ACIT, Jalandhar V. M/s. Sidhant Deposits & Advances P.Ltd., Jalandhart

ITSSA 4/ASR/2008

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax, Range-IV, Jalandhar against M/s Sidhant Deposits & Advances (P) Ltd. The appeal was against the order of the Commissioner of Income Tax (Appeals), Jalandhar dated 28.02.2005 concerning the block period from 01.04.1988 to 23.12.1998. The primary contention was the tax effect amounting to Rs. 31,45,252, which was computed to a tax liability of Rs. 18,67,151 at 30%. However, the appeal was dismissed on the grounds that the tax effect was below the threshold limit of Rs. 50,00,000 set by the CBDT Circular 17/2019.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114373 (ITAT-AMRITSAR)
• Duration Of Justice: 15 year(s) 9 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 20-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 17-09-2023
• Assessment Year: misc
• Appeal Filed On: 10-09-2008
• Other Referred Cases: DCIT v. Keshav Power Ltd.
• Laws Referred To: CBDT Circular 17/2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (VIRTUAL COURT) BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T. (SS). A. No. 04/Asr/2008 Block Period: 01.04.1988 to 23.12.1998 The Asstt. CIT, Range-IV, Jalandhar (Appellant) V. M/s Sidhant Deposits & Advances (P) Ltd., 7/15, Mool Raj Road, Jalandhar Cantt. [PAN: 29-606-CV-5528] (Respondent) Appellant by Sh. J. S. Bhasin, Adv. Respondent by Smt. Balvinder Kaur, CIT DR Date of Hearing : 18.09.2023 Date of Pronouncement : 21.09.2023 ORDER Per Dr. M. L. Meena, AM: The appeal has been filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals), Jalandhar dated 28.02.2005 in respect of Block Period: 01.04.1988 to 23.12.1998. IT (SS)A No. 04/Asr/2008 Asstt. CIT v. Sidhant Deposits & Advances (P) Ltd. 2 2. At the outset, the Ld. Counsel for the assesse submitted that the case is covered within the threshold limit prescribed for filing an appeal by the department before the Hon’ble Income Tax Appellate Tribunal vide CBDT Circular 17/2019 dated 08/08/2019, because the amount of income disputed is Rs. 31,45,252/- on which the tax liability @30% is computed to Rs.18,67,151/-. 3. The Ld. DR has not controverted the computation chart filed by the Ld AR and he has no objection to the request of the assesse that since the tax effect in the said matter is below the prescribed threshold, the appeal of the department may be dismissed. 4. On low tax effect, in the case of “DCIT v. Keshav Power Ltd.”, (SLP/Civil No. 21497/2019) the Hon’ble Apex Court has dismissed the Revenue appeal vide order dated 16th August, 2019 considering the revised monetary limits 2.00 crore for filing appeal before it, as per the aforesaid circular. IT (SS)A No. 04/Asr/2008 Asstt. CIT v. Sidhant Deposits & Advances (P) Ltd. 3 5. In view of above facts, we hold that the appeal of the department, being involving tax effect of less than Rs.50,00,000/- is hereby dismissed as not maintainable. Order pronounced in the open court on 21.09.2023 Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr./P.S.* Copy of the order forwarded to: (1) The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By Order