ITAT Dismisses Revenue's Appeal Against Sun Gold Capital Limited due to Low Tax Effect as per CBDT Circular [Read Order]
It was noted that the tax effect in the appeal was ₹52,28,913, which was below the ₹60,00,000 threshold for maintainability under the CBDT Circular
![ITAT Dismisses Revenues Appeal Against Sun Gold Capital Limited due to Low Tax Effect as per CBDT Circular [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/ITAT-ITAT-Ahmedabad-Sun-Gold-Capital-Limited-case-updates-TAXSCAN.jpg "ITAT Dismisses Revenues Appeal Against Sun Gold Capital Limited due to Low Tax Effect as per CBDT Circular [Read Order]")
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) dismissed the Revenue's appeal against Sun Gold Capital Limited due to low tax effect as per Central Board of Direct Taxes (CBDT) Circular No. 09/2024. The Revenue-appellant, appealed against the order passed for the Assessment Year(AY) 2016-17 by CIT(A) in the case of Sun Gold Capital Limited, respondent-assessee, and...
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) dismissed the Revenue's appeal against Sun Gold Capital Limited due to low tax effect as per Central Board of Direct Taxes (CBDT) Circular No. 09/2024.
The Revenue-appellant, appealed against the order passed for the Assessment Year(AY) 2016-17 by CIT(A) in the case of Sun Gold Capital Limited, respondent-assessee, and raised several grounds. The Revenue argued that the CIT(A) wrongly held the proceedings under section 148 of the Income Tax Act as void and quashed the notice issued under section 148 of the Act.
Read More: CBDT Circular Leads to Dismissal of Revenue’s Appeal: ITAT upholds Threshold Limit
It also contested the CIT(A)'s decision to delete the addition of Rs. 1,32,50,000 for unexplained cash credits and the deletion of Rs. 25,65,000 treated as unexplained cash credits. Additionally, the Revenue claimed that the CIT(A) erred by stating that the assessee was not given a chance for cross-examination, which was contrary to the facts.
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Read More:ITAT Dismisses Revenue’s Appeal Due to Low Tax Effect Under CBDT Circular
The two member bench comprising Dr.BRR Kumar (Vice President) and T.R.Senthil Kumar (Judicial Member) noted that, according to Form No. 36, the tax effect in the Departmental Appeal was Rs. 52,28,913/-, which was below the Rs. 60,00,000/- threshold and could be withdrawn under CBDT Circular No. 09/2024 dated 17.09.2024. The Revenue had the option to restore the appeal if any exceptions applied as per the Circular.
Read More: Tax Effect below Threshold Limit: ITAT dismisses Revenue’s Appeal
In short,the appeal filed by the revenue was dismissed.
To Read the full text of the Order CLICK HERE
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