This document presents a comprehensive overview of the Income Tax Appellate Tribunal (ITAT) decision in the case between the Deputy Commissioner of Income Tax (DCIT), New Delhi, and M/s C & C Construction Ltd., New Delhi, for the assessment year 2015-16.
The case, ITA No. 768/DEL/2019, was filed by the DCIT challenging the financial assessments related to M/s C & C Construction Ltd. for the assessment year 2015-16. The appeal was initiated due to discrepancies identified by the tax authorities in the financial submissions by the company.
The hearing was scheduled on January 10, 2020, and the final order was pronounced on January 17, 2020, by the ITAT Delhi Bench ‘Friday’. The presiding members were Ms. Sushma Chowla, JM, and Dr. B.R.R. Kumar, AM.
During the proceedings, it was highlighted that the tax effect involved in the cases was below Rs. 50 Lakhs. Consequently, adhering to the CBDT Circular No. 17/2019 dated August 8, 2019, which revised the monetary limit for filing appeals before the Tribunal to Rs. 50 Lakhs, the appeal by the Revenue was deemed not maintainable. Furthermore, the CBDT letter dated August 20, 2019, clarified that the said Circular would apply to all pending appeals, which includes the current case.
The Tribunal dismissed the appeals as the involved tax effect was below the specified monetary limit, thus not justifying further legal proceedings. The order allowed for the withdrawal of the appeals and emphasized that the Revenue could re-institute the appeals if conditions outlined in the exceptions of the circular were met in the future.
The dismissal of the appeal based on the low tax effect underlines the Tribunal’s adherence to administrative guidelines aimed at reducing litigation. This case sets a precedent for similar cases where the monetary limit does not justify an appeal, aiming to streamline tax litigation and focus resources on higher value disputes.
The decision in ITA No. 768/DEL/2019 serves as a significant reference point for tax-related disputes, highlighting the impact of administrative circulars on the legal process concerning tax appeals.
Case Summary: DCIT vs. M/s C & C Construction Ltd., Assessment Year 2015-16 (ITA 768/DEL/2019)
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