DEPUTY COMMISSIONER OF INCOME TAX, GURGAON V. JAGDISH KUMAR, GURGAON

ITA 5420/DEL/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income-tax (Appeals), which was itself an appeal against the order passed by the ACIT under section 143(3) of the Income Tax Act, 1961. The Revenue's appeal was dismissed on the grounds of the tax effect being below the newly set threshold of Rs. 60 lakhs, as stipulated by the CBDT Circulars dated 15.3.24 and 17.9.24. The rectification order dated 17.09.2019 played a crucial role in reducing the tax effect to below the threshold, leading to the dismissal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788769 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 25-11-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: GAURAV JAIN; TARUN CHANANA
• Keywords: Tax effect; Rectification of order
• Section: 143(3); 154

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : C : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER ITA No.5420/Del/2024 Assessment Year: 2016-17 DCIT, Circle-1(1), Gurgaon. Vs Jagdish Kumar, Flat No.1001, Block-C-2, Uniworld City, Sector-30/41, Gurgaon. PAN: AALPK4449E (Appellant) (Respondent) Assessee by : Shri Gaurav Jain, Advocate & Shri Tarun Chanana, Advocate Revenue by : Shri Om Prakash, Sr.DR Date of Hearing : 18.11.2025 Date of Pronouncement : 28.11.2025 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the Revenue against the order dated 09.08.2024 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeals No. CIT(A), Gurgaon-1/10889/2018-19 arising out of the appeal before it against the order dated 25.12.2018 passed u/s 143(3) of the Income Tax Act, Printed from counselvise.com ITA No.5420/Del/2024 2 1961 (hereinafter referred to as ‘the Act’) by the ACIT, Circle-2(1), Gurgaon (hereinafter referred to as the Ld. AO). 2. At the time of hearing, the ld. counsel has pointed out that the appeal of the Revenue is no more maintainable as, after the rectification order dated 17.09.2019, the total tax effect left is Rs.39,03,527/-. 3. We have perused the rectification order u/s 154 of the Act dated 17.09.2019 and that substantiates the plea of the ld. AR which could not be rebutted by the ld. DR. 4. Hence, the instant appeal filed by the Revenue, admittedly, is left with a tax effect of below Rs.60 lakhs and the same falls into the category of low tax effect appeals after the enhanced monetary limits of Rs. 60 lacs, for appeals to be filed by the department before this Tribunal, laid by the CBDT vide Circular Nos. 5/2024 dated 15.3.24 and 09/2024 dated 17th September, 2024. However, if the Revenue at any point of time finds that the tax effect involved in the grounds of the Revenue is more than Rs.60 lakhs or that the same is falling under the exceptions provided in the said Circular, the Revenue may move necessary application for recall of this order. 3. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 28.11.2025. Sd/- Sd/- (KRINWANT SAHAY) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Printed from counselvise.com ITA No.5420/Del/2024 3 Dated: 28th November, 2025. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi Printed from counselvise.com "