What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as the tax effect was below the prescribed threshold limit and no exceptions were demonstrated by the Revenue. Therefore, the appeal was dismissed.

The Revenue filed an appeal against an order concerning delayed payment of employees' contribution to Provident Fund and Employees State Insurance. The tax effect of the disputed amount was below the threshold limit for maintaining an appeal before the Tribunal.

What were the issues?

The primary issue was the maintainability of the appeal before the ITAT due to the tax effect being below the CBDT circular threshold. The Tribunal also considered whether any exceptions to the circular applied.

DCIT vs Biltech Building Elements Ltd… | ITAT Delhi 2023

Income Tax Appellate Tribunal, DELHI BENCH: ‘H’ NEW DELHI

Before: SHRI G.S. PANNU, HON’BLE & SHRI SAKTIJIT DEY

Hearing: 17.05.2023Pronounced: 29.05.2023

PER SAKTIJIT DEY, JM: This is an appeal by the Revenue against order dated 05.09.2022 passed by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2019-20.

When the appeal was called out, no one appeared on behalf of the assessee to represent the case, despite notice of hearing

ITA No.2580/De/2022 AY: 2019-20 issued through postal department. Therefore, we proceed to dispose of the appeal ex parte qua the assessee after hearing learned Departmental Representative and based on materials on record.

As could be seen from the grounds raised in column no. 10 and tax relating to such ground, the quantum of addition disputed by the Revenue in present appeal is to the tune of Rs.41,28,780/- representing delayed payment of employees contribution to Provident Fund (PF) and Employees State Insurance (ESI). According to Revenue’s own computation, the tax effect on the amount disputed by the Revenue works out to Rs.14,03,372/-. Thus, the tax effect on the amount disputed by the Revenue in the present appeal is below the threshold limit of Rs.50 lakhs for maintaining an appeal before the Tribunal in terms of Circular No. 17 of 2019, dated 8th August, 2019 issued by Central Board of Direct Taxes (CBDT).

Before us, the Revenue has failed to demonstrate that the appeal is protected by any of the exceptions to the extant circular issued by the CBDT. Thus, in our view, the present appeal is not maintainable. Accordingly, we dismiss the appeal.

ITA No.2580/De/2022 AY: 2019-20

In the result, the appeal is dismissed.

Order pronounced in the open court on 29th May, 2023

DCIT, CIRCLE-4(2), NEW DELHI vs. BILTECH BUILDING ELEMENTS LTD., NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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