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Income Tax Appellate Tribunal, DELHI A BENCH: NEW DELHI
Before: SHRI YOGESH KUMAR U.S & SHRI MANISH AGARWAL
This appeal is filed by the Revenue against the order dated 01.07.2024 by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld.CIT(A)”] in Appeal No. CIT(A), Delhi-4/10701/2019-20 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 29.12.2019 passed u/s 143(3) of the Act pertaining to Assessment Year 2017-18.
This appeal is filed delayed by 13 days and an application for condonation of delay was filed wherein it is stated by the AO that due to time barring penalty and re-opening of cases u/s 148, the appeal could not be filed within time and delay was of only 13 days.
It is thus requested that delay be condoned and appeal be admitted for adjudication.
On the other hand, Ld.AR for the assessee objected to the condonation of delay.
Heard both the parties. Considering the facts stated by AO being engaged in time barring matters, we find that there is reasonable cause in filing the appeal delayed. Therefore, the delay is condoned and appeal is admitted for adjudication.
Heard both parties and perused the material available on record. In the instant appeal filed by the Revenue is having total tax effect of INR 69,64,821/- on the additions challenged before us of INR 90,15,950/-. The AO made addition of INR 83,59,950/- u/s 69C of the Act and further addition of INR 6,56,000/- was made u/s 68 and invoked the provision of section 115BBE of the Act and charged tax @ 60% on such additions. Accordingly tax effect was computed at INR 69,64,821/-.
That being the case we sought to verify the total tax effect involved in the Revenue’s instant appeal. Ld. Sr. DR, submits that the ld. AO has computed the same at Rs. 69,64,821/-. However, we find no merit in the above computation, once Hon’ble Madras High Court in the case of SMILE Microfinance Ltd. v. ACIT in WP(MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue that Section 115BBE applies on transactions on or after 01.04.2017 only. We thus, conclude that going by the consequential tax effect computation the Revenue’s instant appeal is hit by the CBDT Circular No. 09 of 2024 dated 17.09.2024 on account of low tax effect, as per the normal provisions. Revenue’s instant appeal is dismissed. Revenue is at liberty to move application if the case is fallen under any exception.
In the result, appeal of the Revenue is dismissed.
Order pronounced in the open Court on 26.09.2025.