DCIT, CIRCLE-14(2), NEW DELHI V. KRISHAN KRIPA COMPUTERS INDUSTRIES PVT LTD, NEW DELHI

ITA 9500/DEL/2019

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax against Krishna Kirpa Computer Industries P. Ltd. concerning the assessment year 2015-16. The appeal was directed against the order of the Commissioner of Income Tax (Appeals)-5, New Delhi. The primary contention was the tax effect involved in the appeal, which was argued to be below the threshold required for the Revenue to file an appeal. The assessee provided a tax computation showing a demand of Rs.57,09,181, which is less than the Rs.60 lakhs limit. The Department acknowledged this computation but maintained a different figure in their formal appeal documents. Ultimately, the Tribunal dismissed the appeal due to the low tax effect, granting liberty to the Revenue to revive the appeal if exceptions in Circular No. 5/2024 apply.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298901 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Laws Referred To: Circular No. 9/2014, Circular No. 5/2024 dated 15.03.2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: S DIVYANSHU AGARWAL; ANUBHAV RASTOGI; ADVOCATES
• Keywords: Tax effect

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी एस įरफौर रहमान, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER आअसं.9500/िदʟी/2019(िन.व. 2015-16) ITA No. 9500/DEL/2019 (A.Y.2015-16) Deputy Commissioner of Income Tax, Circle-14(2), R. No. 334B, CR Building, IP Estate, New Delhi 110002 ...... अपीलाथᱮ/Appellant बनाम Vs. Krishna Kirpa Computer Industries P. Ltd., Shop No.18, Rishab IPEX Shopping Mall, 1st Floor, I.P Extension, Patparganj, Near Victor Public School, New Delhi 110092 PAN: AADCK-2478-G ..... ᮧितवादी/Respondent CO No. 80/DEL/2024 (A.Y.2015-16) In ITA No. 9500/DEL/2019 Krishna Kirpa Computer Industries P. Ltd., Shop No.18, Rishab IPEX Shopping Mall, 1st Floor, I.P Extension, Patparganj, Near Victor Public School, New Delhi 110092 PAN: AADCK-2478-G ...... अपीलाथᱮ/Appellant बनाम Vs. Deputy Commissioner of Income Tax, Circle-14(2), R. No. 334B, CR Building, IP Estate, New Delhi 110002 ..... ᮧितवादी/Respondent Assessee by : S/Shri Divyanshu Agarwal & Anubhav Rastogi, Advocates Department by : Shri Om Prakash, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 10/01/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 10/01/2025 2 ITA No. 9500/Del/2019 & CO 80/Del/2024 (AY 2015-16) आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-5, New Delhi (hereinafter referred to as 'the CIT(A)’) dated 30.09.2019, for assessment year 2015-16. The assessee has filed Cross Objections in appeal filed by the Revenue. 2. Shri Divyanshu Agarwal, appearing on behalf of the assessee submitted that appeal by Revenue is liable to be dismissed on account of lower tax effect. He furnished a copy of Tax Computation received by the assessee along with assessment order to show that the total demand as per the tax computation is Rs.57,09,181/- which is less than the monetary limit for filing of appeal by the Revenue before the Tribunal in terms of Circular No. 9/2014. 3. The ld. DR pointed that as per Form No. 36, the total demand is Rs.98,57,359/-. However, he fairly submitted that as per tax computation the demand is less than Rs.60 lakhs. 4. In view of the fact that tax effect involved in appeal as per Income Tax Computation Form provided to the assessee alongwith assessment order is less than Rs. 60 lakhs, appeal of the Revenue is liable to dismissed on account of low tax effect. We hold accordingly. 5. Liberty is granted to the Revenue to revive appeal, in case the addition is made on account of any exception provided in para 3.1 of Circular No. 5/2024 dated 15.03.2024. 3 ITA No. 9500/Del/2019 & CO 80/Del/2024 (AY 2015-16) 6. The ld. Counsel for the assessee made a statement at Bar, that since appeal of the Revenue is dismissed on account of low tax effect, he is not pressing cross objections and is withdrawing the same. Accordingly, the cross objection of the assessee is dismissed as withdrawn. 7. In the result, appeal of the Revenue and cross objection of the assessee are dismissed. Order pronounced in the open court on Friday the 10th day of January, 2025. Sd/- Sd/- (S RIFAUR RAHMAN) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 10/01/2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "