This document provides an in-depth analysis of the case between JCIT (OSD), Central Circle-1, Noida, and NM Buildwell Pvt Ltd for the assessment year 2013-14, highlighting the principles and judicial reasoning that led to the dismissal based on CBDT’s tax effect threshold.
The case pertains to appeals filed by the revenue against the order dated 16.11.2018 passed by the CIT(A)-IV, Kanpur, concerning the assessment year 2013-14. The central issue was whether the appeals fall within the threshold of tax effect as prescribed by the latest CBDT circulars.
During the proceedings, it was noted that the tax effect involved was below Rs. 50 lakhs, which is less than the limit set by CBDT Circular No. 17/2019 dated 08.08.2019, thus questioning the maintainability of the revenue’s appeal.
The tribunal, led by Ms. Suchitra Kamble, Judicial Member, and Shri R.K. Panda, Accountant Member, dismissed the appeals citing the low tax effect and the applicability of the circulars, including subsequent clarifications that apply these thresholds retroactively to pending appeals.
The dismissal of these appeals underlines the importance of administrative guidelines in managing litigation and the judiciary’s role in enforcing these guidelines to prevent frivolous litigation in tax matters.
The case underscores the judiciary’s support for administrative measures aimed at reducing unnecessary legal proceedings and highlights the evolving landscape of tax litigation in India.
Detailed Review: ITA 993/DEL/2019 – JCIT vs NM Buildwell Pvt Ltd for AY 2013-14
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