Case Number: ITA 5489/DEL/2019
Appellant: ACIT Central Circle, New Delhi
Respondent: Teen Murti Products Pvt. Ltd., Ghaziabad
Assessment Year: 2008-09
Result: Final Tribunal Order
Case Filed on: 2019-06-21
Date of Order: 2019-09-30
Pronounced on: 2019-09-30
The case between the ACIT Central Circle and Teen Murti Products Pvt. Ltd. concerns the implications of CBDT Circular No. 17/2019 which revised the monetary thresholds for tax disputes pursued in appeals. This case discusses the applicability of this circular to the disputes in question and the subsequent dismissal based on the new monetary limit guidelines.
The appellant, represented by the ACIT, challenged an earlier CIT(A) decision concerning tax computations for the 2008-09 assessment year. The respondent’s counsel argued for dismissal based on the newly instituted monetary limits that restrict appeals to cases where the tax effect exceeds Rs. 50 lakhs.
The tribunal examined the application of CBDT Circular No. 17/2019 in the context of pending appeals and determined that the circular is applicable retrospectively to all pending matters. It found that the tax effect involved in this particular appeal was below the stipulated Rs. 50 lakhs, rendering the appeal non-maintainable under the new guidelines.
Consequently, the tribunal dismissed the appeal by the ACIT, upholding the application of the circular and citing the need for consistency in the application of such guidelines across similar cases. The decision reinforces the policy intent to reduce litigation in tax matters where the financial stakes do not meet the higher threshold.
This case sets a precedent for other pending and future appeals concerning the monetary limits set forth by the CBDT, aiming to streamline the appeal process and focus judicial resources on higher stake disputes.
ACIT Central Circle vs. Teen Murti Products Pvt. Ltd.: Tax Effect Dispute in AY 2008-09
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