ITAT Dismisses Revenue's Appeal Due to Low Tax Effect Under CBDT Circular [Read Order]
The ITAT found that the tax effect of Rs. 58,18,619 was below the prescribed threshold, rendering the appeal not maintainable.
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The Delhi Bench of Income Tax Appellate Tribunal(ITAT) dismissed the Revenue's appeal due to low tax effect under Central Board of Direct Taxes(CBDT) Circular No. 09/2024. The Revenue-appellant,appealed against the order dated 27.02.2024 passed by the CIT(A) for the Assessment Year 2016- 17 where Hindukush Construction Pvt. Ltd. was the respondent-assessee. The Revenue raised several...
The Delhi Bench of Income Tax Appellate Tribunal(ITAT) dismissed the Revenue's appeal due to low tax effect under Central Board of Direct Taxes(CBDT) Circular No. 09/2024.
The Revenue-appellant,appealed against the order dated 27.02.2024 passed by the CIT(A) for the Assessment Year 2016- 17 where Hindukush Construction Pvt. Ltd. was the respondent-assessee. The Revenue raised several grounds, contending that the CIT(A) erred in deleting the Rs. 50,00,000/- addition and disallowance under Section 68, as the assessee failed to provide sufficient evidence for the genuineness and creditworthiness of the unsecured loan, referencing the Rupal Jain Vs. CIT (2023) ruling.
Read More: Tax Effect below Threshold Limit: ITAT dismisses Revenue’s Appeal
The Revenue also argued that the CIT(A) wrongly deleted the Rs. 26,93,388/- disallowance despite the absence of proper bills and vouchers, and the Rs. 99,05,192/- disallowance for excess depreciation, as the increase in opening WDV was unsubstantiated. Lastly, the Revenue claimed that the CIT(A) erred by ignoring the AO's Remand Report under Rule 46A in deleting the Rs. 1,75,98,580/- disallowance.
Read More: ITAT dismisses Revenue Appeal on Ground of CBDT Circular on Low Tax Effect
The assessee did not appear, even though the notice was issued and returned by the postal authorities. Therefore, the Revenue's appeal was heard ex-parte, based on the authorised representative’s submissions and a review of the records.
Read More: CBDT Circular Strikes again: ITAT dismisses Revenue’s Appeal due to Tax Effect Threshold
The two member bench comprising Vimal Kumar(Judicial Member) and Shamim Yahya(Accountant Member) dismissed the Revenue's appeal as not maintainable, citing CBDT Circular No. 09/2024 dated 17.09.2024, with the departmental representative stating that the tax effect in this case was Rs. 58,18,619/-. As a result,the appeal filed by the revenue was dismissed.
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