DCIT, CIRCLE - 19(1), DELHI V. PURE DEPARTMENTAL STORE PVT. LTD., DELHI

ITA 4211/DEL/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which was passed under section 250 of the Income Tax Act, 1961. The appeal was related to the assessment order for the year 2017-18, which included additions under sections 69C and 68 of the Act. The Revenue challenged these additions, which were taxed under section 115BBE at a high rate. However, the appeal was dismissed due to the low tax effect, as per the recent CBDT circular, and the specific application of section 115BBE was also questioned based on a precedent set by the Madras High Court.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773730 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 12-09-2024
• Other Referred Cases: SMILE Microfinance Ltd. v. ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: VED JAIN; UMA UPADHYAY
• Keywords: Condonation of delay; Reasonable cause; Tax effect
• Section: 143(3); 69C

Judgement Text

"ITA No.4211/Del/2024 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “A” BENCH: NEW DELHI BEFORE SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.4211/Del/2024 [Assessment Year : 2017-18] DCIT, Circle-19(1), Delhi vs Pure Departmental Store Pvt.Ltd., RR-11, 2nd Floor, Mianwali Nagar, Paschim Vihar, Delhi-110087. PAN-AAGCP6905Q APPELLANT RESPONDENT Revenue by Shri Ajay Kumar Arora, Sr.DR Assessee by Shri Ved Jain, Adv. & Ms. Uma Upadhyay, CA Date of Hearing 07.07.2025 Date of Pronouncement 26.09.2025 ORDER PER MANISH AGARWAL, AM : This appeal is filed by the Revenue against the order dated 01.07.2024 by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld.CIT(A)”] in Appeal No. CIT(A), Delhi-4/10701/2019-20 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 29.12.2019 passed u/s 143(3) of the Act pertaining to Assessment Year 2017-18. 2. This appeal is filed delayed by 13 days and an application for condonation of delay was filed wherein it is stated by the AO that due to time barring penalty and re-opening of cases u/s 148, the appeal could not be filed within time and delay was of only 13 days. Printed from counselvise.com ITA No.4211/Del/2024 Page | 2 It is thus requested that delay be condoned and appeal be admitted for adjudication. 3. On the other hand, Ld.AR for the assessee objected to the condonation of delay. 4. Heard both the parties. Considering the facts stated by AO being engaged in time barring matters, we find that there is reasonable cause in filing the appeal delayed. Therefore, the delay is condoned and appeal is admitted for adjudication. 5. Heard both parties and perused the material available on record. In the instant appeal filed by the Revenue is having total tax effect of INR 69,64,821/- on the additions challenged before us of INR 90,15,950/-. The AO made addition of INR 83,59,950/- u/s 69C of the Act and further addition of INR 6,56,000/- was made u/s 68 and invoked the provision of section 115BBE of the Act and charged tax @ 60% on such additions. Accordingly tax effect was computed at INR 69,64,821/-. 6. That being the case we sought to verify the total tax effect involved in the Revenue’s instant appeal. Ld. Sr. DR, submits that the ld. AO has computed the same at Rs. 69,64,821/-. However, we find no merit in the above computation, once Hon’ble Madras High Court in the case of SMILE Microfinance Ltd. v. ACIT in WP(MD) No. 2078 of 2020 & 1742 of 2020 dated 19.11.2024 (Mad.) has already settled the issue that Section 115BBE applies on Printed from counselvise.com ITA No.4211/Del/2024 Page | 3 transactions on or after 01.04.2017 only. We thus, conclude that going by the consequential tax effect computation the Revenue’s instant appeal is hit by the CBDT Circular No. 09 of 2024 dated 17.09.2024 on account of low tax effect, as per the normal provisions. Revenue’s instant appeal is dismissed. Revenue is at liberty to move application if the case is fallen under any exception. 7. In the result, appeal of the Revenue is dismissed. Order pronounced in the open Court on 26.09.2025. Sd/- Sd/- (YOGESH KUMAR U.S) JUDICIAL MEMBER Date:- 26.09.2025 *Amit Kumar, Sr.P.S* (MANISH AGARWAL) ACCOUNTANT MEMBER Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT 6. Guard File ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "