ITO, NEW DELHI V. M/S. RAGHVENDER SHANKAR FINANCE & INVESTMENT CO. PVT. LTD., NEW DELHI

MA 152/DEL/2021

AI Insights

The case involves the Income Tax Department (Revenue) and Raghvender Shankar Finance & Investment Co. Pvt. Ltd. concerning an appeal for the Assessment Year 2005-06. Initially, the Revenue's appeal was dismissed by the Tribunal due to the low tax effect. However, following the Revenue's M.A. to recall the Tribunal's order, it was found that the tax effect was indeed above the threshold at the time of the original decision, leading to the restoration of the appeal. Subsequently, due to a revision in the tax effect limit to INR 60 Lakhs as per a later CBDT Circular, the appeal was dismissed again on the grounds of low tax effect.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711227 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2005-2006
• Laws Referred To: CBDT Circular No.17/2019 dated 08.08.2019, CBDT Circular No.09/2024 dated 17.09.2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Keywords: Tax effect

Judgement Text

"MA-152/Del/2021 & ITA No.5552/Del/2015 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C-FRIDAY” BENCH: NEW DELHI BEFORE SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER M.A.No.152/Del/2021 [In ITA No.5552/Del/2015] [Assessment Year : 2005-06] ITO, Ward-20(4), Room No.209, 2nd Floor, C.R. Building, I.P.Estate, New Delhi vs Raghvender Shankar Finance & Investment Co.Pvt.Ltd., AG-5, Shalimar Bagh, New Delhi-110052. PAN-AAACR3760P APPELLANT RESPONDENT ITA No.5552/Del/2015 [Assessment Year : 2005-06] ITO, Ward-20(4), Room No.209, 2nd Floor, C.R. Building, I.P.Estate, New Delhi vs Raghvender Shankar Finance & Investment Co.Pvt.Ltd., AG-5, Shalimar Bagh, New Delhi-110052. PAN-AAACR3760P APPELLANT RESPONDENT Revenue by Shri Manoj Kumar, Sr.DR Assessee by None Date of Hearing 25.07.2025 Date of Pronouncement 25.07.2025 ORDER PER MANISH AGARWAL, AM : The captioned Miscellaneous application is filed by the Revenue with a prayer to recall the order of the Tribunal dated 08.04.2021 in ITA No. 5552/Del/2015 for the Assessment Year 2005-06 alongwith appeal filed by the Revenue. No one attended the proceeding on behalf of the assessee. Printed from counselvise.com MA-152/Del/2021 & ITA No.5552/Del/2015 Page | 2 M.A.No.152/Del/2021 [In ITA No.5552/Del/2015] [Assessment Year : 2005-06] 2. The Ld.Sr. DR for the Revenue has submitted that the appeal of the Revenue was dismissed by the Tribunal on account of low tax effect. The Tribunal shall give the liberty to the assessee to revise the appeal if tax effect was found incorrect. 3. Ld.AR for the assessee submitted that the tax effect involved in the appeal was above INR 50 Lakhs in terms of CBDT Circular No.17/2019 dated 08.08.2019 wherein tax effect limit was revised upto INR 50 Lakhs. 4. We have heard the contention of Ld. Sr. DR for the Revenue and perused the material available on record. From the perusal of the records, it was seen that tax effect in this case was more than INR 50 Lakhs when the appeal of the assessee was decided, since at that time, CBDT Circular No.17/2019 dated 08.08.2019 was in operation according to which the tax effect in the case of the Revenue’s appeal should be more than INR 50 Lakhs and therefore, the M.A. filed by the Revenue is allowed and the appeal of the Revenue is restored to its original number. ITA No.5552/Del/2015 [Assessment Year : 2005-06] 5. During the course of hearing, it is seen that the tax effect in the present case is below INR 60 Lakhs as the mandatory limit for filing the appeal of the Revenue has been revised in terms of CBDT Circular No.09/2024 dated 17.09.2024 wherein the tax effect limits were increased to INR 60 Lakhs before the Tribunal. Therefore, the appeal of the Revenue is dismissed being low tax effect in view of Printed from counselvise.com MA-152/Del/2021 & ITA No.5552/Del/2015 Page | 3 the CBDT Circular No.09/2024 dated 17.09.2024, the tax limit is INR 60 Lakhs. 6. In the result, M.A. filed by the Revenue is allowed and appeal of the Revenue is dismissed. Order pronounced in the open Court on 25.07.2025. Sd/- Sd/- (YOGESH KUMAR U.S) JUDICIAL MEMBER Date:- 30.07.2025 *Amit Kumar, Sr.P.S* (MANISH AGARWAL) ACCOUNTANT MEMBER Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT 6. Guard File ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "