JCIT OSD, DELHI vs. AMSTRONG AGENCIES PVT LTD, DELHI

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ITA 1000/DEL/2025Status: DisposedITAT Delhi16 January 2026AY 2017-18Bench: SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER, SHRI NAVEEN CHANDRA (Accountant Member)1 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 noted a decision from the Hon'ble Karnataka High Court in S.M.I.L.E. Microfinance Ltd. Vs. ACIT, which held Section 115BBE applicable. However, applying this to the assessee's case resulted in a tax effect below the threshold prescribed by CBDT Circular No. 9/2024.

What were the facts?

The Revenue appealed an order from CIT(A)-27 concerning AY 2017-18. The appeal pertains to the applicability of Section 115BBE of the Income-tax Act, 1961, for transactions after April 1, 2017.

What were the issues?

Applicability of Section 115BBE and whether the tax effect of the addition falls below the limit prescribed by CBDT Circular No. 9/2024.

Which sections of the Income-tax Act were involved?

Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,

Before: SHRI SATBEER SINGH GODARA, & SHRI NAVEEN CHANDRA

For Appellant: Shri Vikrant A. Maheshwari, Adv
For Respondent: Shri Ankush Kalra, Sr. DR
Hearing: 12.01.2026Pronounced: 16.01.2026

This appeal by the Revenue is directed against the order of the ld.

CIT(A)-27, Delhi dated 27.12.2024 pertaining to A.Y 2017-18.

2.

We have heard the rival submissions and have perused the relevant material on record. At the very outset, we find that after giving effect to the decision of the Hon'ble Karnataka High Court in the case of S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & Page 1 of 3 [A.Y 2017-18] The J.C.I.T. Vs. Armstrong Agencies 1742 of 2020, dated 19.11.2024 (Madras) wherein the provisions of section 115BBE of the Income-tax Act, 1961 [the Act, for short] has been held as being applicable for transactions carried out from 01.04.2017 onwards. Applying the said decision in the case of the assessee, the remaining addition would render the tax effect as below the limit prescribed in the CBDT Circular No. 9/2024 dated 17.09.2024.

3.

This appeal is, accordingly, dismissed with liberty to the revenue to approach the Tribunal as per the provisions of law, should it feel that the tax effect is more than Rs. 60 lakhs.

Order pronounced in open court on 16.01.2026.

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