Case Number: ITA 5977/DEL/2019
Appellant: ITO (E), Rohtak
Respondent: Lahoria Education Society, Hisar
Assessment Year: 2014-15
Order Type: Final Tribunal Order
Date of Order: 2019-09-30
Pronounced On: 2019-09-30
Introduction:
This case involves an appeal filed by the Income Tax Officer (Exemptions) [ITO (E)], Rohtak, against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], for the assessment year 2014-15. The appeal was directed against the order passed by the CIT(A), but during the proceedings, it was observed that the tax effect involved in the case was below the threshold limit specified by the Central Board of Direct Taxes (CBDT) Circular No. 17/2019, leading to the dismissal of the appeal.
Background and Grounds of Appeal:
The ITO (E), Rohtak, filed an appeal with the Income Tax Appellate Tribunal (ITAT) against the decision of the CIT(A) concerning the assessment year 2014-15 for Lahoria Education Society, Hisar. The case involved certain tax matters that the ITO (E) sought to contest before the Tribunal. However, during the hearing, it was brought to the Tribunal’s attention that the tax effect involved in the appeal was less than Rs. 50 lakhs.
According to the CBDT Circular No. 17/2019, dated 8th August 2019, and the subsequent clarification issued on 20th August 2019, the monetary threshold for filing appeals before the ITAT by the Revenue Department was set at Rs. 50 lakhs. The Circular also specified that the revised limits would apply to all pending appeals, cross objections, and references. As the tax effect in this case did not exceed Rs. 50 lakhs and did not fall under any of the exceptions mentioned in the Circular, the appeal was deemed non-maintainable.
Tribunal’s Analysis and Decision:
The appeal was heard by the Tribunal, consisting of Shri H.S. Sidhu, Judicial Member, and Shri Prashant Maharishi, Accountant Member, on 30th September 2019. The Tribunal acknowledged the claim made by the respondent, Lahoria Education Society, Hisar, that the tax effect involved was below the specified threshold. The Senior Departmental Representative (DR), Ms. Rakhi Vimal, representing the Revenue, initially objected but ultimately, the Tribunal decided to apply the CBDT Circular retroactively to pending appeals.
The Tribunal noted that the CBDT Circular No. 17/2019 explicitly raised the monetary limits for filing appeals to reduce the litigation burden. This step was taken to streamline tax administration and ensure that resources were focused on more significant matters. The Tribunal emphasized that the Revenue Department is precluded from filing appeals in such cases where the tax effect does not exceed Rs. 50 lakhs, as per the CBDT instructions.
The decision to dismiss the appeal was announced in the open court on 30th September 2019, concluding the matter for the assessment year 2014-15.
Conclusion:
The appeal filed by the ITO (E), Rohtak, against Lahoria Education Society, Hisar, for the assessment year 2014-15 was dismissed due to the tax effect being below the threshold specified by the CBDT Circular No. 17/2019. The Tribunal’s dismissal of the appeal reflects adherence to the monetary limits set by the CBDT to streamline and reduce litigation.
Final Judgment:
The appeal filed by the ITO (E), Rohtak, is dismissed due to low tax effect as per CBDT Circular No. 17/2019.
Order Pronounced: 30th September 2019
Judges: Shri H.S. Sidhu, Judicial Member, and Shri Prashant Maharishi, Accountant Member
Reference: INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH ‘E’ NEW DELHI
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