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Income Tax Appellate Tribunal, GUWAHATI BENCH AT KOLKATA
Before: SRI RAJPAL YADAV & SRI GIRISH AGRAWAL
M.A. No. 2/GTY/2020 I.T.A. No.: 67/GTY/2019 C.O. No. 6/GTY/2019 M/s. Assam Tea Industries. Appearances by: Sh. N. T. Sherpa, JCIT, appeared on behalf of the Revenue. Sh. Sanjay Mody, FCA, appeared on behalf of the Assessee. Date of concluding the hearing : April 5th, 2023 Date of pronouncing the order : April 27th, 2023 ORDER Per Girish Agrawal, Accountant Member: By way of this Miscellaneous Application, the Revenue seeks to recall the order of the Tribunal in 23.08.2019 wherein the Tribunal had dismissed the appeal of the Revenue, involving the issue of low tax effect.
Revenue has filed this Miscellaneous Petition on the following grounds: “
In consideration of the fact that the Tax Effect in is Rs.70,88,430/- which is above the monetary ceiling prescribed in Circular No. 17/2019 dated 08/-08-2019, the Hon'ble ITAT, Gauhati may be pleased to recall it's order dated 23-08-2019 and restore the departmental Appeal for being decided on merit. In ITA No. 64/Gau/2018 in respect of M/s Assam Tea Industries [AAKFA4866A] A/Y 2014-15.”
3. The Coordinate Bench of ITAT, Kolkata had disposed off the appeal filed by the Revenue in ITA No. 67/GAU/2019 along with CO No. 06/GAU/2019 for AY 2014-15, in view of the CBDT Circular No. 17/2019 dated 08.08.2019 on account of monetary limits laid down for filing of appeals by the Department before the ITAT and Hon'ble High Courts and SLP before the Hon'ble Supreme Court of India. In the said order of the Coordinate Bench, opportunity was granted vide para 4 to the Revenue for moving Miscellaneous Application for recalling the order if at a later point of time, it finds that the tax effect in the appeal is more than Rs. 50 lakh or even otherwise if the appeal of the Revenue is maintainable.
4. Ld. Sr. D/R referred to Form No. 36 wherein the total tax effect noted is of Rs. 70,88,430/- and thus, requested for recalling the order. However, ld. M.A. No. 2/GTY/2020 I.T.A. No.: 67/GTY/2019 C.O. No. 6/GTY/2019 M/s. Assam Tea Industries. Counsel for the assessee pointed that Clause-6 of the CBDT Circular which deals with income computed under the provisions of Section 115JB or 115JC of the Act has not been dealt with which will result into tax effect of less than Rs. 50 lakh.
Considering the submissions made by ld. Counsel for the assessee, ld. Sr. D/R requested for some time to go through the records and arrive at the correct computation of the tax effect in terms of the CBDT Circular. The case was then listed for hearing from 3rd to 5th April, 2023.
Ld. Counsel for the assessee submitted a calculation sheet to arrive at the tax effect as per Clause-6 of the CBDT Circular. For ease of understanding, Clause-6 is reproduced as under:
6. Further, where income is computed under the provisions of section 115JB or section 115JC, for the purposes of determination of “tax effect’, tax on the total income assessed shall be computed as per the following formula- (A — B) + (C — D) where, A = the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions); B = the total income that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of the disputed issues under general provisions; C = the total income assessed as per the provisions contained in section 115JB or section 115JC; D = the total income that would have been chargeable had the total income assessed as per the provisions contained in section 115JB or section H5JCwas reduced by the amount of disputed issues under the said provisions: However, where the amount of disputed issues is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D.