Case Number: ITA 5061/DEL/2019
Appellant: DCIT, Circle-1(1)(2), International Taxation, New Delhi
Respondent: Bently Nevada LLC, Gurgaon
Assessment Year: 2004-05
Result: Final Tribunal Order
Case Filed On: 2019-05-31
Date of Order: 2019-08-23
Pronounced On: 2019-08-23
The appeal was filed by the Deputy Commissioner of Income Tax (DCIT), Circle-1(1)(2), International Taxation, New Delhi, against Bently Nevada LLC, Gurgaon, for the assessment year 2004-05. The case was filed on 31st May 2019 and the final tribunal order was pronounced on 23rd August 2019.
The case was listed before the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘A’, for hearing on 23rd August 2019. The appellant was represented by Shri Sanjay Goel, CIT-DR, and the respondent by Shri Deepesh Garg, Advocate, Shri Pulkit Advani, Advocate, and Shri Lalit Mohan, CA.
The case was heard by the bench comprising Justice P.P. Bhatt, President, and Shri G.S. Pannu, Vice President. The appeal was listed by the registry before the bench on the grounds that it did not survive for consideration in view of the CBDT Circular No. 17/2019 dated 8th August 2019, which amended the monetary limits for filing of appeals by the Department before the Tribunal. The tax effect in dispute was below the enhanced monetary limit of Rs. 50 lakhs specified in the CBDT Circular.
The Tribunal dismissed the appeal as withdrawn/not pressed in light of the CBDT Circular dated 8th August 2019. It clarified that if, at a later date, the Revenue finds that the tax effect in dispute in any of the appeals is more than the limit prescribed in the Circular dated 8th August 2019, or is protected by any of the exceptions provided in para 10 of the CBDT Circular dated 11th July 2018, it shall be at liberty to approach the Tribunal for recall of the order and reinstitution of the appeal for adjudication on merits.
This case highlights the impact of the CBDT’s revised monetary limits on pending appeals and reinforces the importance of compliance with updated regulations for filing appeals. The dismissal of the appeal underlines the Tribunal’s adherence to the CBDT Circular, ensuring that only cases meeting the monetary threshold are considered, thereby reducing the litigation burden.
The order was pronounced in the open court at the conclusion of the hearing on 23rd August 2019 by Justice P.P. Bhatt, President, and Shri G.S. Pannu, Vice President.
DCIT vs. Bently Nevada LLC: Appeal Dismissed Due to Monetary Limit Circular
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