Case Number: ITA No.108/Del/2021
Assessment Year: 2011-12
Decision Date: 2021-09-27
The Income Tax Appellate Tribunal (ITAT) Delhi Bench dealt with a tax appeal by the ACIT Circle-58(1), Delhi against CA Cooperative Thrift & Credit Society Limited. The primary issue in this appeal was the tax effect amounting to Rs. 689,300, which was below the threshold set by CBDT Circular No. 17/2019 dated 08.08.2019, thereby questioning the maintainability of the appeal.
Presided over by Sh. N. K. Billaiya, Accountant Member, the tribunal noted that the appeal’s tax effect did not meet the monetary threshold required for it to be heard, following the guidelines of the aforementioned CBDT circular. This circular sets the minimum tax effect for appeals to prevent the expenditure of judicial resources on relatively minor amounts.
The tribunal’s decision to dismiss the appeal was based on the lack of sufficient tax effect, effectively rendering the appeal as not maintainable. Additionally, the cross objection by the respondent also became otiose due to the dismissal of the main appeal.
This case highlights the practical application of CBDT’s guidelines on the monetary limits for filing tax appeals, intended to reduce unnecessary litigation and focus resources on more significant tax disputes. The decision reinforces the importance of assessing the monetary impact of tax issues before proceeding to higher judicial forums.
The dismissal of the appeal by ITAT for want of sufficient tax effect underlines the necessity for compliance with procedural guidelines and the rationalization of judicial processes in tax disputes. It serves as a precedent for similar cases, emphasizing judicial prudence and the effective management of legal proceedings in tax matters.
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