Tribunal Rejects Revenue's Application; Upholds Initial Dismissal Due to Low Tax Effect, Citing CBDT Circular Compliance.

The Tribunal dismissed the Revenue's Miscellaneous Application, upholding its initial decision to dismiss the Revenue's appeal due to a tax effect below Rs. 10 lakh, in accordance with CBDT Circular No. 21/2015. The Revenue's argument for an exception based on an accepted audit objection was rejected as it was not raised during the appeal process. The Tribunal referred to the Gujarat HC's decision, which emphasized the necessity of raising objections during the appeal process for consideration. Consequently, the Tribunal found no apparent mistake in its order, affirming the lack of merit in the Revenue's application.

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Issues:
1. Dismissal of Revenue's appeal by Tribunal on low tax effect.
2. Contention regarding accepted audit objection.
3. Application of CBDT Circular No.21/2015.
4. Reference to the decision of Hon'ble Gujarat High Court.

Analysis:
1. The Revenue filed a Miscellaneous Application against the Tribunal's order dismissing its appeal due to the tax effect being below Rs. 10 lakh. The Revenue argued that despite an accepted audit objection, the appeal should have been heard on merit. The Tribunal dismissed the appeal following CBDT instructions.

2. The assessee's representative contended that the Revenue's claim of falling under an exception in the CBDT Circular cannot be accepted as it was not raised during the hearing. The representative cited the 'CIT vs. Concord Pharmaceuticals' case from the Gujarat High Court in support.

3. Upon examination, the Tribunal found that the tax effect in the Revenue's appeal was indeed less than Rs. 10 lakhs, leading to its dismissal as per the CBDT Circular. The Revenue raised a ground of an accepted audit objection, seeking a merit-based decision. The Tribunal referred to the Gujarat High Court's decision regarding objections raised during the appeal process.

4. The Gujarat High Court's decision emphasized that objections must be raised during the appeal process for consideration. If objections are not raised and the appeal is dismissed based on low tax effect, the Department cannot seek a second chance. The Tribunal must consider relevant parameters while applying circulars to case facts.

5. As the Revenue did not raise objections during the appeal process regarding falling under an exception, the Tribunal found no apparent mistake in its order. The Miscellaneous Application by the Revenue was dismissed based on the lack of merit in light of the Gujarat High Court's decision.

6. The Tribunal, in line with the ITAT Rules, dismissed the Miscellaneous Application, upholding the initial order's decision to dismiss the Revenue's appeal due to low tax effect.

This detailed analysis covers the issues raised in the judgment, highlighting the Tribunal's decision, arguments from both sides, the application of relevant circulars, and the reference to a significant decision from the Gujarat High Court.

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