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Income Tax Appellate Tribunal, AHMEDABAD – BENCH ‘B’
Before: SHRI RAJPAL YADAV, HON’BLE & SHRI WASEEM AHMED HON’BLE
आदेश/O R D E R
PER RAJPAL YADAV, JUDICIAL MEMBER: By the above Misc. Application, the Revenue seeks to recall the order qua passed by the Tribunal dated 30.7.2018 in group of cases. In the application, it is inter alia pleaded by the Department that the 2. above appeal of the Revenue was dismissed in limine by the Tribunal in view of CBDT Circular No.3 of 2018. It is pleaded that since tax effect involved in this case was Rs.21,51,287/-, therefore, the order qua ITA No.946/Ahd/2016 is to be recalled and the appeal be restored for hearing the issue on merit. Considering the above aspect, we restore the appeal to its original number, and allow Revenue’s MA.
MA No.24/AHD/2019 With ITA. 2 3. With the consent of the ld.DR, we took up the appeal for hearing on merit. We confronted the ld.DR to demonstrate as to whether tax effect is more than Rs.50 lakhs, and why this appeal again be not dismissed by applying latest CBDT Instruction No.17 of 2019 dated 8.8.2019, the ld.DR was unable to controvert the reasons sought by us. He submitted that tax effect is roughly Rs.21.50 lakhs. Therefore, in view of the latest CBDT instruction, and in view of provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is dismissed.
However, it is observed that in case on re-verification at the end of the AO it can be demonstrated that the tax effect is more, or Revenue's case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.
In the result, MA is allowed; appeal is dismissed due to low tax effect.
Order pronounced in the Court on 10th October, 2019 at Ahmedabad.