Case Number: ITA 1443/DEL/2019
Appellant: ITO, Ward-7(1), New Delhi
Respondent: Deusch Motocomp P. Ltd., New Delhi
Assessment Year: 2015-16
Case Filed On: February 21, 2019
Order Type: Final Tribunal Order
Date of Order: September 9, 2019
Pronounced On: September 9, 2019
The appeal was filed by the Income Tax Officer (ITO), Ward-7(1), New Delhi, against the order dated December 18, 2018, passed by the Commissioner of Income Tax (Appeals)-3, New Delhi, for the assessment year 2015-16. The case revolves around a tax arrears dispute involving Deusch Motocomp P. Ltd., located at 209, 2nd Floor, S-1, Sector-D, Pkt.-6, Saraswati Tower, Vasant Kunj, New Delhi.
The appellant, represented by Sh. S.L. Anuragi, Sr. DR, filed the appeal against the CIT(A)’s order. However, it was brought to the Tribunal’s notice that the tax effect involved in the appeal was less than Rs. 50 lakhs, which falls within the ambit of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes (CBDT), prescribing the tax effect limit for preferring appeals before the Tribunal by the Revenue.
The respondent, Deusch Motocomp P. Ltd., did not have a representative present at the hearing.
The case was heard by Shri N.K. Billaiya, Accountant Member, and Ms. Suchitra Kamble, Judicial Member, of the Income Tax Appellate Tribunal, Delhi Bench ‘SMC’. The Tribunal noted that the disputed amount was below the tax effect limit prescribed by CBDT Circular No. 17/2019 dated August 8, 2019, and the subsequent clarification issued on August 20, 2019. This Circular is binding on the tax authorities and applies retrospectively to pending appeals.
The Tribunal observed that the tax effect involved in the appeal was below the threshold of Rs. 50 lakhs, making the appeal non-maintainable as per the revised monetary limits set by the CBDT. The Ld. Sr. DR could not provide any reason why the Circular should not apply to the facts of the case.
Based on the Circular and the clarification, the Tribunal dismissed the appeal of the Revenue due to low tax effect without delving into the merits of the case.
In the result, the appeal of the Revenue was dismissed. The order was pronounced in the open court on September 9, 2019.
Signatories:
(N.K. BILLAIYA) ACCOUNTANT MEMBER
(SUCHITRA KAMBLE) JUDICIAL MEMBER
Date: September 9, 2019
Assistant Registrar: BR
Copy of the Order is forwarded to:
BY ORDER
Assistant Registrar, ITAT, New Delhi
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