This article provides an exhaustive analysis of the appeal ITA 1411/DEL/2019 for the assessment year 2014-15, concerning ITO (Exemptions), Rohtak, and Sewak Sabha Charitable Trust, Hisar.
The case deals with an appeal filed by the department against the order dated 14.11.2018 by the Commissioner of Income Tax (Appeals)-Hisar for the assessment year 2014-15, among others.
Initially noted was that the tax effect involved was below Rs. 50 lakhs, placing it within the boundaries set by the CBDT Circular No. 17/2019 dated 08.08.2019, which prescribes monetary limits for filing appeals before the Tribunal by the revenue. As clarified further on 20th August 2019, these limits also apply retrospectively to pending appeals, making the circular binding on tax authorities.
Upon review, it was determined that the tax disputes in question did not meet the necessary monetary threshold for appeal, leading to the dismissal of the appeals in limine without an examination of the merits.
The dismissal based on the low tax effect criterion highlights the influence of administrative circulars in reducing litigation and enhancing the efficiency of tax dispute resolutions. This case exemplifies the practical impact of such regulatory guidelines, aiding in the judicial process by reserving time and resources for more substantial disputes.
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