Case Number: ITA 5455/DEL/2019
Appellant: JCIT, Range-76, New Delhi
Respondent: Paramount Villas Pvt. Ltd., New Delhi
Assessment Year: 2013-14
Result: Final Tribunal Order
Case Filed on: 2019-06-19
Date of Order: 2019-09-30
Pronounced on: 2019-09-30
The case between JCIT Range 76, New Delhi and Paramount Villas Pvt. Ltd. revolves around the application of a CBDT circular that sets monetary limits for filing appeals. This case was notable because it tested the boundaries of these limits in the context of pending appeals.
The JCIT filed an appeal against the order of the CIT(A) which pertained to the assessment year 2013-14. The appeal was noteworthy due to the implications of CBDT Circular No. 17/2019, which set a new monetary threshold for appeals.
CBDT Circular No. 17/2019, dated August 8, 2019, raised the monetary limits for filing appeals at various levels of the judiciary, thereby aiming to reduce litigation related to smaller tax disputes. For the Income Tax Appellate Tribunal, the limit was set at Rs. 50 lakhs.
At the hearing, the appellant’s representative argued that the appeal should be decided based on the newly established limits, suggesting that cases with a tax effect below Rs. 50 lakhs should not proceed. However, the Department of Revenue contended that this circular should not apply to pending appeals.
After reviewing the arguments and the circular, the Tribunal found that the tax effect involved in the appeal was below Rs. 50 lakhs. It was determined that, according to the circular, the appeal was not maintainable due to the tax effect being below the stipulated monetary limit. The Tribunal cited previous decisions confirming the applicability of such circulars to pending cases.
Ultimately, the Tribunal dismissed the appeal, highlighting the enforcement of the CBDT’s revised limits to reduce unnecessary litigation. This case serves as a precedent for similar disputes involving the monetary thresholds set by the CBDT for tax appeals.
Order pronounced in the open court on 30/09/2019.
Signatories:
H.S. Sidhu, Judicial Member
Prashant Maharishi, Accountant Member
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