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of <h1>Tribunal grants Revenue's application, revives appeal over disputed tax addition under Section 40(a)(ia).</h1> <h3>Income Tax Officer, Ward-2 (1) (1), Ahmedabad Versus M/s. Eminent Infracon Pvt. Ltd.</h3> The Tribunal allowed the Miscellaneous Application filed by the Revenue, recalling its order dismissing the appeal of the assessee due to low tax effect. ... Maintainability of appeal on low tax effect - Tribunal’s dismissing the appeal of the assessee on account of low tax effect - addition on account of disallowance u/s 40(a)(ia) as in dispute in the Revenue’s appeal was made by the Assessing Officer on the basis of audit objection which was accepted by the Department - HELD THAT:- The appeal of the Revenue filed in this case thus is covered under the category of exception as specified in CBDT Circular No. 3/2018 in clause 10(c) dated 11.07.2018. As rightly contended by the learned DR, this appeal of the Revenue, therefore, is required to be disposed of by the Tribunal on merit and there is a mistake in the order of the Tribunal [2022 (2) TMI 1339 - ITAT AHMEDABAD] in dismissing the same on account of low tax effect. We, therefore, rectify the said mistake by recalling the order of the Tribunal dated 23.02.2022 and restoring the appeal of the assessee on its original number with the direction to the Registry to fix the same for hearing afresh before the regular Bench in due course. Miscellaneous Application filed by the Revenue is allowed. 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.
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