THE PR. COMMISSIONER OF INCOME TAX, FARIDABAD vs. M/S MANSHA BUILDERS AND CONTRACTORS P. LTD

Facts

The Revenue, identified as the Principal Commissioner of Income-Tax Faridabad, filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal, Delhi Bench 'E', New Delhi. The appeal was filed with a delay of 4 days, and a further delay of 47 days in re-filing, both of which were condoned by the High Court. The amount in dispute in the appeal was Rs. 3,30,960/-. The Revenue's counsel acknowledged that the tax effect was below the monetary limits prescribed by CBDT Circular No. 3/2018 dated 11.07.2018.

Held

The High Court allowed the Revenue's application to withdraw the appeal. The court noted that the Revenue's counsel did not dispute that the tax effect of Rs. 3,30,960/- was below the monetary limits stipulated by CBDT Circular No. 3/2018. Consequently, the Revenue sought permission to withdraw the appeal. The High Court granted this permission, dismissing the appeal as withdrawn. Crucially, the legal issues claimed by the Revenue were expressly left open for adjudication in an appropriate case, and liberty was granted to the Revenue to file an application for revival if circumstances warranted. No decision was made on the merits of the case.

Key Issues

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by CBDT Circular No. 3/2018, given the tax effect of Rs. 3,30,960/-? (Question of law) Contentions: Assessee: No specific contentions recorded for the assessee. Revenue: The Revenue conceded that the tax effect involved in the appeal was less than the monetary limits fixed by Circular No. 3/2018. The Revenue sought permission to withdraw the appeal in view of this circular and prayed for liberty to file an application for revival if something survives.