Case Number: ITA 1628/DEL/2019
Assessment Year: 2011-12
The case between the Assistant Commissioner of Income Tax, Central Circle-28, New Delhi, and Ayush Buildcon Pvt. Ltd., Delhi, pertained to the assessment year 2011-12. It was lodged with concerns over the tax assessments and claims made by the respondent for the specified year.
Filing Date: February 27, 2019
Order Pronounced on: August 28, 2019
The appeal was filed by the ACIT against the company, challenging the orders in favor of Ayush Buildcon Pvt. Ltd. regarding tax payments and assessments. The core issue revolved around the appropriate tax dues, with the ACIT claiming discrepancies in the filed returns by the respondent.
The proceedings were significantly influenced by the Central Board of Direct Taxes (CBDT) Circular No. 17/2019, which revised the monetary thresholds for filing appeals by the department in tax matters. According to this circular, the monetary limit for filing appeals to the ITAT was raised to Rs. 50,00,000. This pivotal amendment led to the dismissal of multiple appeals by the revenue where the tax effect did not meet the new threshold.
As the tax effect in the current case was also found to be below the specified limit of Rs. 50,00,000, the appeal was dismissed as not maintainable under the revised guidelines. The tribunal highlighted the importance of reducing litigation and focusing departmental efforts on more substantial tax disputes.
The tribunal’s decision to dismiss the appeal based on the updated monetary limits set forth by the CBDT reflects a strategic shift towards minimizing litigation and promoting a more efficient resolution of tax disputes. This case serves as a benchmark for similar cases and underscores the evolving landscape of tax litigation in India.
This case also illustrates the role of administrative circulars in shaping the outcomes of legal proceedings and their direct impact on the enforceability of tax laws.
ACIT, Central Circle-28, New Delhi vs. Ayush Buildcon Pvt. Ltd., Delhi – ITA No. 1628/DEL/2019
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