This case pertains to an appeal filed by the Department against A2Z Infra Services Ltd concerning the assessment year 2014-15. The key issue revolved around the tax effect involved in the appeal, which was below the monetary threshold set by the CBDT.
The department challenged the order of the ld CIT(A) for the assessment year 2014-15. Initially, at the hearing, the appellant’s representatives pointed out that according to the CBDT Circular No. 17/2019 dated 08th August 2019, the department should not have pursued an appeal at the Tribunal level since the tax effect was less than Rs. 50 lakhs.
The department, represented by senior officials, argued that the circular applies prospectively and not to pending appeals. However, after reviewing the circular and the tax effect involved, the tribunal found that the appeal was indeed not maintainable under the new guidelines, which apply to all pending appeals as clarified in subsequent judgements.
The Tribunal observed that the CBDT’s instructions are binding on the authorities, leading to the dismissal of the appeal due to the tax effect being below the stipulated threshold of Rs. 50 lakhs. This decision emphasizes the importance of administrative circulars in reducing litigation and streamlining tax disputes.
This judgment reinforces the CBDT’s efforts towards litigation management and the need for the department to adhere to its own circulars regarding the monetary limits for filing appeals. It sets a precedent that aids in reducing unnecessary litigation and focuses resources on more significant cases, aligning with the broader goals of efficiency and judicious use of judicial time.
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