The case ITA 9/DEL/2019 involved the appellant Deputy Commissioner of Income Tax (DCIT), Central Circle-1, Gurugram, contesting against Bhupendra Steels Pvt. Ltd., New Delhi. The appeal pertained to the assessment year 2010-11 and was filed on January 1, 2019. The final order was pronounced on August 28, 2019.
The DCIT, Central Circle-1, Gurugram, filed an appeal against Bhupendra Steels Pvt. Ltd. concerning the assessment year 2010-11. The primary issue was related to the tax effect threshold for filing appeals, as stipulated by the Central Board of Direct Taxes (CBDT) Circular No. 17/2019, dated August 8, 2019.
The appeal was heard by a bench comprising Shri H.S. Sidhu, Judicial Member, and Shri Anadee Nath Misshra, Accountant Member, of the Delhi ‘Friday-A’ Bench of the Income Tax Appellate Tribunal (ITAT). The DCIT was represented by Shri N.K. Bansal, Sr. Departmental Representative (DR), while Bhupendra Steels Pvt. Ltd. was represented by their authorized representative.
The DCIT’s counsel argued that the appeal should be considered despite the tax effect being below the threshold specified in the CBDT Circular No. 17/2019. The counsel contended that the tax effect involved was substantial and the appeal raised significant legal questions.
The respondent’s representative argued that the appeal should be dismissed as the tax effect was below the threshold limit of Rs. 50,00,000 as specified in the CBDT Circular No. 17/2019. The representative emphasized the need to adhere to the CBDT’s guidelines to reduce litigation.
After hearing both parties and reviewing the records, the tribunal observed that the tax effect in the present case was indeed below the threshold limit of Rs. 50,00,000 as specified in the CBDT Circular No. 17/2019. The tribunal noted that the CBDT Circular aimed to reduce litigation and streamline the appeal process by setting higher monetary limits for filing appeals.
The tribunal concluded that the appeal filed by the DCIT was not maintainable due to the tax effect being below the specified threshold limit. The tribunal emphasized the importance of adhering to the CBDT’s guidelines to ensure efficient management of tax litigation.
The final order in ITA 9/DEL/2019 was pronounced on August 28, 2019, with the appeal dismissed as non-maintainable due to the tax effect being below the threshold limit. This decision reaffirmed the significance of the CBDT Circular No. 17/2019 in managing tax litigation effectively.
Appeal on Tax Effect Threshold: DCIT vs. Bhupendra Steels – ITA 9/DEL/2019
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