On November 27, 2020, the Income Tax Appellate Tribunal in Delhi issued a final judgment in the case of Deputy Commissioner of Income Tax, Central Circle, Ghaziabad versus KDP Infrastructure Pvt. Ltd., New Delhi, under case number ITA 4880/DEL/2019. This case, related to the assessment year 2015-16, was notably pronounced through a video conference due to the logistical constraints presented by the ongoing pandemic.
The appeal was filed by the Deputy Commissioner of Income Tax, Central Circle, Ghaziabad, challenging the order of the CIT(A), Kanpur, which pertained to multiple assessment years including 2010-11, 2012-13, 2013-14, and 2015-16. All these appeals were consolidated due to their association with the same assessee, leading to a common adjudication for sake of convenience.
The tribunal’s proceedings focused on several grounds of appeal raised by the revenue, most notably the rejection of the appeal for the assessment year 2015-16. The tribunal pointed out that the appeal was not maintainable under the provisions of the CBDT Circular No. 17/2019, dated August 8, 2019, which restricts filing of appeals by the revenue in cases where the tax effect does not exceed Rs. 50 lakhs. Consequently, the appeal was dismissed based on the circular, emphasizing a policy to reduce litigation in tax matters.
During the hearing, additional evidences were brought forward by the assessee, which were admitted under Rule 46A of the Income Tax Rules, 1962. This was contested by the revenue but the tribunal noted that all due procedures were followed, giving the Assessing Officer an adequate opportunity to examine the evidences, hence, no violation of natural justice was found.
The tribunal’s decision to dismiss the appeal based on the low tax effect underlines the ongoing efforts towards judicial efficiency and reduction of unnecessary litigation in the tax domain. The decision reaffirms the tribunal’s commitment to uphold administrative circulars aimed at streamlining tax litigation. This judgment sets a precedent for similar cases, where appeals with low tax implications may be deemed non-maintainable, thereby saving judicial time and resources for more substantial disputes.
The tribunal concluded the proceedings by dismissing the revenue’s appeal, reiterating that compliance with CBDT circulars is paramount in deciding the maintainability of such appeals. The detailed examination of additional evidences and adherence to procedural fairness were highlighted as key factors in the tribunal’s decision-making process.
Dismissal of Tax Appeal in ITA 4880/DEL/2019 Due to Low Tax Effect
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