THE DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(3), AHMEDABAD vs. M/S. DESAI IMPEX PVT. LTD., AHMEDABAD

ITSSA 26/AHD/2023Status: DisposedITAT Ahmedabad22 January 2025AY 2016-172 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 dismissed the appeal filed by the Revenue. The primary reason for dismissal was the tax effect involved in the appeal. The judgment explicitly refers to Circular No. 9 of 2024 dated 17.09.2024. The Tribunal observed that the amount of additions on which the Revenue was in appeal was Rs. 1.58 crores, with a tax effect of Rs. 52,30,210/- (calculated at 33.063%) and a total tax effect of Rs. 58,38,655/-. Considering these figures and the aforementioned circular, the Tribunal found it appropriate to dismiss the Revenue's appeal. No specific findings were made on the merits of the additions themselves, as the appeal was disposed of on a preliminary ground.

What were the facts?

The Revenue, specifically the Deputy Commissioner of Income-tax, Central Circle-1(3), Ahmedabad, has filed an appeal against the order dated 26.12.2022 passed by the Commissioner of Income-tax (Appeals)-11, Ahmedabad. This appeal pertains to Assessment Year 2016-17 and concerns an amount of additions of Rs. 1.58 crores. The tax effect on these additions is calculated at Rs. 52,30,210/- at a rate of 33.063% (30% tax + 7% surcharge + 3% cess). The total tax effect as per column 10 of Form No. 36 is Rs. 58,38,655/-. The appeal was heard on 20.11.2024 and pronounced on 22.01.2025.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect involved, in light of Circular No. 9 of 2024 dated 17.09.2024? Assessee's Contention: The respondent (assessee) has not recorded any specific contentions in the provided judgment. The Tribunal's decision is based on the Revenue's appeal and its own assessment of the tax effect. Revenue's Contention: The Revenue has filed the appeal against the order of the CIT(A). The judgment does not explicitly detail the Revenue's arguments regarding the merits of the additions, but rather focuses on the procedural aspect of the appeal's maintainability due to the tax effect.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-MS. SUCHITRA KAMBLE

For Appellant: Shri V. Nandakumar, CIT-DR

For Respondent: Shri M.J. Shah, Advocate

Hearing: 20.11.2024Pronounced: 22.01.2025

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

This appeal has been filed by the Revenue against the order of the learned Commissioner of Income-tax (Appeals)-11, Ahmedabad (in short ‘the CIT(A)’) dated 26.12.2022 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2016-17. 2. At the outset, we have examined the Form No. 36 filed by the Revenue and find that the amount of additions on which the Revenue is in appeal amounts to Rs. 1.58 crores on which the amount of tax @ 33.063% (30% tax + 7% sur-charge+3% cess) is determined at Rs.52,30,210/-. Even the column No. 10 of the Form No.36 depicts Total Tax effect of Rs.58,38,655/-. Hence, keeping in view the amount of tax involved and Circular No.9 of 2024 dated 17.09.2024, the appeal of the Revenue is hereby dismissed.

The order is pronounced in the open Court on 22.01.2025 (SUCHITRA KAMBLE) VICE-PRESIDENT Ahmedabad; Dated 22/01/2025 btk

IT(SS)A No. 26/Ahd/2023 Asst. Year : 2016-17 - 2–

आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : अपीलाथ" / The Appellant

""थ" / The Respondent. 2. संबंिधत आयकर आयु" / Concerned CIT 3. 4. आयकर आयु"(अपील) / The CIT(A)- 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file. आदेशानुसार/ BY ORDER,उप/सहायक पंजीकार (Dy./Asstt.

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