Case Number: ITA 1311/DEL/2021
Appellant: DCIT, Central Circle-31, New Delhi
Respondent: SRC Buildtech Pvt. Ltd., New Delhi
Assessment Year: 2017-18
Case Filed On: 2021-10-04
Order Type: Final Tribunal Order
Date of Order: 2022-09-08
Pronounced On: 2022-09-08
The Income Tax Appellate Tribunal (ITAT) Delhi Bench dealt with an appeal filed by the Deputy Commissioner of Income Tax (DCIT) against SRC Buildtech Pvt. Ltd. regarding the assessment year 2017-18. This case brings into focus the monetary limits set by the CBDT for filing departmental appeals.
The appeal was raised by the revenue against the order of the CIT(A)-30, New Delhi. The central contention was around the tax effect involved in the dispute which was less than Rs. 50 lakhs, the threshold below which the department is advised against filing appeals as per CBDT Circular No. 17/2019.
The tribunal, upon examining the tax effect involved and the stipulations under the CBDT circular, decided that the revenue’s appeal was not maintainable. The tribunal noted that no exceptions applicable under the circular were brought to their notice that would necessitate a departure from this rule.
This case underscores the importance of the monetary thresholds established by the CBDT which are intended to reduce litigation in cases where the tax effect does not justify the costs involved in pursuing an appeal. The decision helps in understanding how these limits are applied in real-world scenarios, ensuring that resources are utilized efficiently by the tax departments.
Order pronounced in the open court on 08/09/2022.
Judicial Member: Sh. C. N. Prasad
Accountant Member: Dr. B. R. R. Kumar
Order Dated: 08/09/2022
DCIT, Central Circle-31, New Delhi vs. SRC Buildtech Pvt. Ltd., New Delhi: Assessment Year 2017-18
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