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TMI Blog2020 (1) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... equired to be examined on merit. Simply the appeal would not be filed because the case falls within the exceptional clause of the CBDT Instruction for not filing the appeal where the tax effect by virtue of relief granted by the CIT(A) is less than the monetary limit for filing such appeals. In other words, the Department has to assess the merits of the dispute involved and they will not file further appeal against the order of the CIT(A) or ITAT in a mechanical manner. Department has not brought any substantial material on the record pointing out that appeal was filed after evaluation of merit on the issues involved. It sought to recall the order of the Tribunal merely on the basis of audit objection, which is not sufficient for recalli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such appeal is not maintainable before the Tribunal. 4. It has been further pleaded that Instruction No.3/2018 contains exceptional clause at Sl.No.8 of the Instruction. According to sub-clause (c) of clause 8 if a Revenue audit objection has been accepted by the Department, then the appeals of such issues would be contested on merit and will not be withdrawn by virtue of these instructions. Since it was a case, reopened on audit objection, therefore it falls within the exceptional clause provided in the Instruction. 5. However, during the course of hearing, we have confronted the Ld. DR with the CBDT Instruction bearing No.5/2017 dated 23/01/2017. These instructions provide that even if an assessment is being reopened on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2. The Hon ble Bombay High Court has considered this Circular and observed that merely raising of the audit objection is not sufficient for recall of the order. The relevant part of the discussion of the Hon ble Bombay High Court has held as under: 8. It is conceded that while seeking to restore Income Tax Appeal No.254 of 2013 on the file of this Court, neither the Revenue s Circular dated 11-7-2018 is referred nor any condition therein. If the condition now relied upon is with regard to the Revenue Audit Objection, then, mere raising of this objection in terms of this Circular is not enough. The Revenue will have to point out that this audit objection has been accepted by the Department. We have no such record before us. 9. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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