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Judgment
PER SATBEER SINGH GODARA, JM
This Revenue’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1080923464(1), dated 19.09.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
The Revenue’s sole substantive grievance raised herein seeks to reverse the CIT(A)/NFAC’s action deleting section 68 unexplained cash credits addition of Rs.1,42,50,000/- made in the assessee’s hands in assessment order date 31.12.2019.
That being the case, we sought to ascertain the tax effect involved herein. The Revenue’s case before us is that since the learned Assessing Officer had invoked section 115BBE of the Act applying tax @ 60%, the same comes to very much more than the minimum tax effect of Rs. 60 lakhs in the CBDT’s landmark Circular No. 9/2024, dated 17th September, 2024.
It could hardly dispute that case law S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) has already settled the issue that the impugned statutory provision of section 115BBE gets attracted qua for the transactions done on or after 01.04.2017. We thus conclude in this factual backdrop that the tax effect comes to be less than that prescribed of Rs.60 lakhs in the aforesaid CBDT’s circular. This Revenue’s sole ground fails in very terms.
This Revenue’s appeal is dismissed.