DCIT, Central Circle -1(4), Hyderabad V. MK Infra & Developers, Hyderabad

MA 75/Hyd/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9843 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-11-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 23-11-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 10-09-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

MA No 75 of 2023 MK Infra & Developers Page 1 of 3 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A ‘ Bench, Hyderabad Before Shri R.K. Panda, Vice-President AND Shri Laliet Kumar, Judicial Member M.A. No.75/Hyd/2023 (Arising out of ITA No.417/Hyd/2022) Assessment Year: 2019-20 Dy. CIT Central Circle 1(4) Hyderabad Vs. MK Infra & Developers Hyerabad PAN:ABDFM5500F (Appellant) (Respondent) Revenue by Shri Shakeer Ahmed, DR Assessee by : N o n e Date of hearing: 24/11/2023 Date of pronouncement: 29/11/2023 ORDER Per R.K. Panda, Vice-President The Revenue through this Miscellaneous Application requests the Tribunal to recall the order which was dismissed by the Tribunal on account of low tax effect. 2. The learned DR drew the attention of the bench to the contents of the M.A which reads as under: “1. The appellant has filed an appeal before the Hon'ble ITAT on 01.09.2022 against the order of the ld. CIT(Appeal)-11 Hyderabad dated 16.06.2022 in the case of the respondent for the A.Y. 2019-20. The same was numbered as ITA No. 417/Hyd/2022. 2. The Hon'ble ITAT in their order dated 28.03.2023 dismissed the revenue's appeal of the department on the ground that the tax effect involved in the ground raised by the Revenue is admittedly less than Rs.50 Lakhs and the MA No 75 of 2023 MK Infra & Developers Page 2 of 3 appeal filed by the Revenue is not maintainable. Further in the said order it is stated that in case the Revenue at any point of time finds that the tax effect is more than Rs.50 lakhs or that the same is covered by any of the exceptions mentioned in the said circular, the Revenue is at liberty to move appropriate application before the Tribunal for restoration of the appeal. 3. In this regard the relevant portion of the circular brought to the kind notice of Hon'ble ITAT that as per Circular No.3/2018[F.No.279/Misc.142/2007-ITJ(PT), dated 11.07.2018 'tax effect' means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed. Further, 'tax effect' shall be tax including applicable surcharge and cess. 4. According to the above circular, in the present case, the tax effect is involved is more than Rs.50 Lakhs and details of the tax effect worked out as per the above circular is as under: 5. In view of the above and since the tax effect involved is more than Rs.50 Lakhs, it is prayed before the Hon'ble ITAT to consider the admission of the Misc. Application for AY 2019-20.” 3. He submitted that the same is self-explanatory and the order of the Tribunal be recalled since the appeal filed by the Revenue was dismissed on account of low tax effect. 4. None appeared on behalf of the assessee despite notices were sent through RPAD. It was further observed that the appeal was also heard in absence of the assessee where the appeal of the Revenue was dismissed on account of low tax effect. Under the circumstances, we deem it proper to decide the M.A filed by the Revenue. MA No 75 of 2023 MK Infra & Developers Page 3 of 3 5. After going through the contents of the M.A, we find that the tax effect on the appeal filed by the Revenue is admittedly more than Rs.50 lakhs after considering the surcharge and education cess. We, therefore, recall the order of the Tribunal and the appeal is fixed for hearing on 19.1.2024. No separate notice of hearing is required and this order itself is deemed to be issue of notice to both sides. 6. In the result, the M.A filed by the Revenue is allowed. Order pronounced in the Open Court on 29 th November, 2023. Sd/- Sd/- (LALIET KUMAR) JUDICIAL MEMBER (R.K. PANDA) VICE-PRESIDENT Hyderabad, dated 29 th November, 2023. Vinodan/sps Copy to: S.No Addresses 1 Dy.CIT Central Circle 1(4) 7 th Floor, Aayakar Bhavan, Basheerbagh Hyderabad 5004 2 M/s.MK Infra & developers, 8-3-1114/1 Flat No.2 Lakshmi Krishna Nilayal, Kesava Nagar, Srinagar Colony, Hyderabad 500073 3 Pr. CIT – Central, Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order