ACIT, New Delhi V. Charu Shekhar Gupta, New Delhi

MA 744/DEL/2018

AI Insights

The case involves the Revenue's application under section 254(2) of the Income-tax Act, 1961, seeking to recall the Tribunal's order dated 23.08.2018, which had dismissed the Revenue's appeal on the grounds of low tax effect as per CBDT Circular No. 03 of 2018. The appeal was initially dismissed because the tax effect was below the prescribed monetary limit. However, the Revenue argued that the case involved undisclosed income related to an HSBC account, which should be contested on merits regardless of the tax effect. The Tribunal agreed with the Revenue's position, citing the exceptions in the CBDT Circular, and thus recalled the earlier order and restored the appeal for a decision on its merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 112942 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-03-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 03-12-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 143(3); 254(2)

Judgement Text

1 MA No. 744/Del/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” FRIDAY: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER M.A. No. 744/Del/2018 [ In ITA No.1157/DEL/2017 [Assessment Year: 2012-13 DCIT, Central Circle-3, New Delhi. Vs Charu Shekhar Gupta, 203, Ashadeep Apartment, 9, Haily Road, New Delhi. PAN: AAAPG6913C APPLICANT RESPONDENT Assessee represented by Shri M.M.S. Attri, Adv. Department represented by Shri Om Parkash, Sr. DR Date of hearing 10.03.2023 Date of pronouncement 16.03.2023 O R D E R PER KUL BHARAT, JM: By this misc. application u/s 254(2) of the income-tax Act, 1961, the Revenue seeks to recall the Tribunal’s order dated 23.08.2018 passed in ITA no. 1157/Del/2017 for A.Y. 2012-13, dismissing the Revenue’s appeal on account of low tax effect, pursuant to CBDT Circular no. 03 of 2018 dated 11 th July, 2018. 2. Learned DR reiterated the submissions made in the misc. application and submitted that para 10 of CBDT Circular No. 03/2018 dated 11 th July, 2018 specifies that the adverse judgment should be contested on merits notwithstanding 2 MA No. 744/Del/2018 that the tax effect is less than the monetary limit specified in para 3 of CBDT Circular 03/2018 or there is no tax effect in cases where the addition is related to undisclosed foreign asset/bank accounts. In the instant case assessment order u/s 153A read with section 143(3) of the Income-tax Act, 1961, hereinafter referred to as the “Act”, was passed by the Assessing Officer. During the course of assessment proceedings the Assessing Officer made addition on account of undisclosed income/ interest in undisclosed HSBC account amounting to Rs.3,77,648/-. Consequently, the Assessing Officer imposed penalty of Rs.1,16,693/- u/s 271(1)(c) of the Act vide order dated 28.09.2015. Learned DR prayed that the issue involved in the revenue’s appeal is covered under the exceptions provided in para 10 of the CBDT Circular, to be decided on merits. 3. On the other hand, learned AR of the assessee relied on Tribunal’s order, dismissing the Revenue’s appeal on account of low tax effect. 4. We have heard both the parties and perused the relevant material available on record. In our considered view the issue involved in the Revenue’s appeal is covered under the exceptions provided in para 10 of CBDT Circular no. 3/2018 dated 11 th July, 2018, therefore the appeal is to be decided on merits. Accordingly, we recall our order dated 23.08.2018 rendered in ITA no. 1157/Del/2017 for A.Y. 2012-13 and the appeal is restored to its original number. The Registry is directed 3 MA No. 744/Del/2018 to fix ITA no. 1157/Del/2017 for hearing in due course after issuing notices of hearing to the parties. 5. In the result, misc. application is allowed. Order pronounced in open court on 16 th March, 2023. Sd/- Sd/- (DR. B.R.R. KUMAR ) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Draft dictated 15.03.2023 Draft placed before author 15.03.2023 Approved Draft comes to the Sr. PS/PS Order signed and pronounced on File comes to P.S. File sent to the Bench Clerk Date on which file goes to the AR Date on which file goes to the Head Clerk Date of dispatch of Order Date of uploading on the website