DEPUTY COMMISSIONER OF INCOME TAX, DELHI V. SPONGE SALES (INDIA) PRIVATE LIMITED, DELHI

ITA 3570/DEL/2024

AI Insights

The case involves the Deputy Commissioner of Income Tax, Delhi as the appellant and Sponge Sales (India) Private Limited as the respondent. The dispute arose from an assessment order for the Assessment Year 2021-22, where the assessee declared a total income of Rs. 1,98,82,860 but the assessing officer made an addition of Rs. 4,01,46,761. The assessee appealed to the National Faceless Appeal Centre (NFAC), which partly allowed the appeal. The revenue, dissatisfied with the NFAC's decision, appealed to the Income Tax Appellate Tribunal, Delhi. However, the tribunal dismissed the appeal due to the tax effect being below the threshold set by the CBDT circular.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 30415 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: ASHWINI KUMAR
• Keywords: Tax effect
• Section: 143(3); 142(1); 143(2)

Judgement Text

"1 INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH G: DELHI BEFORESHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No.3570/Del/2024 Assessment Year: 2021-22 Deputy Commissioner of Income Tax Delhi Vs. Sponge Sales (India) Private Limited Room No 225 E CR Building IP Estate New Delhi 110002 PAN NO: AAACS1697Q (Appellant) (Respondent) ORDER PER SUDHIR PAREEK, JM: The revenue preferred the captioned appeal, challenging the order passed by the National Faceless Appeal Centre, Delhi (in short “NFAC”) Delhi pertaining to Assessment year 2021-22 dated 19- Revenue by Shri Sahil Kumar Bansal, Sr. DR. Assessee by Sh. Ashwini Kumar, CA Date of hearing 26.03.2025 Date of pronouncement 26.03.2025 2 .12.2023 and arises out of the order dated 18.12.2022 passed under Section 143(3) read with section 144B of the Income Tax Act, 1961 (“The Act for short”). 3. The brief facts of the case are that the assessee is a limited company filed return of income for the A.Y. 2021-22 on 28-02- 2022 declaring total Income of Rs, 1,98,82,860/-. The case was selected for complete scrutiny and notices u/s 143(2) and 142(1) of the Act were issued. The assessing officer has completed the assessment by making the addition of Rs. 4,01,46,761/-. 4. Aggrieved the order of the Assessing Officer the assessee has preferred the appeal before the Ld. NFAC who vide order dated 19-12-2023 partly allowed the appeal, against which the revenue is in appeal before the tribunal. 5. We have heard both the parties and perused the records. 7. The grievance of the Revenue shows that the tax effect would be less than Rs.60 lacs, therefore, the present appeal filed by the Revenue is not maintainable in the light of the CBDT Circular No.09 of 2024 dated 17/09/2024. The appeal is accordingly dismissed. The revenue will be at liberty to get the appeal restored if tax effect found more that the prescribed limit. 3 8. In the result, the appeal filed by the revenue is accordingly dismissed. Order pronounced in the open court on 26/03/2025. Sd/- Sd/- (PRADIP KUMAR KEDIA) (SUDHIR PAREEK) ACCOUNTANT MEMBER JUDICIALMEMBER Dated: 26 March,2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 4 Sl. No. Particulars Date 1. Date of dictation of Tribunal Order: 2. Date on which the typed draft Tribunal order is placed before the Dictation Member: 3. Date on which the typed draft Tribunal Order is placed before the other Member: 4. Date on which the approved draft Tribunal Order comes to the Sr. PS/PS: 5. Date of which the fair order is placed before the Dictating Member for pronouncement: 6. Date on which the signed order comes back to the Sr. PS/PS: 7. Date on which the final Tribunal Order is uploaded by the Sr.PS/PS on official website: 8. Date on which the file goes to the Bench Clerk along with Tribunal Order. 9. Date of killing off the disposed of files on the judiSIS Portal of ITAT by the Bench Clerk: 10. Date on which file goes to the Supervisor (Judicial): 11. The date on which the file goes to the Asst. Registrar for endorsement of the order: 12. Date of dispatch of the order "