE I.T.A.T. BY WAY OF MISC. APPLICATION IS BEING FILED ON ACCOUNT OF THE FACT THAT THE TAX EFFECT IN THIS CASE IS OF RS.27.19 LACS WHICH IS ABOVE THE PRESCRIBED LIMIT FOR FILLING AN APPEAL AS PER BOARD'S CIRCULAR NO. 03/2018 DATED 11.07.2018. RELIEF CLAIMED IN M.A. IT IS THEREFORE PRAYED THAT THE HON'BLE I.T.A.T. LTE-A BENCH, AHMEDABAD MAY RECALL ITS ORDER DATED 27.07.2018 IN I.T.A. NO. 1427/AHD/2017 AND OTHERS 230 FIE, 11 COS AS PER ANNEXURE, IN THE 1986-87 [AS REFLECTED IN SR. NO. 207 OF ITA NO. 1427/AHD/2018], WHEREIN THE HON'BLE I.T.A.T. LTE-A BENCH, AHMEDABAD DISMISSED THE APPEAL OF THE DEPT ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF BOARD'S CIRCULAR NO. 03/2018 DT. 11.07.2018. IT IS ALSO PRAYED THAT THE HON'BLE I.T.A.T. LTE-A BENCH, AHMEDABAD MAY KINDLY DECIDE THE GROUNDS OF APPEAL RAISED BY THE DEPT ON MERITS OF THE CASE, CONSIDERING THE FACT THAT THE TAX EFFECT OF RS.27.19 LACS IN THE ASSESSEE'S CASE FOR A.Y. 1986-87 IS MORE THAN THE MONETARY LIMIT FOR FILING APPEAL. 3. THE REVENUE IN THE MISCELLANEOUS APPLICATION SUBMITTED THAT THE HONBLE ITAT HAS DISPOSED OF THE APPEAL OF THE REVENUE RELYING ON THE OLD CBDT CIRCULAR NO.03/2018 DATED 11/07/2018 WHICH WAS APPLICABLE ON THE APPEALS OF REVENUE INVOLVING TAX EFFECT LESS THAN RS. 20 LACS ONLY. HOWEVER, THE TAX EFFECT IN THE PRESENT CASE IS CALCULATED AT RS. 27.19 LACS WHICH EXCEEDS THE AMOUNT OF RS. 20 LACS. THEREFORE, THE REVENUE HAS REQUESTED TO RECALL OF THE ORDER PASSED BY THE ITAT IN ITA NO. 1427/AHD/2018 FOR A.Y. 1986-87 AND DECIDE THE ISSUE AFRESH ON MERIT. 4. ON THE CONTRARY THE LD. AR DID NOT RAISE ANY OBJECTION, IF THE MATTER IS RECALLED. 5. 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 THE TAX EFFECT EXCEEDS RS. 20 LACS AND THEREFORE, THE APPEAL OF THE REVENUE CANNOT BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF OLD CBDT CIRCULAR NO. 03/2018 DATED 11/07/2018. ACCORDINGLY, WE ARE INCLINED TO RECALL THE COMMON ORDER OF THE ITAT, AHMEDABAD A BENCH PASSED IN ITA NO. 1427/AHD/2018 FOR ASST. YEAR 1986-87 DATED 27/07/2018 FOR FRESH ADJUDICATION AS PER LAW. M.A NO.43/AHD/2019 IN ITA NO.1427/AHD/2018 ASSTT. YEAR 1986-87 PAGE 3 OF 4 5.1 IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS ALLOWED. NOW COMING TO THE APPEAL OF REVENUE BEARING ITA NO.1427/AHD/2018 FOR A.Y. 1986-87 6. WITH THE CONSENT OF BOTH THE PARTIES, WE PROCEED TO DISPOSE OF THE ABOVE APPEAL OF THE REVENUE HEREIN BELOW. 7. IT WAS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESSEE THAT THOUGH THE APPEAL OF THE REVENUE HAS BEEN RESTORED DUE TO TAX EFFECT ABOVE THE LIMIT AS PER THE CBDT CIRCULAR NO.3 OF 2018 DATED 11/07/2018, BUT IN VIEW OF RECENT CIRCULAR OF THE CBDT NO. 17 OF 2019, WHERE THRESHOLD LIMIT FOR FILING THE APPEAL BY THE REVENUE HAS BEEN RAISED FROM RS. 20 LAKHS TO RS. 50.00 LAKHS, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. IT IS BECAUSE, ADMITTEDLY THE TAX EFFECT IS BELOW RS. 50 LAKHS. 8. ON THE OTHER HAND, THE LD. DR DID NOT DISPUTE THE APPLICABILITY OF THE RECENT CBDT CIRCULAR BEARING NO. 17 OF 2019 IN THE APPEAL FILED BY THE REVENUE AND LEFT THE ISSUE TO BE DECIDED AT THE DISCRETION OF THE TRIBUNAL IN ACCORDANCE WITH THE LAW. 9. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE IMPUGNED ORDERS AND ALSO RECENT CIRCULAR. IN THE RECENT CIRCULAR OF THE CBDT CITED (SUPRA) THE THRESHOLD LIMIT FOR FILING THE APPEAL BY THE REVENUE HAS BEEN INCREASED FROM RS. 20 LAKHS TO RS. 50 LAKHS BEFORE THE TRIBUNAL. THE TAX EFFECT IN THE INSTANT APPEAL OF THE REVENUE IS BELOW RS. 50 LAKHS, AND THEREFORE THE SAME IS IN VIOLATION OF THE ABOVE CBDT CIRCULAR. THUS, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE, AND THE SAME IS ACCORDINGLY DISMISSED DUE TO LOW TAX EFFECT. 10. IN THE RESULT, THE APPEAL FILED BY THE BY THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. M.A NO.43/AHD/2019 IN ITA NO.1427/AHD/2018 ASSTT. YEAR 1986-87 PAGE 4 OF 4 11. IN THE RESULT, MA FILED BY THE REVENUE IS ALLOWED , AND THE APPEAL OF THE REVENUE IS DISMISSED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE COURT ON 25/10/2021 AT AHMEDABAD. SD/- SD/- (MADHUMITA ROY) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTAN T MEMBER (TRUE COPY) AHMEDABAD; DATED 25/10/2021 MANISH