Case Number: ITA 772/DEL/2020
Appellant: Harish Mittal, New Delhi
Respondent: ITO, Ward-42(5), New Delhi
Assessment Year: 2014-15
Result: Dismissed due to low tax effect
Case Filed on: 2020-02-12
Order Type: Final Tribunal Order
Date of Order: 2022-07-20
Pronounced on: 2022-07-20
This article provides a comprehensive overview of the case Harish Mittal vs. ITO, New Delhi (ITA 772/DEL/2020), focusing on the legal arguments presented, the procedural aspects, and the final judgment. The case revolves around an appeal filed by Harish Mittal for the assessment year 2014-15, which was eventually dismissed due to the low tax effect involved, as per the guidelines issued by the Central Board of Direct Taxes (CBDT).
The appellant, Harish Mittal, represented by Kumar Piyush & Co., Chartered Accountants, filed an appeal against the order of the Commissioner of Income Tax (Appeals)–43, New Delhi, dated December 16, 2019. The appeal was filed on February 12, 2020, challenging the tax assessment for the year 2014-15.
The case was heard by the Delhi Bench ‘B’ of the Income Tax Appellate Tribunal, consisting of Shri Shamim Yahya, Accountant Member, and Shri Yogesh Kumar US, Judicial Member. The hearing took place on July 20, 2022, and the order was pronounced on the same day.
The appellant’s counsel, Ms. Gunjan Jain, argued that the tax effect involved in the appeal was below the prescribed limit of Rs. 50 lakhs, as fixed by the CBDT. She requested the dismissal of the appeal on the grounds of low tax effect.
The CBDT, through Circular No. 17/2019 dated August 8, 2019, instructed that appeals should not be preferred if the tax effect is less than Rs. 50,00,000/-. This circular has retrospective effect, meaning it applies to pending appeals as well. The aim of this guideline is to reduce litigation and focus resources on high-value cases.
The Tribunal reviewed the appeal and found that the tax effect was indeed below the threshold of Rs. 50 lakhs. The learned Senior Departmental Representative, Md. Gayasuddin Ansari, also conceded that the appeal involved a low tax effect. The Tribunal referred to the CBDT Circular and similar precedents, such as the case of Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)], to support their decision.
The Tribunal concluded that the appeal was not maintainable due to the low tax effect and dismissed it accordingly. The dismissal was pronounced in the open court on July 20, 2022. The Tribunal also noted that the appellant could seek recall of the order if the appeal is found to be maintainable at any stage for technical reasons.
The official order was as follows:
“We have heard both the parties and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the parties before the Tribunal, Hon’ble High Court and Hon’ble Supreme Court has been revised. In view of the CBDT Circular No.17/2019 dated 8th August, 2019 having retrospective effect as coordinate Bench of the Tribunal in case of Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019-TIOL-1556-ITAT-AHM dated 14th August, 2019 has already decided the issue as to the applicability of the captioned circular to the pending appeals in affirmative. We are of the considered view that the aforesaid appeal is not maintainable due to low tax effect i.e. less than Rs.50,00,000/- hence, the aforesaid appeal filed by the assessee is hereby dismissed having been become infructuous. However, in case, the present appeal is found to be maintainable at any stage for any technical reasons, the assessee shall be at liberty to seek recall of this order under relevant provisions of law.”
Order pronounced in the open court on: 20/07/2022.
Signed:
Shamim Yahya, Accountant Member
Yogesh Kumar US, Judicial Member
This case underscores the importance of understanding and adhering to the guidelines set by the CBDT regarding the filing of appeals based on the tax effect. Taxpayers and their representatives must ensure that the tax effect meets the prescribed limits to avoid dismissal of appeals on such grounds.
Harish Mittal vs. ITO, New Delhi: Case Filed on Low Tax Effect
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