DCIT, PUNE V. ASHDAN DEVELOPERS PRIVATE LIMITED, PUNE

ITA 1822/PUN/2024

AI Insights

The case involves an appeal by the Revenue against Ashdan Developers Private Limited concerning an assessment order for the Assessment Year 2013-14. The appeal was directed against the order of the National Faceless Appeal Centre (NFAC), which had quashed a previous assessment order under sections 143(3) read with 263 of the Income-tax Act, 1961. The primary contention from the Revenue was the applicability of a previous ITAT order which had been contested before the High Court. However, the ITAT dismissed the Revenue's appeal due to the low tax effect, guided by the CBDT Circular which advises against filing appeals in cases where the tax effect is below Rs. 60 Lakhs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717500 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 30-08-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: KISHOR B. PHADKE
• Keywords: Tax effect; Assessment record
• Section: 143(3); 37(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1822/PUN/2024 Assessment Year : 2013-14 DCIT, Pune Vs. Ashdan Developers Private Limited 10th Floor, Kumar Business Centre, CTS No.29, Opp. Pune Central Bund Garden Road, pune-411001, Maharashtra PAN: AABCL4100E Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of Revenue pertaining to A.Y. 2013-14 is directed against the order dated 08.07.2024 of National Faceless Appeal Centre (NFAC), Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 28.12.2018 passed u/s.143(3) r.w.s263 of the Act. 2. Revenue has raised the following grounds of appeal: “1) The CIT(A) erred in quashing and setting aside the order u/s 143(3) r.w.s. 263 of the Act for the reason that the order u/s.263 of the Act is quashed by the Hon'ble ITAT ignoring the fact that the Hon'ble ITAT's order has been contested before the Hon'ble High Court and the same is at preadmission stage. 2) The CIT(A) erred in deciding the appellate proceedings in respect of order u/s 143(3) r.w.s 263 of the Act without waiting for the Appellant by : Shri Amol Khairnar Respondent by : Shri Kishor B. Phadke Date of hearing : 21.07.2025 Date of pronouncement : 14.08.2025 Printed from counselvise.com ITA No.1822/PUN/2024 Ashdan Developers Private Limited 2 conclusion of the judicial process in respect of the order u/s.263 of the Act from which the order under appeal emanated 3) The appellant craves to add, amend, alter or delete any of the above grounds of appeal during the course of appellate proceedings before the Hon'ble Tribunal.\" 3. At the outset, Ld. Counsel for the respondent-assessee submitted that appeal of the Revenue deserves to be dismissed on account of low tax effect by virtue of CBDT Circular No.09/2024 dated 17.09.2024 as the addition challenged by the Revenue only amounts to Rs.75,65,359/-. On the other hand, ld. Departmental Representative could not rebut this contention made by ld. Counsel for the assessee. 4. We have heard the rival contentions and perused the record placed before us. We observe that the assessee is a Private Limited Company assessed to tax for A.Y.2013-14. Thereafter, the assessment records were called for by ld. PCIT and order u/s.263 of the Act framed holding that the assessment order is erroneous and prejudicial to the interest of Revenue and directed the AO to frame the denovo assessment as per the direction given in the order u/s.263 of the Act dated 27.03.2018. On the other hand assessee assailed the order of ld.PCIT u/s.263 of the Act before this Tribunal and succeeded. This Tribunal vide order dated 16.12.2021 quashed the order passed by ld.PCIT u/s.263 of the Act. But in the meantime, assessment order u/s.143(3) r.w.s.263 of the Act already stood framed on 28.12.2018. 5. Before us, Revenue has raised following additional grounds of appeal : i. On the facts and the circumstances of the case and in law, the Ld.CIT(A) erred in not appreciating the fact that the ground against the addition made on account of salary paid to the employees u/s Printed from counselvise.com ITA No.1822/PUN/2024 Ashdan Developers Private Limited 3 37(1) of the Act, was not pressed by the assessee before the Hon'ble ITAT. ii. On the facts and the circumstances of the case and in law, the Ld.CIT(A) erred in holding that the Hon'ble ITAT order dated 16/12/2021 is applicable on the issue of addition made on account salary paid to the employees u/s 37(1) of the Act? ii. The appellant craves to add, amend, alter or delete the above ground of appeal during the course of appellate proceedings before the Hon'ble Tribunal.\" 6. From perusal of the above grounds and the facts in entirety, the only issue agitated by the Department is against the deletion of disallowance u/s.37(1) of the Act at Rs.75,65,359/-. The tax effect on the addition challenged before this Tribunal is below Rs.60.00 lakh. Eventhough ld.CIT(A) has deleted the addition made by the Assessing Officer on the wrong premise but the fact remains that ld.CIT(A) has deleted the addition. 7. The CBDT vide Circular No.09 of 2024 dated 17.09.2024 has increased the monetary limit for filing the appeal by the Revenue before the ITAT to Rs. 60 Lakhs. In the said circular, it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 60.00 lakh appeals should not be filed. Thus, taking note of CBDT Circular No. 09 of 2024 dated 17.09.2024 and considering the fact that the tax effect in the instant appeal is less than Rs. 60.00 lakh, the present appeal deserves to be dismissed as withdrawn / not maintainable. However, we make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for Printed from counselvise.com ITA No.1822/PUN/2024 Ashdan Developers Private Limited 4 recalling the order, if so advised. Accordingly, in the light of CBDT circular No. 09 of 2024 dated 17.09.2024, this appeal stands dismissed. 8. In the result, the appeal of the Revenue is dismissed. Order pronounced on this 14th day of August, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 14th August, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” ब\u0013च, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "