THE DEPUTY COMMISSIONER OF INCOME-TAX, CHENNAI V. RAJESH BABASHANKAR, CHENNAI

MA 87/CHNY/2024

AI Insights

The case involves the Deputy Commissioner of Income Tax, Non Corporate Circle 10(1), Chennai, as the appellant, and Shri Rajesh Babashankar, the respondent. The revenue filed miscellaneous petitions to recall the Tribunal's order dated 29.05.2024, which had favored the assessee regarding the Foreign Tax Credit for the assessment years 2018-19, 2019-20, and 2022-23. The revenue argued that there was a factual error in the Tribunal's order, claiming that the appeals were dismissed by the Addl.CIT/JCIT (A) for delay in filing, and not adjudicated on merit. The Tribunal, referencing a decision by the Co-ordinate Bench and the Hon'ble High Court of Madras, found no merit in the revenue's argument and dismissed the petitions, emphasizing the importance of substantial justice over technical considerations.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 39306 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 25-10-2024
• Assessment Year: 2022-2023
• Appeal Filed On: 07-10-2024
• Other Referred Cases: ITO vs. Smt. Chengam Durga, Duraiswamy Kumaraswamy in WP No.5834 of 2022 & Ors., N. Balakrishnan Vs M. Krishnamurthy
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITA; IRS
• Assessee Lawyers: V. BALAJI

Judgement Text

" आयकर अपीलीय अिधकरण ‘बी’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM M.P.Nos.85,86 & 87/Chny/2024 (आयकरअपील सं./ ITA Nos.616, 617 & 618/Chny/2024) (िनधाŊरणवषŊ / Assessment Years: 2018-19, 2019-20 & 2022-2023) The Deputy Commissioner of Income Tax, Non Corporate Circle 10(1) Chennai. Vs. Shri. Rajesh Babashankar, C3, 3rd floor, Crescent Park Road, Gandhi Nagar, Besant Nagar, Chennai 600 020. [PAN: AAGPR 3145K] (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Ms. Anita, IRS, Addl. CIT Ĥ×यथȸ कȧ ओर से /Respondent by : Shri. V. Balaji, C.A., सुनवाई कȧ तारȣख/Date of Hearing : 25.10.2024 घोषणा कȧ तारȣख /Date of Pronouncement : 18.11.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) By means of present miscellaneous petitions, the revenue seeks to recall the order of the Tribunal passed in I.T.A. Nos. 616, 617 and 618/Chny/2023 dated 29.05.2024 for the assessment years 2018-19, 2019-20 and 2022-23. 2 MP Nos.85 to 87 /Chny/2024 2. By these Miscellaneous Petitions, the ld. Departmental Representative for the revenue has raised the following plea as under: ‘’2. There is factual error in the order of the ITAT. In the order of the AddI/JCIT (A), it was seen that all the appeals for the AY 2018-19, 2019-20 & 2022-23 were dismissed by the Addl.CIT/JCIT (A) for delay in filing appeal. The appeal was never adjudicated on merit by the Addl./JCIT (A). However facts noted in the order of the ITAT is totally opposite. Hence, the order of the ITAT is not correct on technical grounds’’. 3. We have gone through the Tribunal order dated 29.05.2024 wherein in para 3 we have given direction which reads as under:- ‘’3. We find that this issue has been decided in favour of the assessee’s by the Co-ordinate Bench in the case of ITO vs. Smt. Chengam Durga (ITA No.1491/Chny/2023 dated 08-04-2024). The Bench considering the decision of Hon’ble High Court of Madras in the case of Duraiswamy Kumaraswamy in WP No.5834 of 2022 & ors. order dated 06.10.2023 held that filing of this form in terms of Rule 128 was only directory in nature. The rule is only for the implementation of the provisions of the Act and it would always be directory in nature. Respectfully following the same, we direct Ld. AO to grant impugned Foreign Tax Credit to the assessee’’. 4. We do find no substance in the argument of ld.DR for the revenue. The ld.DR nowhere disputed the fact that the issue in these appeals are not covered by the judgment of the Hon’ble Jurisdictional High Court dated 06.10.2023 in the case of Duraiswamy Kumaraswamy in WP No.5834 of 2022 & Ors. We also find that it is unwise and unfruitful relegating to the ld.CIT(A) again which is nothing but wastage of time of the adjudicating authorities where the issue in question is directly covered by the decision of Hon’ble Jurisdictional High Court referred supra. The 3 MP Nos.85 to 87 /Chny/2024 Hon’ble Supreme Court in the case of N. Balakrishnan Vs M. Krishnamurthy AIR 1998 SC 3222 has held that when substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred. 5. In the result, the captioned Miscellaneous Petitions (MA 85, 86 and 87/Chny/2024 ) filed by the revenue stand dismissed. Order pronounced in open court on 18th day of November, 2024 at Chennai. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated :18-11-2024 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "