Case Number: ITA 699/DEL/2021
Appellant: DCIT, Central Circle-2, New Delhi
Respondent: Manish Periwal, New Delhi
Assessment Year: 2016-17
Case Filed On: 2021-06-11
Order Type: Final Tribunal Order
Date of Order: 2022-08-29
Pronounced On: 2022-08-29
The case ITA 699/DEL/2021 was filed by the Deputy Commissioner of Income Tax (DCIT), Central Circle-2, New Delhi (the appellant), against Manish Periwal, New Delhi (the respondent), concerning the assessment year 2016-17. The primary dispute revolved around the applicability of the Central Board of Direct Taxes (CBDT) circulars regarding the monetary limits for filing appeals and the tax effect involved.
The central issue in this appeal was whether the tax effect in the Departmental appeal exceeded the monetary limit specified by the CBDT circulars, which would determine the maintainability of the appeal before the Tribunal.
The appellant, DCIT, argued for the validity and maintainability of the appeal based on the disputed addition of Rs. 35,02,280, asserting that it warranted examination despite the monetary limits set by the CBDT circulars.
The respondent, Manish Periwal, represented by Ms. Shweta Bansal, CA, argued that the tax effect involved in the appeal was less than Rs. 50 lakhs. Therefore, per the CBDT Circular No. 3/18 dated 11.07.2018 and further amended by Circular No. 17/2019 dated 08.08.2019, the Department should not have filed the appeal as the tax effect did not exceed the specified monetary limit for filing appeals before the Tribunal.
The Income Tax Appellate Tribunal (ITAT) analyzed the arguments presented by both parties. The Tribunal noted the following key points:
The Tribunal observed that similar appeals of the Revenue for previous assessment years were dismissed by the Tribunal based on the same circulars. The Ld. Departmental Representative, Shri Jitender Chand, Sr. DR, did not press the appeal, acknowledging the applicability of the CBDT circulars.
Given these observations, the Tribunal concluded that the Departmental appeal was not maintainable as it contravened the Board’s instructions regarding the monetary limits for filing appeals.
The ITAT dismissed the Departmental appeal filed by the DCIT, Central Circle-2, New Delhi, against Manish Periwal for the assessment year 2016-17, as the tax effect involved did not exceed the specified monetary limit of Rs. 50 lakhs, per the CBDT circulars.
Order Pronounced in the Open Court on 29.08.2022 by Shri Anil Chaturvedi, Accountant Member, and Shri Challa Nagendra Prasad, Judicial Member.
This ruling reinforces the importance of adhering to the monetary limits specified by the CBDT for filing appeals. It highlights the Tribunal’s stance on ensuring that appeals with tax effects below the specified thresholds are not pursued, thereby reducing the burden on judicial resources and focusing on more substantial tax disputes.
DCIT vs. Manish Periwal: Dispute Over Taxation Limits for Assessment Year 2016-17
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