INCOME TAX OFFICER, WARD-2(3)(4), SURAT V. SILVER PALACE CO OPERATIVE HOUSING SERVICE SOCIETY LIMITED, SURAT

ITA 345/SRT/2024

AI Insights

The case involves an appeal by the Income Tax Officer against the order of the Commissioner of Income Tax (Appeals), which had deleted the additions made by the Assessing Officer under section 68 of the Income Tax Act, 1961, concerning cash credit amounting to Rs. 67,53,925 for the assessment year 2017-18. The Revenue's appeal was found to be not maintainable due to the tax effect being below Rs. 60 lakh, as per the recent CBDT circular. The court considered the submissions from both parties and decided to dismiss the appeal on the grounds of the low tax effect, while also allowing for future reconsideration if new exceptional circumstances arise.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 106890 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JAIN
• Assessee Lawyers: RUSHI PAREKH
• Keywords: Tax effect
• Section: 144; 68

Judgement Text

"आयकर अपीलीय अिधकरण, सूरत Ɋायपीठ, सूरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 345/SRT/2024 (AY 2017-18) (Physical court hearing) Income Tax Officer, Ward-2(3)(4), Surat, Room No. 613, 6th Floor, AAyakar Bhawan, Majura Gate, Surat-395 001 बनाम Vs Silver Palace Co-operative Housing Service Society Ltd., Kapodra to Utran Bi, AT Utran Surat-394 105 [PAN : AAOAS 4849 N] अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Rushi Parekh, CA राजˢ की ओर से /Revenue by Shri Mukesh Jain, Sr-DR अपील पंजीकरण/Appeal instituted on 01.04.2024 सुनवाई की तारीख/Date of hearing 30.12.2024 उद ्घोषणा की तारीख/Date of pronouncement 30.12.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by Revenue is directed against the order of National Faceless Appeal Centre, Delhi/Commissioner of Income tax (Appeals) [for short to as “Ld.CIT(A)] dated 01.02.2024 for assessment year (AY) 2017-18. which in turn arises out of assessment order passed by Assessing Officer under section 144 of the Income-tax Act, 1961 (for short, ‘the Act’) dated 11.10.2019. 2. On perusal of record, we find that Assessing Officer made addition of Rs.67,53,925/- on account of cash credit under section 68 of the Act, on appeal before ld.CIT(A), the additions were deleted. Aggrieved by the order of ld CIT(A), the revenue has filed present appeal. We find that tax effect involved in the present appeal filed by the Revenue is below the threshold limit of tax effect Rs.60.00 lacs, for filing appeal before Tribunal, As per latest Circular No. ITA No.345/SRT/2024 (A.Y.17-18) Silver Palace Co-op Housing Service Society Ltd. 2 09/2024 dated 17.09.2024 issued by Central Board of Direct Tax (CBDT) the tax limit is enhanced to Rs.60.00 lacs for filing of appeals by the Department before Income Tax Appellate Tribunal. Such fact was confronted with learned Senior Departmental Representative (Ld. Sr-DR) for the Revenue. Ongoing through” Column of Form-36” would submit that Assessing Officer has mentioned tax effect of Rs.52,17,407/-, which may be accepted as correct. 3. The Ld. Authorized Representative (Ld.AR) for the assessee submits that appeal of the revenue is not maintainable due to low tax effect. The tax effect in the present appeal is only of Rs. 52,17407/-, which admittedly the tax effect will be around Rs.40.00 lacs (Approx.) and admittedly below Rs.60.00 lakh. 4. We have considered the submissions of both the parties and considering the fact that tax effect involved in the present appeal on the issue raised before us, is less than Rs.60 lakh, thus the appeal of Revenue is not maintainable and dismiss due to low tax effect, however, the Assessing Officer is given liberty to file appropriate application before Tribunal in case, at the later stage it is discover the issue involved in covered by any exceptional clause or any circular issue by CBDT. 5. In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on 30/12/2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) लेखा सद˟/Accountant Member Ɋाियक सद˟/Judicial Member सूरत / Surat Dated: 30/12/2024 Dkp Outsourcing Sr.P.S ITA No.345/SRT/2024 (A.Y.17-18) Silver Palace Co-op Housing Service Society Ltd. 3 आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to :  अपीलाथŎ/ The Appellant  ŮȑथŎ/ The Respondent  आयकर आयुƅ/ CIT  आयकर आयुƅ (अपील)/ The CIT(A)  िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, सूरत/ DR, ITAT, SURAT  गाडŊ फाईल/ Guard File By order/आदेश से, सहायक पंजीकार आयकर अपीलीय अिधकरण, सूरत "