DCIT, CENTRAL CIRCLE- 28, NEW DELHI, NEW DELHI vs. HAZOORILAL AND SONS JEWELLERS PRIVATE LIMITED, NEW DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. Manish Agarwal
Per Satbeer Singh Godara, Judicial Member:
This Revenue’s appeal for Assessment Year 2017-18, arises against the CIT(A)-29, New Delhi’s in case No. CIT(A), Delhi-
29/10627/2016-17 dated 19.09.2023, in proceedings u/s 147 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It emerges at the outset during the course of hearing that the Revenue’s instant appeal is stated to be involving tax effect of Rs.77,25,000/- since seeking to revive addition of Rs.1,00,00,000/- representing alleged accommodation Hazoorilal & Sons Jewellers Pvt. Ltd.
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entry(ies) availed from various entry operators. Mr. Dhanesta further clarifies that the above stated tax effect of Rs.77,25,000/- has been quantified in light of section 115BBE of the Act applicable in the impugned assessment year 2017-18
stipulating higher rate of tax @ 60%.
Faced with this situation, we note that hon’ble Madras high court recent decision in S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue in assessee’s favour and against the department that section 115BBE applies on transactions carried out on or after 01.04.2017 i.e. A.Y. 2018- 19 onwards than in A.Y. 2017-18 involved herein. That being the case, we quote CBDT recent landmark Circular No. 9/2024, dated 17.09.2024 prescribing minimum tax effect of Rs.60,00,000/- to conclude that the Revneue’s instant appeal deserves to be rejected for this precise reason alone. Ordered accordingly.
1 All other pleadings on merit stand rendered academic. Hazoorilal & Sons Jewellers Pvt. Ltd.
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5. This Revenue’s appeal is dismissed in above terms subject to all just exceptions.
Order Pronounced in the Open Court on 24/02/2025. (Manish Agarwal) (Satbeer Singh Godara)
Accountant Member Judicial Member
Dated: 24/02/2025
*Subodh Kumar, Sr. PS*