The ITO, Ward-2, Anand V. M/s. Indian Packaging Products, Anand

MA 47/AHD/2019

AI Insights

The case involves the Income Tax Officer (ITO), Ward-2, Anand as the applicant and M/s. Indian Packaging Products as the respondent. The Revenue filed a Miscellaneous Application seeking to recall an earlier ITAT order which dismissed their appeal on the grounds that the tax effect was below the monetary limit specified in a CBDT circular. However, the Revenue argued that the case fell under an exception to this rule as the appeal was based on an accepted audit objection. The ITAT agreed with the Revenue's position, noting that the case should be decided on its merits due to the exception outlined in the circular.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135695 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 6 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-08-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-05-2023
• Assessment Year: 2005-2006
• Appeal Filed On: 30-01-2019
• Laws Referred To: CBDT Circular No. 3 of 18 dated 11/07/2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

आयकरअपील यअ धकरण, अहमदाबाद यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ A” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And Ms MADHUMITA ROY, JUDICIAL MEMBER, MA No.47/Ahd/2019 in आयकरअपीलसं./ITA No.273/AHD/2013 नधा रणवष /Asstt. Year: 2005-2006 I.T.O, Ward-2, Anand. Vs. M/s. Indian Packaging Products, Jitodia, Tal., Anand-388001. PAN: AAAF17051H (Applicant) (Respondent) Assessee by : None Revenue by : Ms. Saumya Pandey Jain, Sr.D.R स ु नवाईक तार ख/Date of Hearing : 19/05/2023 घोषणाक तार ख/Date of Pronouncement: 16/08/2023 आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: The Revenue by way of this Miscellaneous Application is seeking to recall the order passed by the ITAT in ITA No. 273/Ahd/2013 vide order dated 27/07/2018 on the reasoning that there is a mistake apparent from the record. M.A No.47/Ahd/2019 ITA no.273/AHD/2013 A.Y. 2005-06 2 2. The Revenue in the Miscellaneous Application submitted that the main appeal was dismissed by the ITAT on the reasoning that the amount of tax involved in the dispute does not exceed limit specified in the circular and therefore the appeal filed by the Revenue is not maintainable. However, the case of the assessee was falling under the exception provided in para 10 of Circular No. 3/18 dated 11/07/2018 wherein the limit as provided in the circular for the disputed amount of tax was not applicable. In other words, the case of the Revenue has to be contested on merit irrespective of the amount disputed in the appeal filed by the Revenue. 3. In view of the above, the Ld. DR submitted that the relief granted by the ld. CIT-A has to be contested on merit and therefore the order passed by the ITAT should be recalled as there is a mistake apparent from the record. 4. We have heard the ld. DR and perused the materials available on record. As per the CBDT Circular No. 3 of 18 dated 11/07/2018, the appeal filed by the Revenue was not maintainable if it involves a tax effect which is less than Rs.20 lacs as applicable to the relevant time. However, the criteria for the monetary limit were subject to the certain exception provided in para 10 of the Circular which reads as under: 10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax entailed is less than the monetary limits specified in para 3 above or there is no tax effect: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX (c) Where Revenue Audit objection in the case has been accepted by the Department, or 4.1 In the case on hand, there is no ambiguity to the fact that the reopening was made based on the audit objection. This fact can also be verified from the letter dated 5-08-2010 which reads as under: M.A No.47/Ahd/2019 ITA no.273/AHD/2013 A.Y. 2005-06 3 In this connection, I am directed to convey that administrative approval of the CIT is hereby granted to take remedial action u/s.147 of the Act in the cae of M/s.Indian Packaging Products, Anand, for the A.Y. 2005-2006. 4.2 From the above, there remains no ambiguity that the case of the assessee falls under the exception. Therefore, the same has to be decided on merit. Accordingly, the Miscellaneous Application filed by the Revenue is allowed with the direction to the registry to restore the appeal to its original number and fix for a fresh hearing in due course of time under intimation to both the parties. 5. In the result, the Miscellaneous Application filed by the Revenue is allowed. Order pronounced in the Court on 16/08/2023 at Ahmedabad. Sd/- Sd/- (MADHUMITA ROY) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER TRUE COPY Ahmedabad; Dated 16/08/2023 Manish आदेशक त ल प!े षत/Copy of the Order forwarded to : आदेशान ु सार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपील यअ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धतआयकरआय ु त/ Concerned CIT 4. आयकरआय ु त(अपील) / The CIT(A) 5. !वभागीय $त$न ध, आयकरअपील यअ धकरण/ DR, ITAT, 6. गाड&फाईल / Guard file.