Asst. Commissioner of Income Tax, Cent. Circle-3(2)., Hyderabad V. GVK Gautami Power Limited., Hyderabad.

MA 79/Hyd/2021

• Counselvise Citation: [NaN] 107 COUNSELVISE.COM (IT) 1756 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-06-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2010-2011
• Appeal Filed On: 02-11-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER M.A. No.79/HYD/2021 (Arising out of ITA No.1244/Hyd/2017) Assessment Year: 2010-11 Asst.Commissioner of Income Tax, Central Circle-3(2), Hyderabad Vs M/s.GVK Gautami Power Limited, Hyderabad [PAN: AAACG7612D] (Applicant) (Respondent) Assessee by: Shri Manish Agarwal, AR Revenue by: Shri Rohit Mujumdar, DR Date of hearing: 03-06-2022 Pronouncement on: 03-06-2022 ORDER PER K. NARASIMHA CHARY, JM: Revenue filed this Miscellaneous Application, seeking recall of the order dt.28-05-2021 dismissing the appeal holding that the tax effect involved in this matter is below the threshold described under CBDT Circular No.3 of 2018, dt.11-07-2018, on the ground that the appeal emanated out of the Revenue audit objections and, therefore, the case is M.A. No.79/Hyd/2021 Page 2 of 4 covered by the exceptions specified in the CBDT Circular No.3 of 2018, dt.11-07-2018 and 17 of 2019, dt.08-08-2019 2. Learned AR submitted that the impugned order in the appeal in ITA No.1244/Hyd/2017 is passed u/s.143(3) r.w.s.263 of the Income tax Act, 1961 (“the Act”) and, therefore, the audit objection, if any, should have been in respect of the order passed u/s.263 of the Act and it cannot be against the assessment order passed consequent to the revision. 3. We have gone through the record in the light of the submissions made on either side. It is a fact that the impugned assessment order dt.29- 02-2016 was passed u/s.143(3) r.w.s.263 of the Act. Insofar as the contention of the Revenue that this particular appeal had emanated out of the Revenue audit objection accepted by the Revenue, clause 10(c) of the Circulars dt.11-07-2018 and 08-08-2019 passed by the CBDT : 10. Adverse judgements relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: a) xxx b) xxx c) Where Revenue Audit objection in the case has been accepted by the Department, or d) xxx 4. It is clear that the appeal emanated out of the Revenue audit objection and accepted by the should be decided on merits notwithstanding that the tax effect it entailed is less than the monetary limits specified in the circular. We are not in agreement with the submissions made on behalf of the assessee that the Revenue audit objection, if any, should have been directed against the order passed M.A. No.79/Hyd/2021 Page 3 of 4 u/s.263 of the Act, but not against the order passed u/s. 143(3) of the Act in as much as the order passed u/s. 143(3) of the Act is nothing but the cascading effect of the revisionary proceedings. With this view of the matter, we uphold the contention of Revenue, restore the appeal to file and post the appeal for hearing on 07-07-2022. Both the counsels noted next date of hearing in the open court, hence no need to issue any separate notice. Registry is directed to fix the appeal for hearing on 07-07-2022. 5. In the result, the MA is allowed. Order pronounced in the open court on this the 3 rd day of June, 2022 Sd/- Sd/- (RAMA KANTA PANDA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER TNMM Hyderabad, Dated: 03-06-2022 M.A. No.79/Hyd/2021 Page 4 of 4 Copy forwarded to: 1. Asst.Commissioner of Income Tax, Central Circle-3(2), Hyderabad. 2. M/s.GVK Gautami Power Limited, 156-159, Paigah House, S.P.Road, Hyderabad. 3. The CIT(Appeals)-11, Hyderabad. 4. The Pr.CIT(Central)-Hyderabad. 5. DR, ITAT, Hyderabad 6. GUARD FILE TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD