Case Number: ITA 142/DEL/2019
Appellant: DCIT (Exemption), Circle, Ghaziabad
Respondent: S.D. High School Association, Ghaziabad
Assessment Year: 2015-16
Result: 2015-16
Case Filed on: 2019-01-10
Order Type: Final Tribunal Order
Date of Order: 2019-08-28
Pronounced on: 2019-08-28
This case involves an appeal filed by the DCIT (Exemption), Circle, Ghaziabad against S.D. High School Association, Ghaziabad, concerning the assessment year 2015-16. The primary issue in this case revolves around the applicability of the Central Board of Direct Taxes (CBDT) Circular No.17/2019, which increased the monetary limit for filing appeals by the Revenue before the Tribunal to Rs. 50 lakhs.
The appeal was filed by the DCIT (Exemption), Circle, Ghaziabad on 2019-01-10 against the order dated 24.10.2018 of the CIT(A), Ghaziabad. The appeal concerns the tax assessment for the year 2015-16, with the Revenue challenging the decision of the CIT(A).
Hearing and Pronouncement: The hearing took place on 23.08.2019, and the decision was pronounced on 28.08.2019.
Representatives: None appeared on behalf of the assessee, while the Revenue was represented by Ms. Naina Soin Kapil, Sr. DR.
The DCIT (Exemption), Circle, Ghaziabad filed the appeal challenging the CIT(A)’s decision. However, during the proceedings, it was observed that the tax effect involved in the grounds raised by the Revenue was below Rs. 50 lakhs.
The CBDT, through Circular No.17/2019 dated 8th August 2019, raised the monetary limit for filing appeals by the Revenue before the Tribunal to Rs. 50 lakhs. Additionally, a Notification dated 20th August 2019 clarified that this revised monetary limit is applicable even to pending appeals.
The record shows that the tax effect involved in the present case is below the specified limit of Rs. 50 lakhs. As a result, the appeal by the Revenue is not maintainable under the provisions of the revised CBDT Circular.
The ITAT Delhi Bench, comprising Shri R.K. Panda (Accountant Member) and Ms. Suchitra Kamble (Judicial Member), reviewed the case and concluded that the appeal filed by the Revenue is not maintainable due to the tax effect being below the monetary limit specified in the CBDT Circular No.17/2019.
The Tribunal dismissed the appeal, citing the CBDT Circular and its subsequent clarification, which clearly state that the revised monetary limit is applicable even to pending appeals.
The case of DCIT (Exemption), Circle, Ghaziabad vs. S.D. High School Association highlights the importance of adhering to the monetary limits set by the CBDT for filing appeals. The Tribunal’s decision reinforces the application of the CBDT Circular No.17/2019, emphasizing that appeals with tax effects below the specified threshold are not maintainable, thereby reducing the burden on the judicial system and ensuring that only substantial cases are brought before the Tribunal.
Order Pronounced: 28th August, 2019
Members: R.K. Panda (Accountant Member) and Ms. Suchitra Kamble (Judicial Member)
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