The Jt.CIT, Circle-1(1)(2), Baroda V. Shri Rakesh S. Agrawal, Baroda

MA 94/AHD/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7870 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-09-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 28-02-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G C DAXINI
• Assessee Lawyers: MILIN MEHTA AR
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD [CONDUCTED THROUGH VIRTUAL COURT] BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER MISC. APPLICATION NO.94/AHD/2020 IN IT(SS)A NO.92/AHD/2018 : ASSTT.YEAR 2013-14 JCIT (OSD) CIR.1(1)(2) BARODA. VS. SHRI RAKESH A. AGARWAL BAYER ABS LTD 8 TH FLOOR, ABS TOWER OP ROAD, VADODARA. / APPLICANTS BY : SHRI G.C. DAXINI, SR.DR / RESPONDENTS BY : SHRI MILIN MEHTA, AR ! '#$ %&' / DATE OF HEARING 03/09/2021 ()*+ %&' / DATE OF PRONOUNCEMENT 03/09/2021 -. / O R D E R PER RAJPAL YADAV, VICE PRESIDENT: PRESENT MISCELLANEOUS APPLICATION IS DIRECTED AT TH E INSTANCE OF THE REVENUE POINTING OUT AN APPARENT ERROR IN A COMBINE D ORDER OF THE TRIBUNAL DATED 14.8.2019 PASSED IN ITA NO.1398/AHD/2004 AND 627 OTHERS AND CO. GRIEVANCE OF THE REVENUE IS LIMITED TO IT(SS)A.NO.9 2/AHD/2018 ONLY. 2. BEFORE ADJUDICATING THE ISSUE RAISED BY THE REVE NUE IN THE MA, IT IS TO BE NOTED THAT CONSEQUENT UPON CBDT CIRCULAR DATED 8 .8.2019, VIDE WHICH, THE DEPARTMENT WAS PROHIBITED TO FILE APPEAL BEFORE THE TRIBUNAL WHERE TAX EFFECT ON DISPUTED ADDITIONS IS RS.50.00 LAKHS OR LESS. T HIS CIRCULAR WAS ALSO MA NO. 92 /AHD/20 18 - 2 - APPLICABLE TO THE PENDING APPEALS. THEREFORE, ITA T IN A SPECIAL DRIVE DISPOSED OF A LARGE NUMBER OF APPEALS OF THE REVENU E AS BEING HIT BY THE REVISED MONETARY THRESHOLD LIMIT STIPULATED BY THE CBDT. IN ONE OF THE LOTS CONTAINING 628 APPEALS, THE APPEAL OF THE PRESENT A SSESSEE ALSO INCLUDED, AND DISMISSED IN LIMINE DUE TO LOW TAX EFFECT. WHILE DISMISSING THE APPEA LS OF THE REVENUE LIBERTY WAS GIVEN TO THE DEPARTMENT TO RECA LL THE ORDER AND RESTORATION OF THE APPEALS IN CASES WHERE APPEALS W ERE WRONGLY INCLUDED OR FALL WITHIN THE EXCEPTION CLAUSES PROVIDED IN 10 OF THE CBDT CIRCULAR. 3. BY WAY OF PRESENT MA, THE REVENUE POINTED OUT TH AT THE CASE IN THE MATTER OF SHRI RAKESH A. AGARWAL FALLS WITHIN THE E XCEPTION CLAUSE 10(D) OF THE CBDT CIRCULAR NO.03/2018 DATED 11.07.2018, AND THEREFORE, BEING AN APPARENT ERROR, ORDER OF THE TRIBUNAL DATED 14.8.20 19 PASSED IN ITA NO.1398/AHD/2004 AND 627 OTHERS AND CO QUA THE PRESENT ASSESSEE BE RECALLED, AND APPEAL OF THE REVENUE BE RESTORED FOR HEARING ON MERIT. ON THE OTHER HAND, THE LD.AR OF THE ASSESSEE DID NOT DISPU TE FACTUAL ASPECTS OF THE ISSUE. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND GONE TH ROUGH THE IMPUGNED ORDER OF THE TRIBUNAL AND ALSO CBDT CIRCULARS ISSUE D FROM TIME TO TIME IN THIS BEHALF. FACTUAL ASPECT IS NOT DISPUTE. THE APPEAL OF THE REVENUE WAS DISMISSED ON ACCOUNT OF REVISED MONETARY THRESHOLD LIMIT PRESCRIBED BY THE CBDT IN THE CIRCULAR CITED (SUPRA). WHILE DISMISSIN G THE APPEAL, LIBERTY WAS ALSO GIVEN TO THE DEPARTMENT TO FILE MA TO RECALL T HE ORDER, IN CASE, LATER ON IT FOUND THAT CASE OF THE DEPARTMENT FALLS WITHIN THE EXCEPTION PROVIDED IN THE CBDT CIRCULAR. IN THE PRESENT MA, THE REVENUE HAS POINTED OUT THAT APPEAL OF THE REVENUE FALLS WITHIN THE EXCEPTION PROVIDED IN PARA-10(D) OF CIRCULAR 03/2018. PARA-10(D) PROVIDE THAT THE TAX EFFECT IS NOT RELEVANT IN CASES WHERE THE ADDITION RELATES TO UNDISCLOSED FOREIGN A SSETS/ BANK ACCOUNTS. IN THIS SCENARIO, WE FIND MERIT IN THE MA OF THE REVEN UE BECAUSE THE CASE OF THE MA NO. 92 /AHD/20 18 - 3 - REVENUE FALLS IN THE CASES COVERED UNDER THE PARA-1 0. THEREFORE, WE RECALL THE IMPUGNED ORDER, AND RESTORE APPEAL OF THE REVEN UE TO ITS ORIGINAL NUMBER FOR DECIDING THE APPEAL ON MERIT. REGISTRY IS DIR ECTED TO LIST THE APPEAL FOR HEARING ON 10 TH SEPTEMBER, 2021 BEFORE B BENCH AS OTHER GROUP AP PEALS ARE FIXED ON THAT DATE. 5. IN THE RESULT, THE MISC. APPLICATION OF THE REVE NUE IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 03 / 09/2021 SD/- SD/- (WASEEM AHMED ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER VICE PRESIDENT