Case Number: ITA 5049/DEL/2019
Appellant: ITO Ward-65(3), New Delhi
Respondent: Meenakshi Singh (L/H of Major General (Retd.) Rajeshwar Singh), Gurgaon
Assessment Year: 2012-13
Result: Final Tribunal Order
Case Filed On: 2019-05-31
Date of Order: 2019-08-28
Pronounced On: 2019-08-28
This appeal was filed by the Income Tax Officer (ITO) Ward-65(3), New Delhi, against Meenakshi Singh, the legal heir of Major General (Retd.) Rajeshwar Singh, pertaining to the assessment year 2012-13. The primary issue in dispute was the assessment order and the related tax liabilities.
The appeal was based on the following grounds:
At the outset, the appellant, ITO Ward-65(3), New Delhi, highlighted the discrepancies in the assessment order and argued that the order was erroneous and prejudicial to the interests of the Revenue. The appellant sought a fair reconsideration of the assessment.
Meenakshi Singh, representing the legal heirs of Major General (Retd.) Rajeshwar Singh, defended the assessment order and argued that the order was fair and in accordance with the law. The respondent requested the tribunal to dismiss the appeal filed by the ITO.
The tribunal, upon reviewing the submissions, noted that the appeal was affected by the recent Central Board of Direct Taxes (CBDT) Circular No. 17/2019 dated 08.08.2019. According to this circular, the monetary limit for filing appeals by the Revenue in Income Tax Appellate Tribunal (ITAT) was enhanced to Rs. 50,00,000/-. The tribunal observed that the tax effect in the present appeal was below this revised monetary limit.
In conclusion, the tribunal noted that the appeal filed by the Revenue was not maintainable under the revised CBDT Circular No. 17/2019. The appeal was dismissed as withdrawn due to the low tax effect. The order was pronounced in open court on 28.08.2019.
This case underscores the significance of the revised CBDT Circular in facilitating the reduction of litigation and providing a structured resolution mechanism for tax disputes.
The tribunal’s decision to dismiss the appeal due to the low tax effect reflects the effectiveness of the revised CBDT Circular in resolving tax disputes. It highlights the benefits of such measures, which offer a streamlined process for settling tax liabilities and reducing legal burdens.
Taxpayers should remain informed about the revised monetary limits and procedural requirements for filing appeals. Tax authorities and legal professionals must continue to promote and facilitate the use of such measures to ensure a fair and effective tax dispute resolution process.
In the broader context, this case is part of a larger effort by the CBDT to manage and reduce litigation. The revised monetary limits set by the CBDT aim to focus resources on significant cases, thus improving the efficiency of the tax administration system. The circular also provides a clear directive to withdraw appeals where the tax effect is below the specified limit, ensuring that the appellate forums are not burdened with cases involving relatively small amounts.
The tribunal’s decision in this case aligns with several other precedents where similar appeals were dismissed due to the revised monetary limits. This consistent application of the CBDT’s guidelines highlights the judiciary’s support for administrative measures aimed at reducing litigation and enhancing the efficiency of the tax dispute resolution process.
In summary, the tribunal’s decision to dismiss the appeal filed by ITO Ward-65(3), New Delhi, against Meenakshi Singh underlines the effectiveness of the revised CBDT Circular in reducing unnecessary litigation. By setting a higher threshold for appeals, the CBDT aims to ensure that the appellate forums focus on more significant cases, thereby improving the overall efficiency of the tax administration system.
Taxpayers and tax professionals should take note of these developments and ensure compliance with the revised guidelines to avoid unnecessary legal proceedings. The tribunal’s decision serves as a reminder of the importance of adhering to administrative measures designed to streamline the tax dispute resolution process.
ITO Ward-65(3), New Delhi vs. Meenakshi Singh: Appeal Withdrawal Due to Low Tax Effect
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