DCIT Vs Sahil Kohli (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), Delhi, dismissed an appeal filed by the Deputy Commissioner of Income Tax (DCIT) against an order passed by the Commissioner of Income Tax (Appeals) concerning the assessment year 2016-17 for Sahil Kohli. The primary reason for the dismissal was that the tax effect involved in the appeal was less than ₹60 lacs. This threshold is stipulated in the Central Board of Direct Taxes (CBDT) Circular No. 09 of 2024, dated September 17, 2024, which provides guidelines for the Revenue Department regarding the filing of appeals in cases with low tax implications.
The brief order issued by the ITAT explicitly states that the grievance raised by the Revenue indicated a tax effect below the prescribed limit of ₹60 lacs. Consequently, in adherence to the aforementioned CBDT circular, the ITAT deemed the appeal inadmissible. The order concluded by formally dismissing the Revenue’s appeal. This decision underscores the importance of the CBDT’s directives in streamlining tax litigation and focusing the Revenue’s resources on cases with more significant financial implications, thereby reducing the burden on the judicial system for matters falling below a certain monetary threshold.
FULL TEXT OF THE ORDER OF ITAT DELHI
The aforetitled appeal arising out of the order dated 22.09.2023 passed by the Learned Commissioner of Income Tax (Appeals), Delhi (for the sake of convenience, here in after referred in short as Ld. CIT(A)] by which the application filed by the Revenue/ appellant against the order dated 29.06.2021 passed by the Assessing Officer [(for the sake of convenience, here in after referred in short as Ld. AO)] for A.Y. 2016-17.
2. The grievance of the Revenue shows that the tax effect would be less than Rs.60 lacs, therefore, the present appeal filed by the Revenue is not admissible in the light of the CBDT Circular No. 09 of 2024 dated 17/09/2024. The appeal is accordingly dismissed.
3. In the result, the appeal filed by the revenue is accordingly dismissed.
Order pronounced in open Court on 17th January, 2025.
