Case Number: ITA 377/DEL/2019
Appellant: Income Tax Officer, Ward-25(4), New Delhi
Respondent: Trinity Insurance Brokers Pvt. Ltd., New Delhi
Assessment Year: 2013-14
Case Filed On: 2019-01-18
Order Type: Final Tribunal Order
Date of Order: 2019-08-28
Pronounced On: 2019-08-28
The case ITA 377/DEL/2019 involves the appellant, Income Tax Officer (ITO) of Ward-25(4), New Delhi, contesting the assessment made by the Commissioner of Income Tax (Appeals)-9, New Delhi in favor of the respondent, Trinity Insurance Brokers Pvt. Ltd., for the assessment year 2013-14. This case was filed on January 18, 2019, and the final order was pronounced on August 28, 2019. The appeal was dismissed on account of low tax effect as per the Central Board of Direct Taxes (CBDT) Circular No. 17/2019.
The case was heard before the Delhi Bench ‘B’ of the Income Tax Appellate Tribunal (ITAT), New Delhi. The bench consisted of Shri R.K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member.
The appeal filed by the department is against the separate order dated November 29, 2018, passed by the Commissioner of Income Tax (Appeals)-9, New Delhi, for the assessment year 2013-14.
The department, represented by Ms. Naina Soin Kapil, Sr. DR, brought to the tribunal’s notice that the tax effect involved in this appeal was less than Rs. 50 lakhs. This amount falls within the ambit of CBDT Circular No. 17/2019 dated August 8, 2019, which prescribes the tax effect limit for preferring appeals before the tribunal by the revenue.
Upon perusal of the materials available on record and the CBDT Circular No. 17/2019, the tribunal found that the amount disputed was below the tax effect limit prescribed by the CBDT for preferring appeals before the tribunal. The tribunal noted that the subsequent clarification issued by the CBDT on August 20, 2019, makes it clear that the revised monetary limits apply retrospectively to pending appeals as well. The circular is binding on the tax authorities.
The Senior Departmental Representative (Sr. DR) could not point out any reasons why the circular would not apply to the facts of the case. Therefore, the tribunal held that the appeal of the revenue deserved to be dismissed on account of low tax effect.
In the final judgment, the tribunal dismissed the appeal of the revenue in limine, without going into the merits of the case, due to the low tax effect as per CBDT Circular No. 17/2019 and subsequent clarification on August 20, 2019.
This case underscores the importance of adhering to the guidelines and monetary limits set by the CBDT for filing appeals, ensuring that resources are efficiently utilized and only significant matters are brought before the tribunal.
Order pronounced in the open court on August 28, 2019.
Members:
Representatives:
Dated: August 28, 2019.
ITA 377/DEL/2019: ITO vs. Trinity Insurance Brokers – Case Dismissed Due to Low Tax Effect
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