Loading judgment…
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.
Held
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.
Key Issues
Applicability of Section 115BBE and whether the tax effect of the addition falls below the limit prescribed by CBDT Circular No. 9/2024.
Sections Cited
115BBE of the Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,
Before: SHRI SATBEER SINGH GODARA, & SHRI NAVEEN CHANDRA
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.
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.
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.