AI Insights
The case involves the Income Tax Department (Revenue) appealing against the dismissal of their earlier appeal due to the tax effect being below the prescribed monetary threshold by the CBDT Circular No. 17 of 2019. The Revenue argued that their case fell under an exception in CBDT Circular No. 03/2018, which allows for appeals if the addition was based on information from law enforcement agencies like the DGCEI. The Tribunal agreed with the Revenue's position, recalling the earlier order and restoring the appeal for a decision on its merits.
Appeal details
Counselvise Citation
[2023] 140 COUNSELVISE.COM (IT) 133604 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
11 month(s) 7 day(s)
Appellant
Respondent
Appeal Type
Miscellaneous Application
Pronouncement Date
25-07-2023
Appeal Filed By
Department
Order Result
Allowed
Bench Allotted
C
Next Hearing Date
20-07-2023
Assessment Year
2011-2012
Appeal Filed On
17-08-2022
Judgement Text
आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘C’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD ]BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SMT. MADHUMITA ROY, JUDICIAL MEMBER, JUDICIAL MEMBER Misc.Application No.64/Ahd/2022 IN ITA No.170/Ahd/2020 Assessment Year : 2011-12 ACIT, Cir.2(1)(2) Ahmedabad. Vs. M/s.Laxon Steels Ltd. PAN : AAACL 5064 A Plot No.235, Village Sari Sarkhej Bavla Highway Sanand, Ahmedabad. 0 अपीलाथ / (Appellant) यथ /(Respondent) Assesseeby : Shri S.N.Soparkar, Sr.Advocate Revenue by : Ms.Saumya Pandey, Jain, Sr.DR स ु नवाई क तार ख/Date of Hearing : 21/07/2023 घोषणा क तार ख /Date of Pronouncement: 26/07/2023 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER Present Misc. Application(MA) is filed by the Revenue under section 254(2) of the Income Tax Act, 1961 ("the Act" for short) seeking recall of theorder of the ITAT passed in ITA No.170/Ahd/2020 dated 6.5.2022 dismissing the Revenues appeal on account of tax effect being below that prescribed by the CBDT for filing appeals vide Circular No.17 of 2019 dt 08/08/2019. 2. In the MA, the Revenue has interalia pleaded that the appeal of the Revenue falls within the exception laid down in para 10(e) of the Circular No.03/2018 dated 20.8.2018, and, it was pointed out that the Tribunal had given liberty to the Revenue to file MA to recall the Tribunal’s order, if issue involved in the appeal falls within the MA No.64/Ahd/2022 2 exception clause provided in the Circular. It is further pleaded that as per exception clause para-10(e) of Circular No.3 of 2018, if the addition was made based on the information received from law enforcement agencies like DGCEI, then the Department can file appeal on merit, even though the tax effect involved in the appeal is lower than the revised monetary threshold. It was pointed out that in the present case the assesses case was reopened on the basis of information gathered on the basis of search conducted by the Director General of Central Excise Intelligence (DGCEI) in the premise of one M/s Paras Bhavani Steel Private Limited. Information obtained therefrom was passed to the AO of the assessee by the DCIT,Circle 3(1)(1), Ahmedabad for taking necessary action. Copy of the letter of the DCIT,Circle 3(1)(1), Ahmedabad alongwith report of the DGCEI was filed before us. The ld.DR accordingly submitted that impugned order of the ITAT deserves to be recalled, and the appeal of the Revenue restored and decided on merit. 3. Heard both the sides and gone through the impugned order of the Tribunal and also CBDT circulars issued from time to time in this behalf. The appeal of the Revenue was dismissed on account of low tax effect in accordance with CBDT Circular NO.17 of 2019 dated 08.8.2019. Liberty was also given to the Department to file MA to recall the order, in case, later on it was found that case of the Department falls within the exception provided in the CBDT Circular. In the present MA, the Revenue has pointed out that appeal of the Revenue falls within the exception provided in para- 10(e) of Circular 03/2018 dated 20.8.2018. Para-10 interalia provide for cases where tax effect is not relevant, such as, where addition is based on information received from various other law enforcement agencies such as Central Bureau of Investigation India MA No.64/Ahd/2022 3 / Enforcement Directorate / Department of Revenue Intelligence / Serious Fraud Investigation Office / Directorate General of GST Intelligence (DGGI). Admittedly, in the instant case, the addition was made by the AO in the assessment framed based on the information received from DGCEI, Ahmedabad. It is pertinent to note here that this exception is effective from 20 August 2018, and thus, it is permissible for the Tax Department to appeal before the Tribunal even if the tax effect is within the revised monetary threshold. In this scenario, we find merit in the MA of the Revenue because the case of the Revenue falls in the case covered under para-10. Therefore, we recall the impugned order, and restore the appeal of the Revenue to its original number for deciding the appeal on merit. Registry is directed to list the appeal for hearing in regular course. 4. In the result, Misc. Application of the Revenue is allowed. Order pronounced in the Court on 26 th July, 2023 at Ahmedabad. Sd/- Sd/- (MADHUMITA ROY) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad,dated 26/07/2023
