THE INCOME TAX OFFICER(EXEMPTION), DEHRADUN V. M/S. SHRI SATISH CHANDRA EDUCATIONAL SOCIETY, KASHIPUR

MA 2/DDN/2023

AI Insights

The case involves a Miscellaneous Application (M.A No. 2/Del/2023) filed by the Income Tax Officer (Exemption) against Shri Satish Chandra Educational Society concerning an earlier Tribunal decision (ITA No. 23/DDN/2020) which dismissed the Revenue's appeal due to low tax effect. The Revenue argued that the appeal should be reconsidered as it involved the constitutional validity of Section 13(9) of the Act, an exception noted in the CBDT Circular. However, the Tribunal held that the appeal did not meet the criteria for exceptions under the Circular and reaffirmed its decision based on the low tax effect guideline, dismissing the M.A.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786402 (ITAT-DEHRADUN)
• Duration Of Justice: 2 year(s) 6 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-11-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 01-05-2023
• Laws Referred To: CBDT Circular 3/202018 dated 11/07/2018 as amended by the Board . No. 279/Misc. 142/2007-ITJ (Pt) dated 20/08/2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A. S. RANA
• Keywords: Tax effect

Judgement Text

" 1 M.A No. 2/Del/2023 ITO (E) Vs. Sh. Satish Chandra Educational Society IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘ ‘SMC’ (Dehradun)’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER M. A NO. 2/DDN/2023(A.Y 2016-17 in in ITA No.23/DDN/2020) The Income Tax officer (Exemption), Aayakar Bhawan, 13A, Subhash Road, Dehradun, Uttarakhand, 248001, (APPELLANT) vs M/s Shri Satish Chandra Educational Society, Kundeshwari Road, KuanKhera, Kashipur, Uttarakhand PAN No. AAGAS0624K (RESPONDENT)) Applicant by Sh. S. C. Arawal,CA Respondent by Sh. A. S. Rana, Sr. DR ORDER PER YOGESH KUMAR U.S., JUDICIAL MEMBER: The present Miscellaneous Application is filed in respect of the order dated 16/12/2022 passed by the Tribunal in ITA No. 23/DDN/2020 for Assessment Year 2016-17. 2. The Ld. Department's Representative submitted that the Tribunal while dismissing the Appeal in ITA No. 23/DDN/2020, only relied on the fact of low tax effect involved in the Appeal without taking into account of the exceptions mentioned in Para 10(a) of the CBDT Circular 3/202018 dated 11/07/2018 as amended by the Board’s Letter F. No. 279/Misc. 142/2007-ITJ (Pt) dated 20/08/2018. The Ld. Department's Representative further submitted that,‘the Date of Hearing 13.11.2025 Date of Pronouncement 19.11.2025 Printed from counselvise.com 2 M.A No. 2/Del/2023 ITO (E) Vs. Sh. Satish Chandra Educational Society Revenue has challenged the constitutional validity of Section 13(9) of the Act, which fell under the exception clause’. Thus, sought for allowing the Appeal. 3. Per contra, the Ld. Assessee's Representative submitted that the present M.A is not maintainable and deserves to be dismissed as the Tribunal has dismissed the Appeal of the Revenue on account of low tax effect by following the CBDT Guidelines and the case of the Assessee does not fall in any of the exceptions mentioned in the Circular. Thus, sought for dismissal of the M.A. 4. We have heard both the parties and perused the material available on record. The contention of the Revenue is that the issue involved in the Appeal fell under the exception clause as the constitutional validity of Section 13(9) of the Act was under challenged and the Tribunal has only looked into tax effect involved in the Appeal. Admittedly the tax effect involved in the Appeal filed by the Assessee is less than 50 lacs and the Appeal is not maintainable as per the CBDT Circular. The Revenue cannot challenge the Constitutional validity of any of the provisions of the Actbefore the Tribunal as the Tribunal has power to decide the Constitutional validity of any of the provisions of the Act.Therefore, the exceptions mentioned in Para 10(a) of the CBDT Circular 3/202018 dated 11/07/2018 as amended by the Board’s Letter F. No. 279/Misc. 142/2007-ITJ (Pt) dated 20/08/2018 is not Printed from counselvise.com 3 M.A No. 2/Del/2023 ITO (E) Vs. Sh. Satish Chandra Educational Society applicable to the case in hand. Therefore, we find no merits in the contention of the Ld. Department's Representative, accordingly, M.A filed by the Revenue is dismissed. Order pronounced in the open court on 19/11/2025. Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMEBR Dated: 19/11/2025 R.N, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "