Date of Order: May 10, 2023
Case Number: ITA 2832/DEL/2022
Assessment Year: 2018-19
This case involves an appeal filed by DC IT Central Circle-19, Delhi, challenging the order of CIT(A)-27, New Delhi, which addressed the assessment order passed by the Deputy Commissioner of Income Tax, CPC, Bangalore under Section 143(1) of the Income Tax Act, 1961, for the assessment year 2018-19. The respondent in this case is Jalsa Banquets Pvt. Ltd., a company based in Indore.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘C’, consisting of Judicial Member Shri Saktijit Dey and Accountant Member Shri M. Balaganesh, reviewed the case. The appeal arose from an order dated September 14, 2022, passed by CIT(A)-27, New Delhi, which was challenged by the revenue department. However, the Senior Departmental Representative, Mr. Anuj Garg, pointed out that the present appeal needed to be withdrawn due to the tax effect being below the monetary limit set by the Central Board of Direct Taxes (CBDT).
The appellant, represented by Mr. Anuj Garg, Sr. DR, acknowledged that the tax effect involved in the case was below Rs. 50 lakhs, which is the threshold limit for filing appeals before the Tribunal as per CBDT Circular No. 17/2019 dated August 8, 2019. Consequently, the appeal was not maintainable.
The tribunal noted that the CBDT had revised the monetary limit for filing appeals before the Tribunal to Rs. 50 lakhs. Additionally, the CBDT’s letter dated August 20, 2019, clarified that Circular No. 17/2019 would be applicable to all pending appeals. In light of these guidelines, the tribunal decided that the appeal filed by the revenue was not maintainable due to the low tax effect.
The ITAT dismissed the appeal of the revenue, applying the CBDT Circular dated August 8, 2019, and the letter dated August 20, 2019. The tribunal also clarified that the revenue would have the liberty to approach the Tribunal for re-institution of the appeal if material was brought to show that the appeal was protected by the exceptions prescribed in paragraph 10 of the Circular dated July 11, 2018.
This case highlights the importance of adhering to the monetary limits set by the CBDT for filing appeals to ensure judicial efficiency and reduce the burden of low tax effect cases on the Tribunal. The tribunal’s decision to dismiss the appeal ensures compliance with the CBDT guidelines.
Order pronounced in the open court on May 10, 2023.
Judicial Member: Shri Saktijit Dey
Accountant Member: Shri M. Balaganesh
Assessee Representation: None
Department Representation: Mr. Anuj Garg, Sr. DR
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