Case Number: ITA 472/DEL/2019
Appellant: DCIT, Central Circle, Noida
Respondent: PGP Charitable Trust, Delhi
Assessment Year: 2012-13
Case Filed On: 2019-01-23
Order Type: Final Tribunal Order
Date of Order: 2019-08-28
Pronounced On: 2019-08-28
The case of DCIT, Central Circle, Noida vs PGP Charitable Trust pertains to the assessment year 2012-13. The appeal was filed by the department against the order dated 11.10.2018 passed by the Commissioner of Income Tax (Appeals)-IV, Kanpur. The issue involved in the appeal was related to the tax effect, which the department claimed was significant enough to warrant an appeal.
The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘B’ heard the case on 23.08.2019. The appellant, DCIT, Central Circle, Noida, was represented by Ms. Naina Soin Kapil, Sr. DR. The respondent, PGP Charitable Trust, was represented by Sh. Deepesh Garg and Pulkit Advani, Advocates.
The issue at hand was the applicability of CBDT Circular No. 17/2019, which prescribes the tax effect for preferring appeals before the Tribunal by the revenue. According to this circular, appeals with a tax effect below Rs. 50 lakhs are not to be filed by the revenue.
After reviewing the materials available on record, the ITAT noted that the tax effect involved in the appeal was below the limit prescribed by CBDT Circular No. 17/2019. The tribunal also considered the subsequent clarification issued by the CBDT on 20.08.2019, which made it clear that the revised monetary limits apply retrospectively to pending appeals as well.
The Ld. Sr. DR could not provide any reason why the circular should not apply to this case. As a result, the ITAT held that the appeal deserved to be dismissed on account of low tax effect, as prescribed by the circular and its subsequent clarification.
In conclusion, the ITAT dismissed the appeal filed by the DCIT, Central Circle, Noida, against PGP Charitable Trust for the assessment year 2012-13 due to the low tax effect as per CBDT Circular No. 17/2019. This decision underscores the importance of adhering to the monetary limits set by the CBDT for filing appeals, ensuring that the judicial resources are utilized efficiently and only for cases with significant tax implications.
The appeal filed by the DCIT, Central Circle, Noida, against PGP Charitable Trust for the assessment year 2012-13 was dismissed due to the low tax effect. The tribunal’s decision highlights the application of CBDT Circular No. 17/2019 in ensuring that appeals with a tax effect below the prescribed limit are not entertained, thereby optimizing the use of judicial resources and focusing on cases with higher tax implications.
DCIT vs PGP Charitable Trust: Appeal Dismissed Due to Low Tax Effect – ITA 472/DEL/2019
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