The ACIT, Circle-2(1)(1), Ahmedabad V. M/s. MAS Financial Services Ltd., Ahmedabad

MA 63/AHD/2022

AI Insights

The case involves the Income Tax Department (Appellant) and M/s. MAS Financial Services Ltd. (Respondent). Initially, the ITAT dismissed the Revenue's appeal due to the low tax effect, adhering to the CBDT Circular No. 17/2019. However, following a Revenue Audit objection accepted by the Department, it was claimed that the case falls under an exception to the low tax effect rule. Consequently, the Department filed a Miscellaneous Application (M.A.) to recall the Tribunal's earlier order, which was granted based on the cited exception, leading to the setting of a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131365 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-11-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-08-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 17-08-2022
• Laws Referred To: CBDT Circular No. 17/2019, Circular No. 3/2018 as amended on 20-08-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 64

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Shri Waseem Ahmed, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member The A C I T, Cir c l e- 2( 1 )( 1) , Ah me da b ad (A p p e ll a n t) V s M/ s . M A S F in a n c ia l Se r v i ce s Lt d . A h me da ba d PA N: A A B C M0 64 0 A ( R e s p on de nt ) As s e s s e e b y : N o ne R ev en u e by : Sh r i S an j ay Ku ma r , Sr . D. R . D at e of he ar in g : 11- 09 - 2 02 3 D at e of pr o n ou nc e me nt : 03 - 1 1 - 2 02 3 आदेश/ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:- This is the Miscellaneous Application filed by the Department against the order dated 19-05-2022 in ITA No. 1433/Ahd/2019. 2. In the aforesaid order, ITAT dismissed the appeal of the Revenue on the ground that appeal is not maintainable due to low tax effect as per CBDT Circular No. 17/2019 dated 08-08-2019. In the aforesaid order, ITAT had also clarified, if on re-verification made by the Assessing Officer, it is found that tax effect is more than Rs. 50 lakhs or the case falls within the exception clause of the Circular, then, M.A. No. 63/Ahd/2022 (In ITA No. 1433/Ahd/2019) Assessment Year 2011-12 M.A No. 63/Ahd/2022 (In I.T.A No. 1433/Ahd/2019) A.Y. 2011-12 Page No. ACIT vs. M/s. MAS Financial Services Ltd. 2 the Revenue will be at liberty to file Miscellaneous Application to recall the Tribunal’s order. 3. The Department has filed the present M.A. and submitted that Revenue Audit objection has been accepted by the Department and therefore, the case of the Department falls under exception no. 10(c) mentioned in Circular No. 3/2018 as amended on 20-08-2018. 4. Accordingly, looking into the aforesaid contention put forth by the ld. Departmental Representative, the matter is hereby recalled since it is falling under exemption no. 10(c) in Circular No. 3/2018 as amended on 20-08-2018. 5. Accordingly, the matter is recalled and fixed for fresh hearing in due course. Order pronounced in the open court on 03-11-2023 Sd/- Sd/- (WASEEM AHMED) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 03/11/2023 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील य अ धकरण, अहमदाबाद