Asst.Commissioner Of Income Tax, Chandigarh V. M/s Chetan Gupta & Sons, Chandigarh

MA 94/CHANDI/2017

AI Insights

The case revolves around a Departmental Application in ITA No. 1454/Chd/2016, which was initially dismissed due to the low tax effect as per CBDT Circular No. 21/2015. The Department sought to contest the dismissal on merits, citing an audit objection that was not presented during the original hearing. The Assessee's counsel argued that the Tribunal's earlier decision was correct as the Department had not raised any arguments or provided evidence on the merits at that time. The Tribunal agreed with the Assessee, stating that the Department's failure to argue on merits during the original hearing precluded them from doing so in the review application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128355 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 year(s) 1 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-10-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 21-09-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 05-09-2017
• Other Referred Cases: M/s Mount Shivalik Breweries Ltd, Derabassi
• Laws Referred To: CBDT Circular No. 21/2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Audit objection; Tax effect; Tax effect

Judgement Text

आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER M.A.No. 94/Chd/2017 (Arising out of आयकर अपील सं./ITA No. 1454/CHD/2017 Ǔनधा[रण वष[ / Assessment Year : 2006-07 The ACIT, Circle 3(1), Chandigarh बनाम M/s Chetan Gupta & Sons, C/o Kiran Cinema, Sector 22, Chandigarh èथायीलेखासं./PAN NO: AACFC2091D अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरतीकȧओरसे/Assessee by : Shri Tej Mohan Singh, Advocate for Shri Ashwani Kumar, CA राजèवकȧओरसे/ Revenue by : Smt. Amanpreet Kaur, Sr. DR स ु नवाईकȧतारȣख/Date of Hearing : 22.09.2023 उदघोषणाकȧतारȣख/Date of Pronouncement : 27.09.2023 आदेश/Order Per Vikram Singh Yadav, AM: This is Departmental Application in ITA No. 1454/Chd/2016, which was dismissed for tax effect vide order dated 31.05.2017. 2. The Department contends that the Tribunal, without going into the merits of the case, has dismissed the appeal of the Department due to low tax effect as per CBDT Circular No. 21/2015 dated 10.12.2015. Now, it has been submitted by the ld. Departmental Representative (DR) that, in this case, an audit objection was raised by the Revenue Audit Party vide para No. MA. No. 87/Chd/2019 in ITA 945/Chd/2018 - M/s Mount Shivalik Breweries Ltd, Derabassi. 2 6 LAR No. 104-105A dated 10.10.2012. It is conceded by the ld. DR that the aforesaid fact could not be brought to the notice of the Bench during the course of hearing and, as such, the Tribunal dismissed the appeal due to tax effect but this fact has now been noticed and that this being so, irrespective of the low tax effect, the matter needs to be contested on merits. 3. The ld. Counsel for the Assessee, on the other hand, has placed strong reliance on the order of the Tribunal dated 31.05.2017 (supra). It has been contended that the facts pointed out in the Application of the Revenue had not been brought to the notice of the Bench at the time of hearing of the appeal and, therefore, no arguments took place on this aspect and the appeal of the Revenue was rightly dismissed by the Tribunal. There is no apparent mistake on the record and, moreover, the Revenue has not brought any evidence on record to support its claim, nor had argued the stand which has now been taken by the Revenue at this juncture, therefore, the application of the Revenue is liable to be rejected. 4. We have heard the parties and have perused the material on record. 4.1 We find that the Revenue authorities, during the course of hearing of the appeal, neither had argued the issue on merits, nor the Revenue had submitted any documentary evidence in support of its claim which has now been claimed before the Tribunal through this Application. We find force in the submission raised by the ld. Counsel for the Assessee that the Revenue authorities had failed to put forth any argument on the merits of the case MA. No. 87/Chd/2019 in ITA 945/Chd/2018 - M/s Mount Shivalik Breweries Ltd, Derabassi. 3 during the course of hearing. Had the Revenue pointed out any particular fact or raised the issue on merits, the issue would have been dealt with accordingly. Furthermore, we find that the Revenue, through this Application, seeks a review of the order of the Tribunal which, as per law, is not permissible. 5. Therefore, in the absence of any argument on merits of the case, and considering the totality of facts and circumstances, we find that there is no force in the application filed by the Department and the same is liable to be rejected. It is ordered so, accordingly. 6. In the result, the Application filed by the Department is dismissed. Order pronounced in the Open Court on 27.09.2023 Sd/- Sd/- ( A.D. JAIN ) (VIKRAM SINGH YADAV) Vice President Accountant Member Dated : 27.09.2023 “आर.के.” आदेशकȧĤǓतͧलͪपअĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकरआय ु Èत/ CIT 4. ͪवभागीयĤǓतǓनͬध, आयकरअपीलȣयआͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar MA. No. 87/Chd/2019 in ITA 945/Chd/2018 - M/s Mount Shivalik Breweries Ltd, Derabassi. 4 1. Draft dictated 25.09.2023 Sr.PS 2. Draft first placed before author 27.09.2023 3. Approved draft comes to Sr.PS/PS 27.09.2023 4 Final draft placed before author 27.09.2023 5. Order signed and pronounced on 27.09.2023 6 File sent to the Bench Clerk 27.09.2023 Sr.PS 7. Date on which file goes to the AR 8. Date on which file goes to the Head Clerk. 9. Date of dispatch of Order