This appeal was filed by the Income Tax Officer (ITO), Ward-7(4), New Delhi, against DTS Travels P. Ltd, New Delhi, for the assessment year 2013-14. The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘B’, through video conferencing.
The appellant, ITO Ward-7(4), New Delhi, with PAN: AADCD2588G, had filed the appeal against DTS Travels P. Ltd, located at DSM-127, DLF Towers, Shivaji Marg, Moti Nagar, New Delhi. The case pertained to the tax assessment for the year 2013-14.
During the hearing on 20th February 2023, the counsel for the respondent, DTS Travels P. Ltd, submitted that the tax effect involved in the grounds raised by the Revenue is below Rs.50 lakhs. Therefore, in light of the recent Central Board of Direct Taxes (CBDT) Circular No.17/2019 dated 8th August 2019, which raises the monetary limit for filing appeals by the Revenue to Rs.50 lakhs, and the subsequent clarification dated 20th August 2019 stating that the Circular is applicable to pending appeals as well, the appeal filed by the Revenue is not maintainable.
The ITAT, after considering the submissions from both sides, noted that the tax effect involved in the grounds raised by the Revenue is below Rs.50 lakhs. Therefore, in view of the CBDT Circular No.17/2019 and the subsequent clarification, the appeal filed by the Revenue was found to be not maintainable. The tribunal, comprising Shri G.S. Pannu, Vice President, and Shri Pradip Kumar Kedia, Judicial Member, decided to dismiss the appeal.
However, the tribunal provided a caveat that if the Revenue, at any point in time, finds that the tax effect involved in the grounds is more than Rs.50 lakhs or falls under the exceptions provided in the Circular, the Revenue may move an application for the recall of this order.
The appeal filed by the ITO, Ward-7(4), New Delhi, against DTS Travels P. Ltd, New Delhi, was dismissed under the CBDT Circular No.17/2019. This decision underscores the importance of adhering to the guidelines set forth by the CBDT for filing appeals, ensuring that only substantial cases with significant tax effects are pursued.
Order pronounced in open court on 20th February, 2023.
Sd/-
(G.S. Pannu)
Vice President
Sd/-
(Pradip Kumar Kedia)
Judicial Member
Dated: 20th February, 2023
dk
Copy forwarded to:
Assistant Registrar
ITAT, New Delhi
ITO vs DTS Travels P. Ltd, New Delhi: Appeal Dismissed Under CBDT Circular for AY 2013-14
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