Case Number: ITA 5540/DEL/2019
Appellant: ACIT Circle 26(2), New Delhi
Respondent: Vimoni India Pvt. Ltd., New Delhi
Assessment Year: 2015-16
Result: Appeal Dismissed
Case Filed on: 2019-06-25
Order Type: Final Tribunal Order
Date of Order: 2019-09-30
Pronounced on: 2019-09-30
The case in question pertains to an appeal filed by the Assistant Commissioner of Income Tax (ACIT), Circle 26(2), New Delhi against Vimoni India Pvt. Ltd., New Delhi. The appeal relates to the assessment year 2015-16. The primary contention of the appeal was centered around certain tax disputes which prompted the filing of the appeal by the ACIT.
The appeal was filed by the ACIT against the order passed by the Commissioner of Income Tax (Appeals)-19, New Delhi, on the grounds of disputing the tax assessments and subsequent orders that were unfavorable to the department. The case was part of a broader effort by the department to address discrepancies and seek redressal in higher appellate forums.
The case was heard before the Income Tax Appellate Tribunal (Delhi Bench “E”) in New Delhi on 30th September 2019. The bench was comprised of Shri H.S. Sidhu, Judicial Member, and Shri Prashant Maharishi, Accountant Member. The hearing was attended by Ms. Rakhi Vimal, Senior Departmental Representative (DR), while there was no representation from the respondent, Vimoni India Pvt. Ltd.
The ACIT filed the appeal against the order of the CIT(A) for the assessment year 2015-16. The ACIT contested the findings and sought a revision of the assessments which were initially decided in favor of Vimoni India Pvt. Ltd. The dispute primarily involved the applicability and interpretation of certain tax provisions and the resultant tax liabilities.
During the proceedings, the representative of the revenue, Ms. Rakhi Vimal, argued that the CBDT Circular No. 17/2019 dated 8th August 2019, which enhanced the monetary limits for filing appeals, should not be applicable retrospectively to pending appeals. The argument was made to ensure that the case could be heard and adjudicated upon despite the lower tax effect involved.
The Tribunal reviewed the contentions of the revenue and the applicable CBDT Circular. It noted that the CBDT Circular No. 17/2019 explicitly stated that the revised monetary limits were applicable to all pending appeals. The relevant paragraph of the circular was highlighted:
“As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows:
Appeals/SLPs in Income-tax matters | Monetary Limit (Rs.) |
---|---|
Before Appellate Tribunal | 50,00,000 |
Before High Court | 1,00,00,000 |
Before Supreme Court | 2,00,00,000 |
5. The said modifications shall come into effect from the date of issue of this Circular. The same may be brought to the notice of all concerned. This issues under section 268A of the Income-tax Act, 1961.”
The Tribunal found that the tax effect involved in the appeal by the revenue was below the revised limit of Rs. 50 lakhs. Consequently, the Tribunal held that the appeal was not maintainable in view of the CBDT Circular.
The appeal filed by the ACIT, Circle 26(2), New Delhi against Vimoni India Pvt. Ltd. was dismissed due to the tax effect being below the prescribed monetary limit as per the CBDT Circular No. 17/2019. The Tribunal provided liberty to the revenue to file a miscellaneous application if new instances or evidence came to light that could affect the outcome of the appeal. This decision underscores the adherence to the guidelines set forth by the CBDT to manage tax litigation effectively.
The order was pronounced in the open court on 30th September 2019 by the bench comprising Shri H.S. Sidhu, Judicial Member, and Shri Prashant Maharishi, Accountant Member.
Members Present:
Shri H.S. Sidhu, Judicial Member
Shri Prashant Maharishi, Accountant Member
Document Reference:
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)-19, New Delhi
5. DR: ITAT
ASSISTANT REGISTRAR, ITAT NEW DELHI
Appeal by ACIT Circle 26(2) against Vimoni India Pvt. Ltd. in ITA No. 5540/DEL/2019
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