This case summary discusses the decision in ITA No. 36/Del/2019 where the Income Tax Appellate Tribunal (ITAT) Delhi bench dismissed the revenue’s appeal against Shri Krishna Finbiz P. Ltd. for the assessment year 2008-09.
The case involves the Income Tax Officer (ITO) of Ward-23(3), New Delhi, who appealed against the order of the CIT(A)-11, New Delhi. The appeal was in relation to the assessment year 2008-09 concerning tax liabilities of Shri Krishna Finbiz P. Ltd., formerly known as Marvel Exim Ltd.
The hearing took place on August 23, 2019, with the pronouncement on August 28, 2019. Notably, no representative appeared on behalf of the assessee, and the Senior Departmental Representative, Ms. Naina Soin Kapil, represented the revenue.
The primary issue was the applicability of the Central Board of Direct Taxes (CBDT) Circular No.17/2019, which revised the monetary limit for filing appeals by the Revenue to Rs. 50 lakhs. Since the tax effect involved was below this threshold, the ITAT dismissed the appeal, citing the circular and its clarification issued on August 20, 2019, as reasons for the dismissal.
This case highlights the impact of administrative circulars on the litigation strategy of the Revenue. It emphasizes the need for the Revenue to consider monetary thresholds before pursuing litigation, aligning with the government’s policy to reduce litigious cases and promote a tax-friendly environment.
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