ITO, Ward- 1(1), Noida V. Amit Agarwal, Noida

MA 592/DEL/2019

AI Insights

The case involves a Miscellaneous Application filed by the Revenue against Amit Agarwal concerning an appeal dismissed by the ITAT due to low tax effect, as per CBDT Circular No.03/2018. The Revenue argued that the case should be reconsidered under the exceptional clause of the Circular, claiming a challenge to the constitutional validity of a provision. However, the court found that the Revenue did not provide sufficient material to support this claim, leading to the dismissal of the MA.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121435 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 15-06-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 03-07-2019
• Laws Referred To: CBDT Circular No.03/2018 dated 11.07.2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER MA No.592/Del/2019 (Arising out of ITA No.7822/Del/2017) (for Assessment Year 2009-10) ITO Ward – 1(1), Noida PAN No. AFHPA 0412 L Vs. Amit Agarwal, Flat No.265 A, Ganga Apartment, Sector-29 Noida (APPELLANT) (RESPONDENT) Assessee by Shri Amit Ranjan, Ms. Alka Yadav, Shri Prabhjeet Singh, C.A. Revenue by Shri Kanv Bali, Sr. D.R. Date of hearing: 16.06.2023 Date of Pronouncement: 16.06.2023 PER ANIL CHATURVEDI, AM : The present Miscellaneous Application (MA) is filed by the Revenue in respect of the order of Tribunal dated 20.02.2019 in ITA No.7822/Del/2017 for A.Y. 2009-10. 2. The grievance of the Revenue is that the Hon’ble ITAT has dismissed the appeal filed by department on the basis of CBDT Circular No.03/2018 dated 11.07.2018. It is the contention of the Revenue that though the tax effect in case is below the limit prescribed in the aforesaid CBDT Circular but the case is covered under exceptional clause as mentioned at Para 10 of the Circular as the constitutional validity of the provision in the act has been Page 2 of 4 challenged. It is therefore the contention of the Revenue that the order dated 20.02.2019 be recalled and decided on merits. 3. Learned DR placed on record a factual report being the covering letter from Addl. CIT addressed to office of Pr. CIT, Noida F. No. Pr. CIT/Noida/ITO(Tech)/Amit..Aggarwal/2022-23/7990.dated 23 rd Feb 2023. 4. Learned AR on the other hand strongly opposed the plea of the Revenue for recalling of the order and he submitted that Revenue has not placed any material on record to demonstrate that the case of the assessee is covered under exceptional clause. 5. I have heard the rival submissions and perused the material available on record. It is the submissions of the Revenue that though the appeal of the Revenue was dismissed on ground of low tax effect by following the CBDT Circular No.3/2018 dated 11.07.2018 but the case is covered under exceptional clause as mentioned at para 10 of the Circular. I find no merit in the aforesaid contention of the Revenue more so as the letter of Addl. CIT, Noida which is placed on record by Learned DR also reveals that in that letter Addl. CIT states that the issue per se does not qualify under exception 10(a) as mis- appreciation of facts and incorrect application of law by the CIT(A) cannot bring the matter under “constitutional validity of a provision under challenge”. Before me, Revenue has not demonstrated as to how the case of the assessee is covered under exceptional clause of CBDT Circular nor has placed any material to demonstrate about the challenge of the constitutional validity of the provision. In such a Page 3 of 4 situation, I find no merit in Misc. Application of the Revenue. Thus the MA of Revenue is dismissed. 6. In the result, MA of the Revenue is dismissed. Order pronounced in the open court on 16.06.2023 Sd/- (ANIL CHATURVEDI) ACCOUNTANT MEMBER Date:- 16.06.2023 PY* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI