DCIT-1(1), Bhopal V. SHRI Prakash Bhojwani, Bhopal

MA 9/Ind/2020

AI Insights

The case involves the Income Tax Department (Revenue) seeking to recall a Tribunal order that dismissed their appeal due to low tax effect, as per CBDT Circular no.3/2018. The appeal pertained to a reassessment order under section 147 of the Income Tax Act, following an audit objection that was accepted by the department. The Tribunal found that the case fell within the exceptions of the CBDT Circular, leading to the recall of the dismissal order and restoration of the appeal for a decision on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127206 (ITAT-INDORE)
• Duration Of Justice: 3 year(s) 4 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-07-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 06-07-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 19-02-2020
• Laws Referred To: CBDT Circular no.3/2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect

Judgement Text

आयकर अपील य अ धकरण, इंदौर यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER MA No.09/Ind/2020 (Arising out of I.T.A. No.172/Ind/2019) Assessment Year : 2010-11 DCIT 1(1) Bhopal बनाम/ Vs. Shri Prakash Bhojwani H.No.37, Parika Phase-I, Walmi Road, Chuna Bhatti, Bhopal PAN No. : ABVPB 8825 E (Appellant) .. Respondent) Revenue by : Shri Ashish Porwal Sr. D.R Respondent by : Shri Ashish Goyal & N.D. Patwa, ARs Date of Hearing 07.07.2023 Date of Pronouncement 07.07.2023 ORDER Per Vijay Pal Rao, JM: By way of this Misc. Application the revenue is seeking recalling of the order dated 21.08.2019 whereby the appeal of the revenue along with other appeals were dismissed by the Tribunal due to low tax effect as provided in CBDT Circular no.3/2018 dated 8 th August 2019. MA No.09/Ind/2020 Prakash Bhojwani 2 - 2. Ld. AR of the assessee has submitted that the present case in ITANo.172/2019 falls in the exception provided in the CBDT Circular 03/2018 in para 10(c) as there was audit objection in this case which was accepted by the department and consequently reassessment was done in the case of the assesse. Ld. DR has filed report of the AO along with letter dated 13.01.2015 addressed to the CIT-1, Bhopal regarding the acceptance of the audit objection and remedial action propose u/s 147 of the Act. Thus, ld. DR has submitted that since this case falls in the exception provided in the CBDT, Circular therefore the appeal of the revenue ought to have been decided on merits instead of dismissing on the ground of low tax effect. 3. On the other hand Ld. AR has not disputed the fact that as per the record filed by the Ld. DR there was an audit objection which was accepted by the department. 4. Having considered the rival submission as well as relevant material on record we find that the departmental appeal in ITANo.172/Ind/2019 was arising from reassessment order passed u/s 147 of the Act in pursuant to the audit objection which was duly accepted by the department as per letter dated 13.01.2015 and hence this case falls in the exceptions provided in CBDT Circular no.3/2018. Accordingly the impugned order of the Tribunal dated 21.08.2019 in respect of ITANo.172/Ind/2019 is recalled and the appeal of the revenue is restored to its original no and stage for fresh hearing and adjudication on merits. The registry is directed to fix the appeal of the MA No.09/Ind/2020 Prakash Bhojwani 3 - revenue for fresh hearing and adjudication on 09.08.2023. Since the date of hearing of the appeal is pronounced in open court and has been noted by both the parties therefore, no separate notice issue in this respect. 5. In the result, Misc. appeal filed by the Revenue is allowed. Sd/- Sd/- ( B.M . BIYAN I) (VIJAY PAL RAO) ACCOUN TANT MEM BER JUDICIAL MEMBER Indore. Dated 07/07 /2023 Patel. Sr. PS आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. राज व / Revenue 2. आवेदक / Assessee 3. संबं धत आयकर आय ु "त / Concerned CIT 4. आयकर आय ु "त- अपील / CIT (A) 5. &वभागीय )*त*न ध, आयकर अपील य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड1 फाइल / Guard file. By order/आदेश से, S r . P r i v a t e S e c r e t a r y I . T . A . T . , I n d o r e Order in pronounced in Open Court on conclusion of hearing on 07/ 07/2023