The ITO, Ward-1 (1) (5), RAJKOT-GUJARAT V. Thakarshibhai Dayabhai Shingala, RAJKOT-GUJARAT

MA 43/RJT/2019

AI Insights

The case involves the Income Tax Department (Revenue) seeking a recall of an earlier ITAT order which had dismissed their appeal based on the CBDT Circular No.3 of 2018, which restricts appeals where the tax effect is below Rs. 20 lakhs. The Revenue argued that their case fell under an exception to this rule because they had accepted an audit objection, which was previously contested. The assessee, Shri Thakarshibhai Dayabhai Shingala, did not object to the recall and decision on merit. Consequently, the Tribunal allowed the MA, recalling the earlier order and setting a date for a detailed hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133717 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 9 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-01-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-01-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 11-04-2019
• Laws Referred To: CBDT Circular No.3 of 2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: INVOKING CBDT CIRCULAR NO.
• Keywords: Audit objection; Tax effect; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, राजकोट 瀈यायपीठ 瀈यायपीठ瀈यायपीठ 瀈यायपीठ, , , , राजकोट IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Misc. Application No.43/RJT/2019 IN ITA No.474/RJT/2015 Asstt.Year :2009-10 ITO, Ward-1(1)(5) Rajkot. Vs Shri Thakarshibhai Dayabhai Shingala At. Motamava, Kalawad Road Rajkot. PAN : BZYPS 5689 D (Applicant) (Responent) Assesseeby : None Revenue by : Shri B.D. Gupta, ld.Sr.DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 1 3 / 0 1 / 2 0 2 3 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 1 8 / 0 1 / 2 0 2 3 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER By way of the above Misc. Application the Revenue seeks recall of order of the ITAT passed in ITA No.474/Rjt/2015 dated 7.9.2018 for Asst.Year 2009-10 by pointing out certain discrepancies. 2. In the MA it is pleaded by the Revenue that the impugned order of the Tribunal dated 7.9.2018 (supra) in the Revenue’s appeal in ITA No.474/Rjt/2015 has been passed by invoking CBDT Circular No.3 of 2018, by which the CBDT has barred the Department not to file appeal before the ITAT where tax effect is above Rs.20 lakhs. MA No.43/Rjt/2019 2 However, this instruction and threshold limit of Rs.20 lakhs is subject to the exception provided in para-10(c) of the CBDT Instruction, that threshold limit of Rs.20 lakhs would not affect where Revenue audit objection in the case has been accepted by the Department. Therefore, though the tax effect in the impugned addition is below Rs.20 lakhs, however, since the Revenue has accepted the audit objection on the issue, which was contested before the ITAT in ITA No.474/RJT/2015, the appeal cannot be dismissed by virtue of CBDT Instruction cited (supra) as the case of the Revenue falls in the exception laid down in para 10 of the Circular. Therefore the Revenue has sought for recall the impugned order and deciding the issue on merit. 3. To this pleading of the Revenue, the assessee has filed a letter dated 13.1.2023 stating that he has no objection in allowing the MA of the assessee and decide the issue on merit. 4. We heard the ld.DR and gone through the impugned order of the ITAT and the MA of the Revenue. We find that the Tribunal had dismissed the appeal of the Revenue by invoking CBDT circular No.3 of 2018 wherein the Department is restricted for filing appeal before the ITAT where tax effect is below Rs.20 lakhs. By way of the present MA, the Revenue pointed out that though the tax effect is below Rs.20 lakhs, the case of the Revenue falls within the scope of para-10(3) of the above Instruction, wherein the Department has accepted Audit Objection on the issue which was contested before the Tribunal. Therefore, appeal of the Revenue being outside the scope of the CBDT Circular, the impugned order of the ITAT requires to be recalled and the matter be decided on merit. Since the assessee has no objection for recalling the impugned order, and MA No.43/Rjt/2019 3 taking the matter to be adjudicated on merit, we allow the MA filed by the Revenue, recall the impugned order dated 7.9.2018 and list the appeal bearing ITA No.474/RJT/2015 for hearing on 9 th February, 2023. The Registry is directed to inform the parties accordingly. 5. In the result, the MA of the Revenue is allowed. Order pronounced in the Court on 18 th January, 2023 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 18/01/2023