ITO, INCOME TAX DEPARTMENT V. HUMOLE DIAGNOSTIC PVT LTD, DELHI

ITA 1122/DEL/2024

AI Insights

The case involves an appeal by the Income Tax Department against Humole Diagnostic Pvt. Ltd., concerning an assessment order for the year 2021-22. The Revenue challenged the order of the National Faceless Appeal Centre (NFAC), which had arisen from an earlier assessment. The primary contention was the tax effect from a disputed addition of Rs.2,26,46,850, which was calculated to be below the threshold of Rs. 60 lakhs set by the Central Board of Direct Taxes (CBDT) for filing appeals. The Revenue did not dispute the calculation provided by the assessee, which led to the dismissal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787689 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2021-2022
• Appeal Filed On: 11-03-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: RUCHESH SINHA
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, B: NEW DELHI BEFORE YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.- 1122/Del/2024 [Assessment Year: 2021-22] ITO, Income Tax Department, Ward 11(3), Room No. 410A, CR Building IP Estate, New Delhi 110002. Vs Humole Diagnostic Pvt. Ltd., Third Floor, E-59, Flat No.-2, Pandav Nagar Patparganj, Delhi-110091. PAN- AAECH3274N Revenue Assessee Revenue by Shri Rajesh Kumar Dhanesta, Sr. DR Assessee by Shri Ruchesh Sinha, Adv. Date of Hearing 19.11.2025 Date of Pronouncement 20.11.2025 ORDER PER BRAJESH KUMAR SINGH, AM, This appeal by the Revenue is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 31.01.2024 [hereinafter referred to as the ‘Ld. CIT(A)’] arising out of the assessment order dated 21.12.2022 passed under Section 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as Printed from counselvise.com ITA No.- 1122/Del/2024 Humole DiagnosƟc Pvt. Ltd. 2 ‘the Act’) by the Assessment Unit, Income Tax Department, (hereinafter referred to as the ‘Ld. AO’) pertaining to A.Y. 2021-22. 2. At the outset of hearing, the Ld. Counsel for the assessee submitted that the present appeal filed by the Revenue is not maintainable as the tax effect involved in the addition is below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals before the Tribunal. The Ld. Counsel furnished a computation of tax effect arising from the disputed addition of Rs.2,26,46,850/-, which is reproduced as under: S. No. Total addition made Tax rate (U/s 115BAA) Total tax amount 1. 2,26,46,850/- 22% 57,00,212/- 2. Add: surcharge @ 10% 10% 3. Add: 4% health and education cess 4% 4. Effective rate 25.17 2.1 The above tax effect was not disputed by the Ld. SR. DR and submitted that the tax effect as mentioned in column (4) at Form 36 filed by the Department was Rs. 56,99,760/- 3. We have heard both the parties and perused the material available on record. The grievance of the Revenue shows that the tax effect would be less than Rs.60 Printed from counselvise.com ITA No.- 1122/Del/2024 Humole DiagnosƟc Pvt. Ltd. 3 lacs, therefore, the present appeal filed by the Revenue is not admissible in the light of the CBDT Circular No. 05/2024 dated 15.03.2024 and Circular No. 09 of 2024 dated 17/09/2024. As per the said Circular, the Revenue shall not file an appeal before the Tribunal where the tax effect does not exceed Rs. 60 lakhs, and this appeal is not maintainable. 4. In the result, the appeal filed by the Revenue is dismissed on account of low tax effect. However, Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration of this appeal if it is found that appeal of Revenue is covered by any of the exception as laid down in the aforesaid CBDT Circulars. Order pronounced in the open court on 20th NOVEMBER, 2025. Sd/- Sd/- [YOGESH KUMAR US] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated- 20.11.2025. Pooja. Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi, Printed from counselvise.com "