The case between the Assistant Commissioner of Income Tax (ACIT), Central Circle-28, New Delhi, and DPAG Infraprojects Pvt. Ltd, for the assessment year 2013-14, marked a significant application of updated tax appeal thresholds as outlined in CBDT Circular No. 17/2019.
Filed under ITA No. 1634/DEL/2019, this case addressed the tax liabilities of DPAG Infraprojects for the specified assessment year, with the final tribunal order being pronounced on August 23, 2019. This legal encounter at the Delhi Bench ‘AA’ of the Income Tax Appellate Tribunal underscored pivotal changes in the pursuit of tax-related litigations by the Revenue.
Justice P.P. Bhatt, President, and Shri G.S. Pannu, Vice President of the tribunal, presided over the case. The judgment was part of a broader directive that included multiple appeals where the tax effect was below the newly established threshold of Rs. 50 lakhs, thereby rendering them non-maintainable as per the latest circulars.
The hearing, initially set to discuss the substantial tax implications and related legal arguments, shifted focus towards the compliance with the CBDT’s revised thresholds for filing appeals. This shift is a result of the CBDT Circular No. 17/2019 dated August 8, 2019, which modified the monetary limits for filing appeals by the department, reflecting a strategic move towards reducing unnecessary litigation and focusing resources on higher value disputes.
Throughout the proceedings, the representatives of the Revenue were unable to present any evidence contrary to the stipulations set by the circular, leading to the dismissal of the appeal. This dismissal was in line with the tribunal’s recent trend of adhering to administrative guidelines aimed at streamlining tax governance and reducing the burden on the judicial system.
The tribunal also left open the possibility for the Revenue to request a recall of the dismissal, should it later establish that the tax effect involved exceeds the prescribed limits, or if it falls under any exceptions as outlined in the circulars.
This case not only highlights the tribunal’s compliance with the central tax authority’s guidelines but also sets a precedent for future tax disputes, potentially influencing how appeals are managed and adjudicated in light of financial thresholds and policy directives.
Resolution of Tax Dispute between ACIT and DPAG Infraprojects for AY 2013-14
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