ITO, Ward- 3(2), Noida V. Suryakant, Gautam Budh Nagar

MA 596/DEL/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3996 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-06-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 03-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 148; 143(2)

Judgement Text

M.A. No. 596/Del/2019 1 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “SMC” NEW DELHI ] BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, S.M.C. Misc. App. No. 596/Del/2019 [ in आ.अ.स ं . I.T.A No. 6652/Del/2018 ] ( िनधाªरण वषª/Assessment Year: 2010-11 ) Income Tax Officer, Ward : 3 (2) Noida. बनाम Vs. Shri Suryakant, S/o. Chand Sharma, Vill. Surfabad, Sector: 73, Noida,Gautam Budh Nagar PAN No. CDNPS8944R अपीलाथŎ/Applicant ÿÂयथê/Respondent िनधाªåरतीकìओरसे /Assessee by : Shri Raghuraj Singh, Advocate; राजˢकीओरसे /Department by : Shri Sanjay Nargas, Sr. D.R.; स ु नवाईकìतारीख/ Date of hearing : 29/04/2022 उĤोषणाकìतारीख/Pronouncement on : 10/06/2022 आदेश / O R D E R PER C. N. PRASAD, J.M. : 1. Through this Misc. application the Revenue states that the Tribunal dismissed the appeal of the Revenue on the ground that the tax effect is less than Rs.20,00,000/- in view of Circular No. 3 of 2018 dated 11.07.2018. It is stated that the Tribunal over- looked the grounds of appeal, which falls under para 10A of the CBDT Circular No. 3 of 2018 dated 11.07.2018, which is an M.A. No. 596/Del/2019 2 exception to state that even if the tax effect is less than Rs.20,00,000/-, the Revenue can file appeal on such ground. 2. The ld. DR referring to Circular No. 21 of 2015 sub-clause (a) of clause 8 submits that the appeal of the Revenue will still lie in spite of low tax effect where the constitutional validity of the provisions of the Act or Rule are under challenge. The ld. DR referring to grounds of appeal of the Revenue submits that the ld. CIT (Appeals) annulled the assessment on the ground that no notice under Section 143(2) of the Income Tax Act, 1961 (the Act) was issued before completion of assessment. The ld. DR further submits that in the present case no return of income had been filed by the assessee in compliance to notice under Section 148 of the Act. Therefore, there is no requirement of issue of notice under Section 143(2) of the Act. 3. The ld. Counsel submits that the constitutional validity of provisions of the Act are not under challenge in Revenue’s appeal and, therefore, sub clause (a) of clause 8 are not applicable. Therefore, it is requested that the Misc. application of the Revenue be dismissed. 4. Heard rival submissions perused the order of the Tribunal in the case referred before me. On perusal of the order of the Tribunal it is noticed that the Tribunal dismissed the appeal of the Revenue as the tax effect in the present appeal is less than Rs.10,00,000/- in view of Circular No. 21 of 2015 dated 10.12.2015. It is the contention of the Revenue that the grounds raised in the appeal falls under exception provided in CBDT Circular in sub clause (a) of clause 8 as the Revenue is challenging the constitutional validity of the provisions of the Act. M.A. No. 596/Del/2019 3 5. On careful perusal of the grounds of appeal of the Revenue it is noticed that the Revenue challenged the order of the ld. CIT (Appeals) on the ground that the ld. CIT (Appeals) is not justified in annulling the assessment for non-issue of notice under Section 143(2) of the Act. The grounds raised by the Revenue nowhere suggest that it is challenging the validity of the provisions of the Act. Therefore, the contention of the Revenue that the grounds of appeal raised falls under exception provided in Circular is not correct. Therefore, I find no mistake apparent on record in dismissing the appeal of the Revenue as the tax effect is less than Rs.10,00,000/- and the case of the Revenue does not fall under any of the exceptions provided in the CBDT Circular No. 21 of 2015 dated 10.12.2015. 6. In the result, the Miscellaneous application filed by the Revenue, is dismissed. Order pronounced in the open court on : 10/06/2022. Sd/- ( C. N. PRASAD ) JUDICIAL MEMBER Dated : 10/06/2022. *MEHTA* Copy forwarded to : 1. Applicant; 2. Respondent; 3. CIT 4. CIT (Appeals) M.A. No. 596/Del/2019 4 5. DR: ITAT ASSISTANT REGISTRAR ITAT, New Delhi. Date of dictation 08.06.2022 Date on which the typed draft is placed before the dictating member 08.06.2022 Date on which the typed draft is placed before the other member 10.06.2022 Date on which the approved draft comes to the Sr. PS/ PS 10.06.2022 Date on which the fair order is placed before the dictating member for pronouncement 10.06.2022 Date on which the fair order comes back to the Sr. PS/ PS 10.06.2022 Date on which the final order is uploaded on the website of ITAT 10.06.2022 Date on which the file goes to the Bench Clerk 10.06.2022 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the order