ACIT Special Range-1, New Delhi V. Agricultural Insurance Company Of India Ltd., New Delhi

MA 851/DEL/2019

AI Insights

The case involves the Agricultural Insurance Company of India Ltd., which contested an assessment order that increased its taxable income significantly. The Revenue's appeal to the ITAT was initially dismissed due to the tax effect being below the prescribed threshold of Rs. 50,00,000 as per CBDT Circular No.17/2019. However, the Revenue filed a Miscellaneous Application arguing that the tax effect was indeed above the threshold, leading to the recall of the ITAT's earlier order and the restoration of the appeal for a substantive hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130831 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-12-2022
• Assessment Year: 2015-2016
• Appeal Filed On: 26-11-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 14A

Judgement Text

Page 1 of 6 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE, SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER MA No.851/Del/2019 (Arising out of ITA No.891/Del/2019) ASSESSMENT YEAR 2015-16 ACIT,Circle-1(2) New Delhi Vs. M/s Agriculture Insurance Company of India 20 th Floor, Ambadeep Building 14 th KG Marg New Delhi-110 001 PAN-AAECA 2874P (Appellant) (Respondent) Appellant by Mr. B.S. Anand, Senior Departmental Representative Respondent by Ms. Komal Kashik, CA ORDER PER ANADEE NATH MISSHRA, AM: (A) This Miscellaneous Application (‘MA’, for short) is filed by Revenue in respect of order dated 28/08/2019 passed by Income Tax Appellate Tribunal (‘ITAT’, for short) in Revenue’s appeal vide ITA No.891/Del/2019. In the present MA, Revenue has requested MA.851/Del/2019 ACIT vs. Agricultural Insurance Company of India Ltd. Page 2 of 6 for recall of aforesaid order dated 28/08/2019 of ITAT; and for hearing of the assessee’s appeal on merits. (B) In this case, assessment order dated 26/10/2017 was passed u/s 143(3) of Income Tax Act; wherein the assessee’s total income was determined at Rs.2,24,27,60,620/- as against the returned income of Rs.2,16,92,38,050/-. The assessee filed appeal before the Ld. CIT(A). Vide her appellate order dated 22/11/2019, the Ld. CIT(A) allowed the assessee’s appeal and deleted separate additions amounting to Rs.5,92,57,310/- and Rs.1,42,65,260/-. Revenue filed appeal against the aforesaid appellate order dated 22/11/2018 of the Ld. CIT(A), in Income Tax Appellate Tribunal (“ITAT”, for short), vide ITA No. 891/Del/2019. In the aforesaid appeal filed by the Revenue in ITAT, the following grounds of appeal were filed, and the total tax effect as per Form No.36 filed by the Revenue was Rs.2,49,24,151/-: “1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting addition of Rs.5,92,57,310/- made by the AO on account of income earned on investment of Corpus Fund. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting addition of Rs.1,42,65,260/- made by the AO on account of disallowance u/s 14A r.w.r.8D of Income Tax Rules. MA.851/Del/2019 ACIT vs. Agricultural Insurance Company of India Ltd. Page 3 of 6 3. The appellant craves leave, modify, add or forgo any ground(s) of appeal at any time before or during the hearing of this appeal.” (C) Vide consolidated order dated 28/08/2019, a number of appeals filed by Revenue were dismissed on the ground that the tax effect in each of these appeals was below the minimum prescribed threshold limit of Rs.50,00,000/- prescribed vide CBDT Circular No.17/2019 dated 08/08/2019 read with clarification dated 20/08/2019 issued by CBDT in F. No. 279/Misc./M-93/2018-ITJ. The aforesaid appeal vide ITA No.891/Del/2019 filed by Revenue in the case of the assessee, Agricultural Insurance Company of India Ltd., was also dismissed vide the aforesaid consolidated order dated 28/08/2019 on the same ground vide the aforesaid consolidated order dated 28/08/2019 of Co-ordinate Bench of ITAT, Delhi. However, in the aforesaid order dated 28/08/2019 of the Co-ordinate Bench of ITAT, Delhi; it was clarified that Revenue would be at liberty to approach ITAT for recall of the order and for restoration of the appeal if it was found that the appeal of Revenue was not covered by aforesaid CBDT Circular dated 08/08/2019. The present MA before us has been filed by Revenue seeking recall of the aforesaid order dated 28/08/2019 of Co-ordinate Bench of MA.851/Del/2019 ACIT vs. Agricultural Insurance Company of India Ltd. Page 4 of 6 ITAT, Delhi and also seeking decision of the appeal on merits. The relevant portion of the Miscellaneous Application filed by Revenue is reproduced as under: “The return of the income declaring an income of Rs.2,16,92,38,050/- was filed by the assessee on 30.11.2015. The assessment was completed u/s 143(3) of the Act at income of Rs.2,24,27,60,620/- on 26.10.2017 by making additions on the following accounts: 1. Disallowance of Corpus Fund Rs.5,92,57,310/- 2. Disallowance u/s 14A Rs.1,42,65,260/- 1. The said order of AO was challenged before Ld. CIT(A) against the above said additions and Ld. CIT(A) allowed the assessee company. Aggrieved by the order of Ld. CIT(A), the revenue has filed an appeal before Hon’ble ITAT vide ITA No. 891/Del/2019. Grounds on which Misc. Application is submitted before the Hon’ble ITAT 2. Hon’ble ITAT vide order ITA No. 891/Del/2019 dated 28.08.2019 has dismissed the appeal of revenue with following observations:- “The tax effect in the Departmental Appeal is less that Rs. 50 lakhs vide Circular No. 17 of 2019 dated 08/0/2019 issued by CBDT it has been directed that Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs. 50 lakhs.” Prayer 3. In the facts and circumstances of the case, it is most respectfully prayed that – (i) The order passed by Hon’ble ITAT may kindly be recalled as the tax effect involved in this case is Rs.2,49,24,151/-, which is above the monetary limit as prescribed in Circular No.17/2019 dated 08/08/2019 of CBDT. (ii) The appeal filed by the department in the case may kindly be decided on merits. (iii) The Hon’ble Bench may pass such and other further order, as it may deem fit and appropriate, w.r.t. the facts and circumstances of the case and in the interest of justice.” (D) At the time of hearing before us, the Ld. Sr. DR for Revenue submitted that the tax effect in the aforesaid appeal of MA.851/Del/2019 ACIT vs. Agricultural Insurance Company of India Ltd. Page 5 of 6 Revenue in the case of the assessee vide ITAT No.891/Del/2019 was more than Rs.50,00,000/-. He further submitted that the appeal was not covered under the aforesaid CBDT Circular No. 17/2019 dated 08/08/2019 because the tax effect in this appeal was more than Rs.50,00,000/-. He submitted that the aforesaid order dated 28/08/2019 of Co-ordinate Bench of ITAT, Delhi should be recalled as far as the Revenue appeal in respect of this assessee vide ITA No. 891/Del/2019 is concerned. He also submitted that Revenue’s appeal in the case of the assessee vide ITA No.891/Del/2019 should be restored and decide on merits. The Ld. Authorized Representative (“Ld. AR”, for short) for assessee, Ms. Komal Kaushik, CA was in agreement with the submissions made by Sr. DR for Revenue and she did not oppose to the Miscellaneous Application filed by Revenue. (D.1) In view of the foregoing; and as representatives of both sides are in agreement with this, the aforesaid order dated 28/08/2019 is recalled to the limited extent of as far as it pertains to aforesaid appeal vide ITA No.891/Del/2019; and the appeal of Revenue in the case of this assessee vide ITA No.891/Del/2019 is MA.851/Del/2019 ACIT vs. Agricultural Insurance Company of India Ltd. Page 6 of 6 hereby restored for decision on merits by regular bench of ITAT, Delhi. The date of hearing of the appeal so restored is fixed in ITAT, Delhi on 18/04/2023. Representatives of both sides have noted the date of hearing which was announced at the time of hearing, and have waived notice of hearing. (E) In the result, this Miscellaneous Application filed by Revenue is allowed. Our order was already pronounced orally on 24/02/2023 in Open Court, in the presence of representatives of both sides, after conclusion of the hearing. Now this order in writing is signed today on 28/02/2023. Sd/- Sd/- (CHANDRA MOHAN GARG) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 28/02/2023 Pk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI