ITO, WARD- 2(1), NOIDA V. KRISHNA AGGARWAL, G B NAGAR

MA 88/DEL/2019

AI Insights

The case involves a Miscellaneous Application by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT) which had dismissed an appeal due to the low tax effect, following CBDT Circular No.03/2018. The Revenue contended that the case should be considered under the exceptional clause of the Circular, which pertains to challenges against the constitutional validity of provisions. However, the Revenue did not provide sufficient material to substantiate that the case met the criteria for the exceptional clause. Consequently, the ITAT dismissed the MA, upholding the original decision to dismiss the appeal based on the low tax effect.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121436 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 27-04-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 05-02-2019
• Laws Referred To: CBDT Circular No.03/2018
• 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.88/Del/2019 (Arising out of ITA No.3497/Del/2018) (for Assessment Year 2009-10) ITO Ward – 2(1), Noida PAN No. AFHPA 3714 P Vs. Krishna Aggarwal 265-A, Ganga Apartments, Sector – 29, Noida UP (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 11.10.2018 in ITA No.3497/Del/2018 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 3 challenged. It is therefore the contention of the Revenue that the order dated 11.10.2018 be recalled and the appeal be decided on merits. 3. 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 of CBDT Circular. 4 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. Before us, Revenue has not demonstrated as to how the case of the assessee is covered under exceptional clause nor has it placed any material to demonstrate about the challenge of the constitutional validity of the provision. In such a situation, I find no merit in MA of the Revenue. Thus the MA of Revenue is dismissed. 5. 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