DCIT, CIRCLE-4(2), NEW DELHI vs. CSV TECHNO SERVICES PVT. LTD., NEW DELHI

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ITA 2581/DEL/2022Status: DisposedITAT Delhi29 May 2023AY 2018-193 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as the tax effect was below the threshold limit prescribed by CBDT Circular No. 17 of 2019. The Revenue failed to demonstrate any exceptions to this circular.

What were the facts?

The Revenue filed an appeal against the NFAC's order concerning an addition of Rs. 4,49,191/- representing delayed payment of employees' PF and ESI contributions. The tax effect of this addition was Rs. 1,52,680/-.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to the tax effect being below the prescribed monetary limit.

AI-generated summary — verify with the full judgment below

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

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

Hearing: 18.05.2023Pronounced: 29.05.2023

PER SAKTIJIT DEY, JM: This is an appeal by the Revenue against order dated 30.08.2022 passed by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2018-19.

2.

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

3.

As could be seen from the grounds raised in column no. 10 and tax liability relating to such ground, the quantum of addition disputed by the Revenue in present appeal is to the tune of Rs.4,49,191/- 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.1,52,680/-. 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).

4.

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.

5.

In the result, the appeal is dismissed.

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

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