DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), GURGAON, GURGAON V. MEDIA AGILITY INDIA PRIVATE LIMITED, GURGAON

ITA 6398/DEL/2025

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax (DCIT), Circle-1(1), Gurgaon against Media Agility India Private Limited, concerning the assessment year 2016-17. The appeal was directed against the order of the National Faceless Appeal Centre (NFAC), Delhi, which had arisen from an earlier assessment order under section 143(3) of the Income Tax Act, 1961, passed by the Assistant Commissioner of Income Tax (ACIT), Circle-2(1), Gurgaon. The primary contention in the appeal was the disallowance of certain expenses under various heads such as traveling, miscellaneous, rent & royalty, and advertisement and promotion. However, the Tribunal dismissed the appeal due to the low tax effect, adhering to the guidelines set by the CBDT Circular.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838167 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 09-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T M SHIV KUMAR
• Assessee Lawyers: JITENDER SINGH
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

"P a g e | 1 ITA No.6398/Del/2025 Media Agility India Pvt. ltd. (AY:2016-17) IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.6398/Del/2025 (Assessment Year: 2016-17) DCIT, Circle-1(1) 5th Floor, HSHDC Building, Phase-5 Udyog Vihar Gurgaon, Haryana - 120016 Vs. Media Agility India Private Limited, SCO-43, Old Judicial Complex, Sector-15, Gurgaon, Haryana - 122000 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AAGCM9049L Appellant .. Respondent Appellant by : Sh. TM Shivkumar, Adv. Ms. Sanjana, Adv. Sh. Laxmi Pundir, Adv. Respondent by : Sh. Jitender Singh, CIT, DR Date of Hearing 11.02.2026 Date of Pronouncement 18.02.2026 O R D E R PER ANUBHAV SHARMA, JM: This appeal preferred by the revenue against the order dated 27.12.2024 of Ld. National Faceless Appeal Centre (NFAC), Delhi, (hereinafter referred Printed from counselvise.com P a g e | 2 ITA No.6398/Del/2025 Media Agility India Pvt. ltd. (AY:2016-17) to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN & Order No:ITBA/NFAC/S/250/2024-25/1071632769(1)arising out of the assessment order dated 30.12.2018 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by ACIT, Circle-2(1), Gurgaon,for AY: 2016- 17. 2. At the time of hearing ld. AR has pointed out that the appeal of the revenue suffers from low tax effect. 3. We find that in the Form 36 department has shown tax effect involved at Rs.65,69,597/-.However, on perusal of the impugned order and the ground raised it comes up that the issue only pertains to 20% of the expenses under the head travelling, miscellaneous, rent & royalty and advertisement and promotion aggregating to an amount of Rs.26,59,831/-. Thus, total tax effect to Rs.8,21,887/- while it appears that tax effect in the Form 36 has been shown on the basis of complete amounts involved in the respective heads of addition. Printed from counselvise.com P a g e | 3 ITA No.6398/Del/2025 Media Agility India Pvt. ltd. (AY:2016-17) 4. In the light of aforesaid we are of considered view that the appeal of the department suffers from low tax effect and is covered by the Circular of CBDT No. 09/2024 dated 17.09.2024. 5. Accordingly, the appeal is dismissed. Order pronounced in the open court on 18.02.2026 Sd/- (Manish Agarwal) Sd/- (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 18.02.2026 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "