2023 (4) TMI 646 - AT - Income Tax

Rectification of mistake u/s 254 - recalling the order of Tribunal 2020 (9) TMI 1288 - ITAT MUMBAI - Department submitted that the Tribunal has dismissed aforesaid appeal of the Revenue on account of low tax effect in the light of CBDT Circular No.17/2019 dated 08/08/2019 - DR pointed that the assessment in the aforesaid case was reopened on the basis of information received from the Sales Tax Department, Government of Maharashtra. Therefore, the appeal by Revenue falls under exception mentioned in para 10(e) of the CBDT communication dated 20/08/2018 - HELD THAT - The Tribunal vide order dated 16/09/2020 had dismissed the appeal of Revenue on account of low tax effect. A perusal of the assessment order passed u/s. 143(3) of the Act shows that the assessment was reopened on the basis of information received from Sales Tax Department, Government of Maharashtra. Though the information was received from DGIT (Inv), but the source of information was Sales Tax Department. This clearly indicate that the reopening was based on information sourced from external agency. In the aforesaid facts the Tribunal order dated 16/09/2020 is recalled and the appeal is restored to its original number.

Summary

Issues:
Recalling of Tribunal order due to low tax effect in the appeal by Revenue.

Analysis:
The Appellate Tribunal ITAT Mumbai, in a judgment delivered by Shri Vikas Awasthy, Judicial Member, addressed a Miscellaneous Application under section 254(2) of the Income Tax Act, 1961. The Department filed the application seeking the recall of the Tribunal's order in ITA No.3238/Mum/2019 for assessment years 2010-11 dated 16/09/2020. The Department, represented by Shri T. Shankar, argued that the Tribunal had dismissed the Revenue's appeal due to low tax effect following CBDT Circular No.17/2019 dated 08/08/2019. It was highlighted that the assessment in question was reopened based on information from the Sales Tax Department, Government of Maharashtra, falling under an exception mentioned in para 10(e) of the CBDT communication dated 20/08/2018.

Upon hearing the submissions made by the Departmental Representative, the Tribunal noted that the assessment was indeed reopened based on information received from the Sales Tax Department, Government of Maharashtra, even though the information was routed through DGIT (Inv). This indicated that the reopening was triggered by information sourced from an external agency. Consequently, the Tribunal decided to recall its order dated 16/09/2020, which dismissed the appeal of the Revenue due to low tax effect. The appeal was then restored to its original number, allowing the Miscellaneous Application by the Revenue.

As a result of the judgment, the Registry was instructed to schedule the appeal for a hearing in due course after serving notice to both parties. The order was pronounced in open Court on Friday, the 24th day of February, 2023.