This document provides a detailed analysis of the ITAT case ITA No. 3718/DEL/2019 for the assessment year 2013-14, involving appellant ACIT, Central Circle-6, New Delhi, and respondent KAD Housing Pvt. Ltd., Delhi. The appeal addresses the dismissal of the case based on CBDT Circular No. 17/2019.
KAD Housing Pvt. Ltd., the respondent, filed its return of income for the AY 2013-14, which was assessed by the ACIT, Central Circle-6, New Delhi. The case was brought to the Income Tax Appellate Tribunal (ITAT) for further consideration by the revenue, focusing on the appeal’s maintainability based on the tax effect involved.
The appeal was filed by the ACIT, Central Circle-6, against the order dated 26.02.2019 passed by CIT(A)-24, New Delhi for the assessment year 2013-14. During the appellate proceedings, it was observed that the tax effect involved was less than Rs. 50 lakhs.
The appeal was dismissed following CBDT Circular No. 17/2019 dated 08.08.2019, which stipulates that appeals with a tax effect below Rs. 50 lakhs are not maintainable. This circular was aimed at reducing the litigation burden on the tribunal and ensuring that only substantial tax disputes are contested.
The tribunal, comprising Shri Saktijit Dey, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member, heard the appeal. The tribunal noted the appellant’s request to withdraw the appeal due to the tax effect being below the prescribed limit as per the CBDT circular.
The tribunal accepted the revenue’s request to dismiss the appeal, recognizing that the tax effect was indeed less than Rs. 50 lakhs. The members acknowledged the CBDT circular’s provisions and emphasized the need to adhere to the guidelines set forth to manage the tribunal’s workload effectively.
The ITAT concluded that the appeal filed by the ACIT, Central Circle-6, be dismissed due to the tax effect being below the threshold limit as per the CBDT Circular No. 17/2019. The decision was announced in the open court on 5th December 2022 in the presence of both representatives.
In the result, the appeal of the revenue was dismissed. The order was pronounced in the open court on 05.12.2022.
This case highlights the effective use of the CBDT Circular No. 17/2019 by the revenue to manage and prioritize tax disputes. The tribunal’s adherence to the circular’s guidelines demonstrates its commitment to reducing unnecessary litigation and focusing on substantial tax issues.
Case Review: ACIT, Central Circle-6 vs KAD Housing Pvt. Ltd. – Assessment Year 2013-14
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