Case Number: ITA 1163/DEL/2020
Appellant: ITO Ward 70(5), New Delhi
Respondent: Vishal Kakkar, Faridabad
Assessment Year: 2011-12
Result: Appeal dismissed due to low tax effect
Case Filed On: 2020-06-12
Order Type: Final Tribunal Order
Date of Order: 2022-07-15
Pronounced On: 2022-07-15
The case involves an appeal filed by the Income Tax Officer (ITO) Ward 70(5), New Delhi, against Vishal Kakkar, Faridabad, for the assessment year 2011-12. The appeal was directed against the order of the Commissioner of Income-tax (Appeals) [CIT(A)]-28, New Delhi, dated 25.02.2020.
The appellant, ITO Ward 70(5), New Delhi, filed the appeal against the respondent, Vishal Kakkar, challenging the order passed by the CIT(A). The main contention in the appeal was regarding the tax effect, which was less than Rs.50,00,000/- as per the Central Board of Direct Taxes (CBDT) Circular No.17/2019 dated 8th August, 2019.
The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘H’, New Delhi, on 13.07.2022. The bench comprised Dr. B. R. R. Kumar, Accountant Member, and Shri Anubhav Sharma, Judicial Member. The assessee, Vishal Kakkar, represented himself, while the Revenue was represented by Sh. M. Barnawal, Sr. DR.
The Revenue acknowledged that the tax effect in the appeal was less than Rs.50,00,000/- and conceded that the appeal should be dismissed in light of the CBDT Circular No.17/2019.
The ITAT reviewed the case and found that the tax effect was indeed less than the threshold specified in the CBDT Circular No.17/2019, which directs the Revenue not to prefer any appeal where the tax effect is less than Rs.50,00,000/-. The ITAT noted that the circular has retrospective effect, as decided in the case of Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019-TIOL-1556-ITAT-AHM dated 14th August, 2019.
Considering the CBDT Circular and the submissions made by both parties, the ITAT dismissed the appeal filed by the Revenue due to the low tax effect. However, the ITAT allowed the Revenue the liberty to seek recall of the order if the appeal is found to be maintainable at any stage for any technical reasons.
This case highlights the significance of the CBDT Circular No.17/2019, which aims to reduce litigation by setting a monetary threshold for filing appeals. The circular helps in minimizing the burden on the judiciary and focuses the resources of the Revenue Department on high-value cases. The ITAT’s decision to dismiss the appeal due to low tax effect underscores the importance of adhering to the guidelines set forth in the circular.
The dismissal of the appeal due to low tax effect serves as a reminder to the Revenue to carefully evaluate the tax effect before filing appeals. It ensures that judicial resources are utilized efficiently and only significant cases are brought before the tribunal. The retrospective application of the circular ensures that pending appeals with low tax effects are also addressed, contributing to a more efficient tax litigation process.
ITO Ward 70(5) vs. Vishal Kakkar – ITA 1163/DEL/2020: Assessment Year 2011-12
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