Case Number: ITA 1443/DEL/2020
Appellant: ITO Ward-16(1), New Delhi
Respondent: M V Builders & Developers Pvt Ltd, New Delhi
Assessment Year: 2015-16
Case Filed On: 2020-07-29
Order Type: Final Tribunal Order
Date of Order: 2022-08-02
Date of Pronouncement: 2022-08-02
The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘E’ heard the appeal filed by the Income Tax Officer (ITO) Ward-16(1), New Delhi, against MV Builders & Developers Pvt Ltd for the assessment year 2015-16. The appeal was preferred against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] – 37, New Delhi, dated 14.02.2020.
The primary grievance of the revenue was related to the tax assessment and the conclusions drawn by the CIT(A). However, the specific grounds of appeal are not detailed in the provided order excerpt.
During the proceedings, it was noted that the tax effect in the dispute was less than Rs. 50 lakhs. This observation is crucial because, according to the Central Board of Direct Taxes (CBDT) Circular No. 17/2019 dated 08.08.2019, appeals with a tax effect below this threshold are not to be pursued by the revenue authorities.
The ITAT, represented by Sh. N. K. Billaiya, Accountant Member, and Sh. Yogesh Kumar US, Judicial Member, concluded that the appeal must be dismissed in light of the aforementioned CBDT circular. The tribunal dismissed the appeal, granting the revenue the liberty to approach the tribunal again if they determine that the tax effect exceeds Rs. 50 lakhs as per the provisions of the law.
The order was pronounced in the open court on 02.08.2022, and the appeal was thus dismissed.
The dismissal of this appeal underscores the importance of adhering to the guidelines set forth by the CBDT, particularly regarding the monetary thresholds for filing appeals. This case reaffirms the procedural compliance required from the revenue authorities in pursuing tax disputes.
The final judgment is a reminder for taxpayers and tax professionals to be aware of such thresholds and guidelines to ensure that resources are utilized efficiently in the resolution of tax disputes.
The ITAT’s decision in this case is aligned with the broader objective of reducing unnecessary litigation and ensuring that only substantial tax disputes are brought before the appellate authorities.
ITA 1443/DEL/2020: ITO vs. MV Builders – Tax Appeal Dismissed Due to Low Tax Effect
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