This case involves ITA No. 4898/DEL/2019 where the Assistant Commissioner of Income Tax, Circle-26(2), New Delhi filed an appeal against Shiv Bhargava for the Assessment Year 2009-10. The appeal was ultimately withdrawn by the revenue following a change in monetary limits set by the CBDT.
The appeal was initially lodged due to disagreements over tax assessments. However, following the issuance of CBDT Circular No.17/2019 on August 8, 2019, which revised the monetary thresholds for filing appeals, the Revenue reassessed their position.
The Circular raised the monetary limit for filing appeals to the Income Tax Appellate Tribunal to Rs. 50 lakhs. Consequently, the tax effect in the present case being below this threshold, the Department decided to withdraw the appeal in compliance with the new guidelines.
The case was heard by a bench comprising Justice P.P. Bhatt and Shri G.S. Pannu. Without delving into the merits of the case, the appeal was dismissed as not pressed due to the non-conformance with the revised limits prescribed by the CBDT Circular.
This decision underscores the impact of administrative guidelines on the litigation strategy of tax authorities. It also highlights the ongoing efforts to reduce litigation in cases where the cost of recovery would potentially exceed the benefits.
Revenue Withdraws Appeal Due to CBDT Circular in ITA 4898/DEL/2019
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