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Facts
The Revenue appealed an order related to Assessment Year 2017-18, concerning an addition under section 69A read with section 115BBE of the Income Tax Act, 1961. The tax effect involved was stated to be Rs. 80,15,000/-.
Held
The Tribunal noted that the tax effect was less than the prescribed limit of Rs. 60 lakhs as per CBDT Circular No. 9/2024. Furthermore, a precedent was established that Section 115BBE applies only to transactions on or after April 1, 2017.
Key Issues
Whether the addition under Section 69A read with Section 115BBE is valid for the assessment year, and if the tax effect falls within the prescribed monetary limits for appeal.
Sections Cited
69A, 115BBE, 143(3)
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Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman
ORDER
Per Satbeer Singh Godara, Judicial Member:
This Revenue’s appeal for Assessment Year 2017-18, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024–25/1071038675(1) dated 09.12.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
Coming to the Revenue’s sole substantive ground herein seeking to revive section 69A r.w.s 115BBE addition of Rs.80,15,000/-, it emerges at the outset that the tax effect involves in the Revenue's instant appeal is less than the
Learned departmental representative vehemently argues that the Revenue’s Form-36 herein has computed tax effect of Rs.60,11,250/- in light of section 115BBE of the Act. We notice that case law S.M.I.L.E Microfinance Limited Vs. The ACIT CC-1 in W.P.(MD) No.2078 of 2020 & W.M.P. (MD) No. 1742 of 2020 has already settled the issue that the said provision applies for transactions done on or after 01.04.2017 only. We thus reject the Revenue’s instant appeal as covered by the CBDT’s foregoing circular in very terms.