This article provides a comprehensive analysis of the tribunal proceedings in ITA No. 1116/DEL/2019, involving the Assistant Commissioner of Income Tax (ACIT), Circle 3(1)(2), International Taxation, New Delhi, and Siemens International Trading Ltd., Shanghai. The case addresses the dismissal of the Revenue’s appeal based on the revised monetary limits for filing appeals.
The appellant, ACIT Circle 3(1)(2), International Taxation, New Delhi, filed an appeal against the order dated 29th November 2018 of the CIT(A)-43, New Delhi, for the assessment year 2015-16. The appeal was taken up for hearing on 23rd August 2019, and the decision was pronounced on 28th August 2019.
The case was heard by the ITAT Delhi Bench ‘B’ on 23rd August 2019, with the order pronounced on 28th August 2019. The bench consisted of Shri R.K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member.
The Revenue, represented by Ms. Naina Soin Kapil, Sr. DR, challenged the order of the CIT(A)-43, New Delhi. The primary issue was the applicability of the revised monetary limits for filing appeals as per the CBDT Circular No. 17/2019 dated 8th August 2019.
During the hearing, it was noted that the tax effect involved in the grounds raised by the Revenue was below Rs. 50 lakhs. The tribunal observed that as per the CBDT Circular No. 17/2019, the monetary limit for filing appeals by the Revenue before the Tribunal was raised to Rs. 50 lakhs. This limit was applicable even to pending appeals as clarified by the CBDT Notification dated 20th August 2019.
‘Since, in the instant case, admittedly, the tax effect involved in the grounds raised by the Revenue is below Rs. 50 lakhs, therefore, in view of the CBDT Circular No.17/2019 dated 8th August 2019 and the subsequent clarification by the CBDT on 20th August 2019 to the effect that the said Circular is applicable even to pending appeals, the appeal filed by the Revenue is not maintainable.’
The tribunal concluded that the appeal filed by the Revenue was not maintainable and thus dismissed it. The decision was pronounced in the open court on 28th August 2019.
The tribunal’s final judgment stated:
‘In the result, the appeal filed by the Revenue is dismissed. The decision was pronounced in the open court on 28.08.2019.’
This judgment highlights the tribunal’s adherence to the revised monetary limits set by the CBDT for filing appeals and underscores the importance of complying with procedural guidelines.
This case serves as a precedent for similar disputes, emphasizing the importance of adhering to the revised monetary limits for filing appeals as stipulated by the CBDT. It underscores the role of the ITAT in ensuring that appeals are decided based on the latest guidelines and procedural fairness.
The following sections provide a detailed account of the tribunal’s deliberations and the legal arguments presented by both sides during the hearing of ITA No. 1116/DEL/2019.
The appellant, ACIT Circle 3(1)(2), International Taxation, New Delhi, filed the appeal against Siemens International Trading Ltd., Shanghai, challenging the order of the CIT(A)-43, New Delhi, for the assessment year 2015-16.
The Commissioner had issued an order on 29th November 2018, which was subsequently challenged by the Revenue. The primary issue was the tax effect involved, which was below the revised monetary limit of Rs. 50 lakhs as per the CBDT Circular No. 17/2019.
‘The CBDT, vide Circular No.17/2019 dated 8th August, 2019 has raised the monetary limit for filing of appeal by the Revenue before the Tribunal to Rs.50 lakhs.’
The tribunal emphasized the importance of adhering to the revised monetary limits and dismissed the appeal as not maintainable.
The tribunal’s decision in ITA No. 1116/DEL/2019 underscores the importance of complying with the revised monetary limits for filing appeals. By dismissing the appeal based on the CBDT Circular No. 17/2019, the tribunal reinforced the principles of procedural fairness and ensured that the appeal would be decided based on the latest guidelines.
This case serves as an important reference point for future tax litigation, highlighting the need for adherence to the revised monetary limits and procedural guidelines. It also underscores the role of the ITAT in ensuring that tax disputes are resolved efficiently and justly.
Order pronounced in open court on this 28th day of August, 2019.
Per R.K. Panda, Accountant Member, and Suchitra Kamble, Judicial Member.
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