Case Number: ITA 4917/DEL/2019
Appellant: ITO Ward-2(4), Gurgaon
Respondent: Matrix Engineering & Construction Co., Gurgaon
Assessment Year: 2015-16
Case Filed On: 2019-05-30
Order Type: Final Tribunal Order
Date of Order: 2019-08-28
Pronounced On: 2019-08-28
The case of ITO vs Matrix Engineering & Construction Co. (ITA 4917/DEL/2019) involves an appeal filed by the Income Tax Officer (ITO) against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], Gurgaon. The dispute centers around the tax effect for the assessment year 2015-16.
Matrix Engineering & Construction Co., engaged in construction activities, filed its return of income for the assessment year 2015-16. The ITO, Ward-2(4), Gurgaon, contested certain additions and disallowances made during the assessment, leading to the filing of this appeal.
The appellant, ITO, raised multiple grounds of appeal challenging the CIT(A)’s order. The key grounds included:
The arguments presented by both parties were heard by the Tribunal. The counsel for the appellant, ITO, highlighted issues related to the monetary thresholds and the tax effect involved in the case.
At the outset, the appellant’s representative argued that the tax effect involved warranted the appeal. However, the respondent’s counsel cited the Central Board of Direct Taxes (CBDT) Circular No. 17/2019 dated 08.08.2019, which revised the monetary limits for filing appeals, raising the threshold to Rs. 50,00,000/- for appeals before the Income Tax Appellate Tribunal (ITAT).
The Tribunal noted that the tax effect in the present case was below the revised threshold as per the CBDT’s circular, rendering the appeal non-maintainable.
After considering the arguments and reviewing the CBDT’s circular, the Tribunal concluded that the appeal filed by the ITO was not maintainable due to the tax effect being below the specified limit. The appeal was thus dismissed.
Order Pronounced: August 28, 2019
By:
Shri H.S. Sidhu, Judicial Member
Shri Anadee Nath Misshra, Accountant Member
Copy forwarded to:
Assistant Registrar
ITO vs Matrix Engineering & Construction Co. – ITA 4917/DEL/2019: Tax Effect Dispute
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