Case Number: ITA 687/DEL/2021
Appellant: DCIT Central Circle-13, New Delhi
Respondent: Anand Kumar Minda, Assam
Assessment Year: 2013-14
Case Filed on: 2021-06-10
Order Type: Final Tribunal Order
Date of Order: 2023-03-27
Pronounced on: 2023-03-27
This case involves the Deputy Commissioner of Income Tax (DCIT), Central Circle-13, New Delhi, and Anand Kumar Minda, Assam. The primary issue under consideration is the dismissal of the appeals due to low tax effect as per CBDT Circular No. 17/2019 for the assessment year 2013-14.
Anand Kumar Minda, an individual, faced a search operation under Section 132 of the Income Tax Act on 08.06.2017 and subsequent dates. The search led to reassessments under Sections 143(3) and 153A for multiple assessment years, including 2013-14. The DCIT Central Circle-13 filed appeals against the orders of the Commissioner of Income Tax (Appeals)-26, New Delhi, which had granted relief to Anand Kumar Minda.
The two appeals filed by the Revenue, ITA Nos. 686 & 687/Del/2021, pertained to the assessment years 2012-13 and 2013-14. The appeals were directed against the separate orders of the CIT(A)-26, both dated 23.04.2020.
The appeals were based on the contention that the CIT(A) had erred in providing relief to the assessee. However, the primary ground for the dismissal of these appeals was the low tax effect involved, which was below the prescribed limit as per the CBDT Circular No. 17/2019.
CBDT Circular No. 17/2019, dated 08.08.2019, raised the monetary limit for filing appeals by the Department before the Income Tax Appellate Tribunal (ITAT) to Rs. 50 lakhs. This circular was issued to reduce litigation and manage resources efficiently. It amended the earlier Circular No. 3/2018, which had set lower monetary limits.
The circular specifies that the monetary limits for filing appeals are as follows:
The circular also clarifies that these limits apply to all pending appeals.
The hearing for these appeals took place on 27.03.2023. The Department Representative (DR) submitted that the tax effect in both appeals was below the prescribed limit of Rs. 50 lakhs as per the CBDT Circular No. 17/2019. The Assessee’s Representative (AR) conceded to this submission.
The ITAT Delhi Bench, comprising Shri Shamim Yahya (Accountant Member) and Ms. Astha Chandra (Judicial Member), reviewed the submissions and the material on record. The Tribunal noted that the tax effect in both appeals was indeed below the Rs. 50 lakh threshold set by the CBDT Circular No. 17/2019. Therefore, the appeals were not maintainable.
The Tribunal dismissed the Revenue’s appeals due to the low tax effect, aligning with the guidelines set by the CBDT Circular No. 17/2019. The Tribunal emphasized that the Department could seek a recall of the order if the appeals were found to be maintainable on technical grounds at any stage.
This ruling highlights the importance of adhering to CBDT guidelines to manage litigation efficiently. The decision reinforces the principle that appeals should only be filed when the tax effect meets the prescribed monetary limits, ensuring that resources are allocated effectively.
The detailed analysis of the procedural background shows the sequence of events leading to the reassessments and subsequent appeals. The original assessments were followed by search operations, leading to reassessments under Sections 143(3) and 153A.
The DCIT’s assessment orders were challenged by Anand Kumar Minda, leading to relief granted by the CIT(A). The CIT(A) re-evaluated the additions, applying a more precise calculation method that aligned with judicial precedents and CBDT guidelines.
The Tribunal referred to the CBDT Circular No. 17/2019, which provided clear guidelines on the monetary limits for filing appeals. The Tribunal also emphasized that the dismissal of appeals due to low tax effect ensures efficient litigation management.
The final judgment emphasized that the appeals filed by the Revenue were not maintainable due to the low tax effect. The Tribunal’s approach was consistent with CBDT guidelines, ensuring that resources were allocated effectively for higher-value cases.
This case highlights the importance of judicial consistency and adherence to CBDT guidelines in managing tax litigation. The Tribunal’s ruling reinforces the principles of efficient resource allocation and fair assessment practices, ensuring that appeals are filed only when the tax effect meets the prescribed limits. This decision serves as a significant precedent for future cases involving the applicability of CBDT Circulars and the importance of managing litigation efficiently.
DCIT vs Anand Kumar Minda: Case Filed for Low Tax Effect for Assessment Year 2013-14
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