JCIT Vs Armstrong Agencies Pvt. Ltd. (ITAT Delhi)
After 115BBE Relief, Tax Effect Falls Below ₹60 Lakh: ITAT Dismisses Revenue Appeal on Low Tax Effect
The Delhi ITAT dismissed the Revenue’s appeal in the case of Armstrong Agencies Pvt. Ltd. for AY 2017-18 on the ground that, after applying the law laid down in S.M.I.L.E. Microfinance Ltd., the tax effect fell below the monetary limit prescribed for departmental appeals. The Tribunal noted that the Madras High Court had held that the amended provisions of Section 115BBE apply only to transactions carried out from 01.04.2017 onwards.
After giving effect to this ruling, the remaining addition in the assessee’s case resulted in a tax effect lower than ₹60 lakhs, the threshold fixed by CBDT Circular No. 9/2024 dated 17.09.2024. In view of the binding circular on monetary limits, the Tribunal held that the appeal was not maintainable and dismissed it accordingly. Liberty was, however, granted to the Revenue to revive the appeal in accordance with law if it is subsequently found that the tax effect exceeds the prescribed limit. The appeal was thus dismissed without entering into the merits.
FULL TEXT OF THE ORDER OF ITAT DELHI
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.
