Tribunal grants Revenue's application, revives appeal over disputed tax addition under Section 40(a)(ia).

The Tribunal allowed the Miscellaneous Application filed by the Revenue, recalling its order dismissing the appeal of the assessee due to low tax effect. The appeal, involving a disputed addition under Section 40(a)(ia) of the Act, was restored for a fresh hearing before the regular Bench.

---

---

Issues Involved:
Recall of Tribunal's order due to low tax effect in the appeal.

Analysis:
The judgment pertains to a Miscellaneous Application filed by the Revenue seeking the recall of the Tribunal's order dated 23.02.2022, which dismissed the appeal of the assessee on account of low tax effect. During the hearing, no one appeared on behalf of the assessee. The Revenue's application was disposed of ex parte after hearing the arguments of the learned DR and examining the relevant material on record. The addition of Rs.1,97,194/- on account of disallowance under Section 40(a)(ia) of the Act was in dispute in the Revenue's appeal, based on an audit objection accepted by the Department. The Revenue argued that the appeal falls under an exception specified in CBDT Circular No. 3/2018, requiring it to be decided on merit. The Tribunal acknowledged the mistake in dismissing the appeal on account of low tax effect and rectified it by recalling the order dated 23.02.2022, thereby restoring the appeal of the assessee for a fresh hearing before the regular Bench.

In conclusion, the Miscellaneous Application filed by the Revenue was allowed, and the order was pronounced in an open court on 26th August 2022 at Ahmedabad.

---