This case involves the Deputy Commissioner of Income Tax, Circle-27(1), New Delhi (the appellant) against Wallmax India Enterprises Pvt Ltd, based in New Delhi. The appeal pertains to the assessment year 2015-16 and revolves around the applicability of CBDT’s revised monetary limits for filing appeals.
The appeal was initially lodged by the Revenue against the order dated November 8, 2018, passed by the Commissioner of Income Tax (Appeals)-9, New Delhi. The order was contested by the appellant concerning the assessment year 2015-16.
During the proceedings on October 28, 2020, presided over by Shri Anil Chaturvedi, Accountant Member, and Shri Sudhanshu Srivastava, Judicial Member, the Departmental Representative pointed out the necessity to withdraw the appeal due to the tax effect involved being below the threshold of Rs. 50 lakhs, as specified in the CBDT Circular No. 17/2019 dated August 8, 2019.
The circular revised the monetary limit for filing appeals before the Income Tax Appellate Tribunal to Rs. 50 lakhs and clarified that it applies to all pending appeals. This development rendered the current appeal non-maintainable on grounds of the low tax effect.
The Tribunal dismissed the appeal as withdrawn/not pressed under the guidelines of the CBDT circular. It was also mentioned that the Revenue retains the liberty to reinstitute the appeal should further material demonstrate that the case falls under the exceptions provided in the circular dated July 11, 2018.
This case underscores the impact of CBDT’s circulars on the management of tax-related appeals and the emphasis on reducing frivolous litigation, thereby expediting the resolution of genuine cases.
The final decision was pronounced on October 28, 2020, concluding that the appeal by the Revenue stands dismissed, reinforcing the practical application of the CBDT’s directives aimed at optimizing judicial resources.
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