This review delves into the tribunal’s decision in the case of ITO Ward 5(1), Delhi vs. Broad Ways Security and Detective Pvt. Ltd, focusing on the dismissal based on the low tax effect policy outlined in CBDT Circular No. 17/2019.
The appellant, ITO Ward 5(1), Delhi, challenged the deletions made by the CIT(A) regarding the addition of delayed deposits of EPF/ESI shares by the assessee. The Revenue’s appeals for multiple assessment years were bundled due to similar issues contested.
The core issue was whether the appeals should be maintained despite the low tax effect which falls below the monetary limit set by the CBDT for filing appeals. The Tribunal noted discrepancies in the grounds raised by the ITO and found that they did not meet the stipulated monetary threshold, leading to dismissal of the appeals.
The case highlights the application of CBDT guidelines regarding the monetary limits for filing appeals and the Tribunal’s adherence to these guidelines, reinforcing the principles of judicial and administrative economy. The dismissal based on low tax effect emphasizes the need for the Revenue to consider economic viability before pursuing litigation.
The final decision was pronounced in the open court on September 4, 2023, dismissing the Revenue’s appeal due to the low tax effect.
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