DCIT, CIRCLE 1(1), NEW DELHI V. LAKSHMIPAT SINGHANIA EDUCATION FOUNDATION, NEW DELHI

MA 88/DEL/2024

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT), Circle 1(1), Exemption as the appellant and Lakshmipat Singhania Education Foundation for Higher Learning as the respondent. The Revenue filed Miscellaneous Applications seeking recall of a Tribunal order that dismissed their appeals due to low tax effect. The Revenue argued that the notional tax effect on disputed additions for AY 2015-16 and AY 2016-17 exceeded the prescribed limit, thus making the appeals maintainable. The assessee opposed the recall, supporting the original dismissal based on low tax effect. The Tribunal found merit in the Revenue's argument and recalled the previous order, allowing the appeals to be heard on their merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397150 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2015-2016
• Laws Referred To: CBDT Circular No. 3/2018 dated 11.07.2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR JAIN
• Assessee Lawyers: V.P. GUPTA; ANUNAV KUMAR
• Keywords: Tax effect

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”, NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER MA NOS. 88 & 89/Del/2024 (IN ITA NOS. 3056 & 7264/DEL/2019) A.Yrs. 2015-16 & 2016-17 DCIT, CIRCLE 1(1), EXEMPTION, VS. LAKSHMIPAT SINGHANIA NEW DELHI EDUCATION FOUNDATION FOR HIGHER LEARNING, 3, PATRIOT HOUSE, BSZ MARG, PRESS AREA, NEW DELHI -2 (PAN: AABCL6470D) (Appellant) (Respondent) Assessee by : Shri V.P. Gupta, Adv. & Sh. Anunav Kumar, Adv. Department by : Sh. Dheeraj Kumar Jain, Sr. DR Date of Hearing : 30.05.2025 Date of pronouncement : 30.05.2025 ORDER PER SHAMIM YAHYA, AM By way of these Miscellaneous Applications, Revenue seeks recall of the common order of this Tribunal passed in Revenue’s I.T.A. No. 3056/Del/2019 (AY 2015-16) & ITA No. 7264/Del/2019 (AY 2016-17) decided vide order dated 09.08.2023. 2. At the time of hearing, Ld. DR for the Revenue has submitted that ITAT has dismissed the appeals of the Department on the ground that appeals are not maintainable on account of low tax effect by giving the liberty to the department to seek recall of the said Tribunal’s order at any stage for any technical reasons. 2 Now he submitted that since the effect of notational loss on disputed addition is more than the prescribed limit as per Para no. 4 of the CBDT Circular No. 3/2018 dated 11.07.2018, hence, the appeals filed by the Department are maintainable and require adjudication on merit of the case. It is further pleaded that the order dated 09.8.2023 of the Tribunal is not acceptable, in view of the following apparent mistakes:- i) Para No. 4, of the CBDT Circular No. 3/2008 dated 11.07.2018 defines the meaning of tax effect for filing of appeals which inter-alia states that “In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions’”. Therefore, the Hon’ble ITAT may be requested to reconsider the case on merit in view of the said circular dated 11.7.2018 as the notional tax effect in these cases are Rs. 6,77,81,725/- for AY 2015-16 and Rs. 4,13,27,720/- for AY 2016-17 respectively which is above the monetary limit for filing / maintainable appeal before the Tribunal. ii) The correct name of the respondent-assessee is “Lakshmipat Singhania Education Foundation for Higher Learning” whereas the name of the respondent-assessee has been wrongly mentioned in the order of the Tribunal dated 09.8.2023 as “Lakshmipat Singhania Education Foundation”. 2.1 In view of above, Ld. DR for the Revenue pleaded for recalling of the Tribunal’s order dated 09.8.2023, so that both the appeals of the Revenue may be heard on merits. 3. Per contra, Ld. AR for the assessee submitted that the Tribunal vide its order dated 09.8.2023 has rightly dismissed the appeals of the Revenue on account of low tax effect, which do not require any interference on our part, hence, the present misc. applications filed by the Revenue may be dismissed as such. 4. We have heard both the parties and perused the records. In view of the aforesaid factual matrix, we are of the considered view that the prima facie the 3 notional tax effect in these cases seems to be Rs. 6,77,81,725/- for AY 2015-16 and Rs. 4,13,27,720/- for AY 2016-17, as explained by the Ld. DR which is apparently above the monetary limit for filing / maintainable appeals before the Tribunal and therefore, the corresponding appeals of the Revenue require adjudication on the merits of the case by recalling the Tribunal’s order dated 09.8.2023. We hold and direct accordingly. 4.1 Further, it is noted that the Tribunal while passing the order dated 09.08.2023 in Revenue’s appeals, have wrongly mentioned the name of the assessee/respondent as “Lakshmipat Singhania Education Foundation”, however, the correct name of the respondent/assessee is “Lakshmipat Singhania Education Foundation for Higher Learning”. Accordingly, we rectify this mistake by holding that the correct name of the assessee/respondent may be read as “Lakshmipat Singhania Education Foundation for Higher Learning”. 5. In the result, both the Misc. Applications filed by the Revenue are allowed. Order pronounced on 30/05/2025 upon conclusion of hearing. Sd/- Sd/- [YOGERSH KUMAR U.S.] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER SRBhatnagar Copy forwarded to: - 1. Appellant 2. Respondent 3. CIT 4. CIT (A) 5. DR, ITAT Assistant Registrar, ITAT, Delhi Benches 4 "