Case Number: ITA 5888/DEL/2019
Appellant: ITO, Ward-8(2), New Delhi
Respondent: Empower Manpower Solutions P. Ltd, New Delhi
Assessment Year: 2013-14
Case Filed On: 2019-07-05
Order Type: Final Tribunal Order
Date of Order: 2019-09-30
Pronounced On: 2019-09-30
Summary:
The case of ITO vs Empower Manpower Solutions P. Ltd, New Delhi pertains to a tax dispute for the assessment year 2013-14. The appellant, Income Tax Officer (ITO), Ward-8(2), New Delhi, contested the tax demand raised against Empower Manpower Solutions P. Ltd. The case was subsequently brought before the Income Tax Appellate Tribunal (ITAT) for resolution.
Background:
Empower Manpower Solutions P. Ltd, located in New Delhi, was involved in a tax dispute with the Income Tax Department regarding the assessment year 2013-14. The primary issue was the tax demand raised by the ITO, which the company sought to contest through the legal process.
Grounds of Appeal:
Tribunal Proceedings:
During the hearing, it was brought to the attention of the tribunal that the Central Board of Direct Taxes (CBDT) had issued Circular No. 17/2019 on 08th August 2019. This circular stipulated that the revenue would not prefer any appeal before the tribunal if the tax effect was less than Rs. 50 lakhs. The tribunal reviewed the circular and its applicability to the pending appeals.
The tribunal noted that the CBDT circular was intended to reduce litigation and streamline the process by setting a monetary threshold for filing appeals. The tribunal also considered the arguments from the department’s representative, who contended that the circular should not apply retrospectively to pending appeals.
Tribunal’s Decision:
After reviewing the relevant material and hearing the arguments from both sides, the tribunal concluded that the CBDT Circular No. 17/2019 should apply to all pending appeals as well. The tribunal referenced similar cases where the circular was applied to pending appeals, thus setting a precedent for this case.
The tribunal acknowledged that the tax effect in the present appeal was below Rs. 50 lakhs. Therefore, in accordance with the CBDT circular, the appeal filed by the revenue was deemed not maintainable. The tribunal provided the revenue with the liberty to file a miscellaneous application with supporting evidence if any exceptions mentioned in the circular were applicable to the case.
Conclusion:
In conclusion, the tribunal dismissed the appeal filed by the ITO, Ward-8(2), New Delhi, against Empower Manpower Solutions P. Ltd. The tribunal ruled that the appeal was not maintainable as the tax effect was below the monetary threshold set by the CBDT Circular No. 17/2019.
Order Pronouncement:
Order was pronounced in the open court on 30th September 2019.
—
(H.S. SIDHU)
JUDICIAL MEMBER
(PRASHANT MAHARISHI)
ACCOUNTANT MEMBER
Copy forwarded to:
ITO vs Empower Manpower Solutions P. Ltd, New Delhi – Tax Dispute for Assessment Year 2013-14
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