2019 (3) TMI 1641 - AT - Income Tax

Rectification of mistake on Maintainability of appeal - low tax effect - tax effect involved in the appeals is less than 20 lacs - tax effect being less than 20 lakhs whereas the record shows that the amount involved in the appeal is 4, 10, 80, 602/- and the total tax effect is 1, 33, 28, 601/- - HELD THAT - As tax effect involved in the appeal filed by the Revenue which is much more than the prescribed limit of 20 lakhs and therefore there is a mistake crept in the order of the Tribunal dated 10/8/2018 dismissing the appeal of the Revenue on account of low tax effect. Considering the submissions of the assessee we recall the order only in the case of the present assesse in the interest of justice and direct the Registry to fix this appeal for hearing on 1/5/2019.

Summary

Issues:
1. Recalling of combined order by the Revenue for a Tribunal's decision on appeal dismissal due to low tax effect.
2. Discrepancy in the tax effect amount leading to the appeal recall application.
3. Consideration of rival submissions and recall of the order for fresh hearing.

Analysis:
The judgment issued by the Appellate Tribunal ITAT Lucknow pertains to a Miscellaneous Application filed by the Revenue seeking the recalling of a combined order dated 10/8/2018 passed in various appeals, including ITA No.249/Lkw/2018 for the assessment year 2014-15. The Revenue contended that the Tribunal had erroneously dismissed their appeal based on the tax effect being less than ?20 lakhs, while the actual amount involved was ?4,10,80,602/- with a total tax effect of ?1,33,28,601/-, exceeding the prescribed limit. Consequently, the Revenue requested the order to be recalled for fresh hearing in the interest of justice.

Upon reviewing the submissions, the Tribunal acknowledged the mistake in dismissing the Revenue's appeal due to the tax effect threshold. Considering the arguments presented and in the interest of justice, the Tribunal decided to recall the order dated 10/8/2018 specifically in the case of the present assessee related to ITA No.249/Lkw/2018. The Registry was directed to schedule the appeal for a fresh hearing on 1/5/2019 without issuing a new notice to the assessee, as the hearing date was already announced in the open court. Ultimately, the Miscellaneous Application of the assessee was allowed, leading to the order being pronounced in the open court on 20/03/2019.

This judgment highlights the importance of ensuring accuracy in determining tax effects and the need for rectification in case of errors to uphold the principles of justice and fair proceedings in tax matters.