2019 (5) TMI 1594 - AT - Income Tax

Rectification u/s 254 - Low tax effect - maintainability of appeal - monetary limit - HELD THAT - One of the ground to dismissed the appeal is tax effect whereas the other ground is that the case of the assessee was duly covered by Hon ble ITAT by assessee s own case for the A.Y. 2010-11 2018 (8) TMI 1813 - ITAT MUMBAI . Since the matter of controversy has been adjudicated not only the based on Circular No.03/2018 dated 11.07.2018 but also based upon on merits being duly covered by decision of Hon ble ITAT in the assessee s own case for the A.Y. 2010-11 therefore, in the said circumstances, we are of the view that there is no mistake apparent on record. Hence, the contention of the Revenue nowhere came within the ambit of provisions u/s 254(2) of the Act, hence, the present miscellaneous application is dismissed.

Summary

Issues involved:
1. Recalling an order based on a mistake apparent on record.
2. Interpretation of CBDT Circular No. 3/2018 dated 11.07.2018.
3. Dismissal of a miscellaneous application by the Revenue.

Detailed Analysis:

1. Recalling an order based on a mistake apparent on record:
The judgment pertains to a Miscellaneous Application arising from an appeal for the A.Y. 2009-10. The Revenue appealed against the CIT(A) order, which was decided by the ITAT on 28.08.2018. Initially, the appeal was based on the tax effect being below 20 lakhs. However, a subsequent CBDT Circular clarified that cases involving information from law enforcement agencies should not be withdrawn. The Revenue argued for the order's recall due to this mistake apparent on record. The Tribunal examined the facts and held that as the case was already covered by a previous ITAT decision and the tax effect was below the limit, there was no mistake apparent on record. Consequently, the application for recall was dismissed.

2. Interpretation of CBDT Circular No. 3/2018 dated 11.07.2018:
The ITAT analyzed the CBDT Circular No. 3/2018 dated 11.07.2018, which directed that departmental appeals with a tax effect below 20 lakhs should be withdrawn or not pressed. Exceptions were provided for cases involving information from specific law enforcement agencies. In this case, the appeal did not fall under the exceptions, and the tax demand was below the specified limit. Therefore, the Tribunal dismissed the Revenue's appeal as not maintainable based on the CBDT Circular's guidelines.

3. Dismissal of a miscellaneous application by the Revenue:
After considering the arguments and reviewing the orders of the authorities, the Tribunal found that the grounds for dismissing the appeal were related to tax effect and the case's coverage in a previous ITAT decision. The Tribunal concluded that the case had been adjudicated based on both the CBDT Circular and the merits, as established in the assessee's own case for A.Y. 2010-11. As there was no mistake apparent on record, the Tribunal dismissed the Revenue's miscellaneous application. The order was pronounced on 22.05.2019, thereby concluding the matter.

This detailed analysis encapsulates the key aspects and conclusions of the judgment delivered by the Appellate Tribunal ITAT MUMBAI, providing a comprehensive understanding of the legal issues involved and the Tribunal's rationale in addressing them.