This article provides an exhaustive analysis of the appeal ITA 1409/DEL/2019 for the assessment year 2009-10, concerning ITO (Exemptions), Rohtak, and Sewak Sabha Charitable Trust, Hisar.
The case deals with appeals filed by the department against separate orders dated 14.11.2018 by the Commissioner of Income Tax (Appeals)-Hisar for the assessment years 2009-10, 2013-14, and 2014-15.
Initially brought to attention, the tax effect involved was below Rs. 50 lakhs, falling within the parameters of the CBDT Circular No. 17/2019 dated 08.08.2019, which set the monetary limits for filing appeals before the Tribunal. As clarified further by the CBDT on 20th August 2019, these limits apply retrospectively to pending appeals, making the circular binding on tax authorities.
Upon examination, it was noted that the tax disputes in question did not meet the required monetary threshold, leading to the dismissal of the appeals in limine without delving into the merits of the case.
The dismissal based on the low tax effect criterion underscores the importance of administrative circulars in reducing litigation and promoting a more efficient tax dispute resolution process. This case serves as a pertinent example of the practical implications of such regulatory guidelines, streamlining the judicial process and conserving judicial time for more significant disputes.
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