Low tax effect dismissal recalled after Revenue Audit Objection was found to fall within CBDT circular exceptions.

The Tribunal considered whether an earlier dismissal of Revenue appeals for low tax effect could be recalled where the Revenue Audit Objection was said to fall within the exceptions under CBDT Circular No. 3/2018. It noted that liberty had already been reserved to seek recall if any circular exception was established. On examining the material placed on record, the Tribunal found that the Revenue Audit Objection came within the stated exceptions, which justified recalling the earlier order and restoring the matter for hearing. The recall application was accordingly allowed.

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Issues: Whether the Tribunal's earlier order dismissing the Revenue's appeals for low tax effect should be recalled on the ground that the Revenue Audit Objection fell within the exceptions under the CBDT Circular.

Analysis: The Tribunal noted that in the earlier order it had granted liberty to seek recall if the Revenue satisfied any exception under CBDT Circular No. 3/2018 dated 11.07.2018. On examining the Revenue Audit Objection placed on record, the Tribunal found that it fell within the stated exceptions. That was sufficient to justify recalling the earlier order and restoring the matter for hearing.

Conclusion: The recall application was allowed and the earlier order was recalled.

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