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Income Tax Appellate Tribunal, ‘A’ BENCH, KOLKATA
Before: Shri Rajpal Yadav, Vice-(KZ) & Shri Rajesh Kumar
Per Rajpal Yadav, Vice-President (KZ):- The Revenue is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National (A.Y. 2017-2018) Ashiana Housing Limited Faceless Appeal Centre (NFAC), Delhi dated 30th October, 2023 passed for Assessment Year 2017-18.
The ld. Counsel for the assessee, at the very outset, submitted that tax effect by virtue of relief given by the ld. CIT(Appeals) is below Rs.50 lakhs and, therefore, this appeal is not maintainable. The ld. Counsel filed calculation of the tax effect. He further submitted that in Form No. 36, Revenue has worked out total tax effect at Rs.1,01,54,902/-, which is an incorrect figure. This represents the total addition and not the tax effect on that. This factum has been taken into consideration in his computation of tax effect.
With the assistance of ld. Representatives, we have gone through the record carefully. Basically, two additions were disputed before the ld. CIT(Appeals), namely – (a) addition under section 43CA of Rs.33,44,900/-; and (b) disallowance of future development expenses amounting to Rs.68,10,002/-.
The total of these two would come up to Rs.1,01,54,902/-. The tax effect after calculating the surcharge, etc. would be Rs.35,14,402/- of this addition. The ld. CIT(Appeals) has deleted the addition of the above amount. The Revenue has erroneously mentioned the tax effect equivalent to the gross amount of addition instead of 30% plus surcharge on that gross amount of addition. The issues on which these additions have been deleted (A.Y. 2017-2018) Ashiana Housing Limited do not fall within the ambit of exceptions provided in the CBDT Circular bearing No. 17 of 2019 issued on 8th August, 2019.