This case involves an appeal filed by the Deputy Commissioner of Income Tax, Central Circle-20, New Delhi against Weldon Polymers Pvt. Ltd. concerning the assessment year 2010-11. The case was pronounced on January 5, 2023, by the Income Tax Appellate Tribunal, Delhi Bench ‘H’.
Appellant: DCIT, Central Circle-20, New Delhi.
Respondent: Weldon Polymers Pvt. Ltd., New Delhi.
The main point of contention in this appeal was the tax effect involved, claimed to be below the prescribed limit of 50 lakhs as per the Central Board of Direct Taxes (CBDT) guidelines. During the proceedings, the appellant was represented by Ms. Ananya Kapoor, Advocate, and the department’s side was presented by Shri Sumit Kumar Verma, Senior Departmental Representative.
The Tribunal, led by Judicial Member Shri Challa Nagendra Prasad and Accountant Member Dr. B.R.R. Kumar, considered the submissions and the applicable laws, notably CBDT Circular No. 17/2019 which prescribes a monetary limit below which appeals should not be preferred. It was concluded that the tax effect in this appeal was indeed below the threshold, leading to a dismissal of the case as infructuous.
The decision to dismiss the appeal highlights the Tribunal’s adherence to the CBDT’s guidelines aimed at reducing litigation related to low tax effects. This case sets a precedent for similar cases and reinforces the policy of minimizing unnecessary legal disputes over minor tax issues.
The final judgment was pronounced in the open court on January 5, 2023. The Tribunal dismissed the appeal, marking it as infructuous due to the low tax effect. This decision could be recalled for technical reasons if found necessary in the future.
Analysis of ITA 975/DEL/2020: Dismissal due to Low Tax Effect
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