2020 (3) TMI 1364 - AT - Income Tax

Rectification of mistake - Non Maintainability of appeal on low tax effect - Tax effect below the monetary limit - HELD THAT - As assessee fairly accepted that the tax effect involved in the present appeal is more than the prescribed monetary limit of ₹ 50 lakh therefore, the order of tribunal dated 1st January 2016 may be recalled and the appeal may be fixed for hearing on merit.The registry is directed to fix the appeal for hearing by regular bench. MA filed by the revenue is allowed.

Summary

Issues Involved:
Recall of order based on tax effect exceeding prescribed limit.

Analysis:
The Appellate Tribunal ITAT Mumbai dealt with a miscellaneous application filed by the revenue seeking a recall of an order dated 1st January 2016 in ITA No. 5313/Mumbai/2015 for the assessment year 2011-12. The revenue contended that the Tribunal had dismissed their appeal based on the tax effect being below the monetary limit set by the CBDT. However, the revenue argued that the tax effect in the present appeal exceeded ?50 lakhs, contrary to the initial assessment. The authorized representative for the assessee acknowledged this fact and agreed that the order should be recalled for a merit-based decision. After considering the submissions of both parties and reviewing the grounds of appeal, the Tribunal found that the tax effect in the current appeal indeed surpassed ?50 lakhs. Consequently, the Tribunal decided to recall the order dated 1st January 2016 and directed the registry to schedule the appeal for a hearing before a regular bench.

In conclusion, the Tribunal allowed the miscellaneous application filed by the revenue, emphasizing the importance of adhering to the prescribed monetary limits set by the CBDT. The decision to recall the order was based on the acknowledgment that the tax effect in the present appeal exceeded the specified threshold, warranting a reevaluation of the case on its merits. The Tribunal's ruling demonstrates the significance of complying with regulatory directives and ensuring that appeals are assessed in accordance with the applicable financial thresholds to maintain fairness and consistency in tax matters.