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Judgment
PER MADHUMITA ROY, JM:
The instant appeal filed by the Revenue is directed against the order dated 10.07.2019 of the Ld. Commissioner of Income-tax (Appeals)-29, New Delhi [hereinafter referred to as the Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the Assessment Order dated 17.12.2018 passed by the ACIT, Central Circle-28, New Delhi (hereinafter referred to as ‘the ld. AO’) under Section 143(3) of the Act for Assessment Year 2017-18.
The tax effect of the appeal preferred by the Revenue is claimed as Rs.82,06,5330/-, whereas it ought to have been Rs.20,38,885/- as per the computation given by the Ld. counsel for the assessee as reproduced below:-
| TAX EFFECT CALCULATION | |
| Particulars | Amount (in Rs.) |
| Addition made by the AO | 1,00,00,000/- |
Tax on addition made @ 18.5% (as per MAT) | 18,50,000/- |
| Surcharge @ 7% | 1,29,500/- |
| Education Cess @ 3% | 59,385/- |
| Total Tax Effect | 20,38,885/- |
The Ld. DR has not been able to controvert the tax effect or able to satisfy that it is coming under the purview of exceptional clause vide CBDT Circular No.09/2024 dated 17/09/2024 and clarification thereto and, hence, the appeal preferred by the Revenue is dismissed due to low tax effect.
In the result, the appeal filed by the Revenue is dismissed.