The ACIT, Circle-1(1)(1), Vadodara V. M/s. Jyoti Ltd., Vadodara

MA 81/AHD/2022

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3069 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-04-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 04-04-2024
• Assessment Year: 2006-2007
• Appeal Filed On: 06-10-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect
• Section: 154; 254(2)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘D’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE MRS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER MA No. 81/Ahd/2022 (Arising out of ITA No. 2097/Ahd/2016) Assessment Year : 2006-07 The Dy. Commissioner of Income-tax, Circle-1(1)(1), Vadodara Vs. M/s. Jyoti Limited, Nanubhai Amin Marg, Industrial Area, PO Chemical Industries, Vadodara-390003 PAN : AAACJ 4909 N (Applicant) (Applicant)(Applicant) (Applicant) (Respondent) (Respondent)(Respondent) (Respondent) Assessee by : Shri Manish J. Shah & Shri Rushin Patel, ARs Revenue by : Ms. Saumya Pandey Jain, Sr DR सुनवाई क琉 तारीख/Date of Hear ing : 0 5.0 4.2 024 घोषणा क琉 तारीख /Da te of Prono un cem e nt: 1 0.0 4.2 024 आदेश आदेशआदेश आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: Vide this impugned application, the Department seeks to revive its appeal in ITA No. 2097/Ahd/2016, which was dismissed by the ITAT vide order dated 09.05.2022 on account of tax effect involved therein being below the limit prescribed by the CBDT vide its Circular No.17 of 2019 dated 08.08.2019 for filing appeals before the ITAT. 2. The contention of the Department for seeking revival of the appeal is that it falls in the exception clause of the impugned Board Circular being Revenue Audit Objection accepted on the issue. The contents of the application filed by the Revenue are as under:- 2 MA No. 81/Ahd/2022 The ACIT Vs. Jyoti Ltd AY : 2006-07 “PETITION U/S. 254(2) OF THE INCOME TAX ACT 1961 IN THE CASE OF M/s. JYOTI LIMITED AY 2006-07 AND APPEAL WAS FILED BY THE REVENUE UNDER APPEAL IN ITA NO. 2097/Ahd/2016 Dated 09.05.2022 BEFORE THE HON'BLE TRIBUNAL AGAINST THE ORDER OF CIT(A). "On the facts and in the circumstances of the case and in law, the Hon'ble ITAT has erred in dismissing the revenue's appeal filed against the Ld CIT(A)'s order dated 31.05.2016 for AY 2006-07, as not maintainable in view of the CBDT Circular No. 17 of 2019 dated 08.08.2019 being tax effect below the monetary limit prescribed therein, without appreciating that the case falls in exception clause 10(c) of the Board's Circular being revenue audit objection accepted on the issue (proof of accepting audit objection enclosed)" The appeal to Hon'ble ITAT by way of Misc. Application is being filed on account of the fact that the tax effect in this case in inadvertently written at Rs. 52,44,884/- instead of Rs. 39,43,524/-. Hence, the revise miscellaneous application is being filed on account of the facts that the tax effect in this case is of Rs. 39,43,524/-. Further, the tax effect is below the prescribed limit for filing an appeal however, the case falls in exception clause 10(c) of Board's Circular vide no. 03/2018 dated 11.07.2018 being revenue audit objection accepted by the Revenue. Relief claimed in Revise M.Α It is therefore prayed that the Hon'ble ITAT, "D" Bench, Ahmedabad may recall its order dated 09.05.2022 in ITA No. 2097/Ahd/2016, wherein the Hon'ble ITAT, "D" Bench, Ahmedabad dismissed the appeal of the Department relying on the issue other than that disputed as above. It is also prayed that the Hon'ble ITAT, Ahmedabad may kindly decide the grounds of appeal raised by the department on merits of the case.” 3. The specific exception clause of the CBDT Circular No. 17 of 2019 dated 08.08.2019 referred to by the Department in the present application for the non-applicability of the impugned circular for withdrawal/non-filing of appeals where the tax effect involved was below the prescribed limit, reads as under: “10. Adverse judgments 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: 3 MA No. 81/Ahd/2022 The ACIT Vs. Jyoti Ltd AY : 2006-07 (a) ... (b) .... (c) Where Revenue Audit objection in the case has been accepted by the Department, or” 4. During the course of hearing before us, the Revenue was unable to produce any evidence of the acceptance of the Revenue Audit Objection by the Department as required by clause 10(c) above. What was filed before us as proof of accepting objection was a letter addressed by the CBDT to the Director General (CRA Coord & DT), Office of the C&AG of India, stating that their audit objection has been accepted by the Ministry and that remedial action has been completed u/s 154 of the Act. The contents of the letter are reproduced hereunder:- “F.No.236/3186/CT/2015-A&PAC-I Government of India, Ministry of Finance Department of Revenue Central Board of Direct Taxes Room No.278, 2nd Floor, Hotel Samrat, Kautilya Marg, Chanakya Puri, New Delhi-110021 Dated: 23 February, 2016 To The Dir-Gen (CRA Coord & DT) Office of the C&AG of India, New Delhi. Subject:- C&AG's Report: 2014-15, D.P.No.186-СТ, M/s. Jyoti Ltd., Assessment Year-2006-07, Tax Effect: Rs.52,44,884/- Sir, I am directed to refer to your D.O. letter No. 1018/REC/DT/48- 2015/coordn/160256/2015 dated 31.07.2015 on the above mentioned subject. 2. The audit objection has been accepted by the Ministry. The remedial action has been completed u/s 154 of the I.T. Act, 1961 on 05.08.2014. 3. In view of the above, the audit objection may please be treated as 'settled' and Vetting comments expedited. 4 MA No. 81/Ahd/2022 The ACIT Vs. Jyoti Ltd AY : 2006-07 Yours faithfully, sd- (Radhey Shyam Jaiswal) ACIT (OSD) Tele No. 011-26882638” 5. The ld. Counsel for the assessee stated before us that the acceptance of the audit objection is not to be by the Ministry, but by the Department, for the purpose of falling in the exception clause 10(c), and therefore, this is not sufficient for the purpose of revival of the appeal of the Revenue by invoking the said clause 10(c) of the CBDT Circular. 6. The ld. DR thereafter filed a report of the Assessing Officer dated 15.09.2023 in respect of the proof of the acceptance of the Revenue Audit Objection by the CIT stating therein that the copy of the acceptance letter from the CIT was not found till date. However, the Assessing Officer also stated that the office note of the rectification order passed u/s 154 of the Act in pursuance to the audit objection, mentions that audit objection raised had resulted in initiation of remedial action u/s 154 of the Act with the approval of the ld. CIT-1, Baroda. The ld. DR, therefore, stated that though the acceptance letter from the CIT of the audit objection was not available on record, however the fact of his having accorded acceptance to the audit objection was noted in the order passed u/s 154 of the Act. She, therefore, stated that, in view of the same, the appeal needed to be heard on merits and not disposed of on account of low tax effect involved. 7. Having heard the contentions of both the parties, we note the fact that the Revenue has been unable to furnish before us the acceptance letter of the CIT to the Revenue Audit Objection which is necessary for the appeal of the Revenue to fall in the exception clause 10(c) of the CBDT Circular No. 17 of 5 MA No. 81/Ahd/2022 The ACIT Vs. Jyoti Ltd AY : 2006-07 2019 dated 08.08.2019, so as to be not to be treated as withdrawn on account of low tax effect involved but be argued on merits. 8. In view of the fact, as noted above by us, there is no case for restoring the appeal of the Revenue dismissed by the ITAT on account of low tax effect involved in the present case and the Miscellaneous Application filed by the Revenue is, therefore, dismissed. 9. In the result, the Miscellaneous Application filed by the Revenue is dismissed. Order pronounced in the open Court on 10/04/2024 at Ahmedabad. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 10/04/2024 bt* आदेश की े /Copy of the Order forwarded to : 1. / The Appellant 2. / The Respondent. 3. संबंिधत आयकर आय / Concerned CIT 4. आयकर आय ( ) / The CIT(A) 5. िवभ ग य िति िध, आयकर य िधकरण / DR, ITAT, 6. ग फ ई / Guard file. आदेशानुसार/BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad