ASSISTANT COMMISSIONER OF INCOME TAX, DELHI vs. LORD FINCAP LIMITED, DELHI

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ITA 7781/DEL/2025Status: DisposedITAT Delhi25 May 2026AY 2017-183 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the applicability of Section 115BBE is for transactions on or after April 1, 2017. Based on this, the tax effect was found to be less than the minimum threshold of Rs. 60 lakhs specified by CBDT Circular No. 9/2024.

What were the facts?

The Revenue appealed against the deletion of an unexplained cash credit addition of Rs. 1,42,50,000/- by the CIT(A)/NFAC. The Assessing Officer had invoked Section 115BBE, applying a 60% tax rate.

What were the issues?

Whether the tax effect of the addition made under Section 115BBE was sufficient to meet the threshold for appeal as per CBDT circular, and the applicability of Section 115BBE to the assessment year in question.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: Adv. Sh. Ankit Kumar, Adv
For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 28.04.2026Pronounced: 28.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No.7781/Del/2025 Assessment Year: 2017-18 ACIT, Vs. Lord Fincap Ltd., New Delhi HS-33, Kailash Colony, South Delhi, New Delhi PAN: AAACL2326F (Appellant) (Respondent) Assessee by Sh. Amol Sinha, Adv. Sh. Ankit Kumar, Adv. Department by Ms. Ankush Kalra, Sr. DR Date of hearing 28.04.2026 Date of pronouncement 28.04.2026 ORDER PER SATBEER SINGH GODARA, JM

This Revenue’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1080923464(1), dated 19.09.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

ITA No.7781/Del/2025

2.

The Revenue’s sole substantive grievance raised herein seeks to reverse the CIT(A)/NFAC’s action deleting section 68 unexplained cash credits addition of Rs.1,42,50,000/- made in the assessee’s hands in assessment order date 31.12.2019. 3. That being the case, we sought to ascertain the tax effect involved herein. The Revenue’s case before us is that since the learned Assessing Officer had invoked section 115BBE of the Act applying tax @ 60%, the same comes to very much more than the minimum tax effect of Rs. 60 lakhs in the CBDT’s landmark Circular No. 9/2024, dated 17th September, 2024. 3. It could hardly dispute that case law S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) has already settled the issue that the impugned statutory provision of section 115BBE gets attracted qua for the transactions done on or after 01.04.2017. We thus conclude in this factual backdrop that the tax effect comes to be less than that prescribed of Rs.60 lakhs in the aforesaid CBDT’s circular. This Revenue’s sole ground fails in very terms. 4. This Revenue’s appeal is dismissed. Order pronounced in the open court on 28th April, 2026

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ITA No.7781/Del/2025

Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 25th May, 2026. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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