Case Number: ITA 5874/DEL/2019
Appellant: ACIT Circle-19(2), New Delhi
Respondent: Payal Polyplast Pvt Ltd (Earlier Known as Payal Petrochem Pvt Ltd), New Delhi
Assessment Year: 2015-16
Case Filed On: 2019-07-05
Order Type: Final Tribunal Order
Date of Order: 2022-06-16
Pronounced On: 2022-06-16
Summary:
The case of ACIT Circle-19(2) vs Payal Polyplast Pvt Ltd concerns a tax effect dispute for the assessment year 2015-16. The appellant, ACIT Circle-19(2), filed an appeal against the order of the Commissioner of Income Tax (Appeals)-19(2), New Delhi, dated 15.03.2019, which was in favor of the respondent, Payal Polyplast Pvt Ltd (formerly known as Payal Petrochem Pvt Ltd).
Background:
The primary issue in this case was whether the appeal filed by the Revenue Department was maintainable, considering the tax effect involved. According to CBDT Circular No. 17/2019, dated 08.08.2019, read with Circular No. 03/2018, dated 11.07.2018, the Revenue Department is precluded from filing appeals before the appellate tribunal if the tax effect does not exceed Rs. 50,00,000/- unless the case falls under certain exceptions.
Grounds of Appeal:
Tribunal Proceedings:
During the hearing, the appellant claimed that the tax effect involved in the appeal was less than Rs. 50,00,000/- and did not fall under any exceptions prescribed in the CBDT Circular. The bench observed this and noted that the appeal was liable to be dismissed as withdrawn, considering the monetary limits specified in the circular.
The Senior Departmental Representative (Sr. DR) representing the Revenue did not refute the claim made by the respondent and accepted the factual position. Consequently, the tribunal found that the appeal was not maintainable and dismissed it as withdrawn. However, the tribunal granted liberty to the Revenue to approach it for recall of the order if it was later revealed that the tax effect was above the prescribed limit or the appeal was protected by any exceptions mentioned in the circular.
Conclusion:
In conclusion, the tribunal dismissed the appeal filed by the Revenue Department as withdrawn due to the tax effect being below the specified limit of Rs. 50,00,000/-. This case highlights the importance of adhering to procedural guidelines and the monetary limits set by the CBDT in filing appeals.
Order Pronouncement:
Order was pronounced in the open court on 16.06.2022.
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(ANIL CHATURVEDI)
ACCOUNTANT MEMBER
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(N.K. CHOUDHRY)
JUDICIAL MEMBER
ACIT Circle-19 vs Payal Polyplast Pvt Ltd – Case Filed Due to Tax Effect Dispute
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