COMMISSIONER INCOME TAX CENTRAL-I vs. M/S SEASONS TEXTILES LTD.

ITA - 237 / 2009HC Delhi13 September 20182 pages

For Petitioner: SUBHASH BANSAL

AI SummaryDismissed

What did the High Court hold?

The High Court held that in terms of Circular No. 3/2018, dated 11.07.2018, the substantial question of law need not be answered as the tax effect in both appeals is below Rs. 50,00,000/-. Consequently, the appeals were disposed of without answering the substantial question of law, which was expressly left open. The Court granted liberty to the Revenue to file an application for revival of the appeals if they are covered by any exceptions to the circular. No decision was made on the merits of the case.

What were the facts?

These are two appeals filed by the Revenue, Commissioner of Income Tax, Central-I and Central-L, against M/s Seasons Textiles Ltd. The appeals challenge orders passed by the Income Tax Appellate Tribunal (ITAT). The tax effect in both appeals is stated to be below Rs. 50,00,000/-. The appeals were filed before the High Court of Delhi.

What were the issues?

1. Whether the appeals filed by the Revenue should be dismissed on the grounds that the tax effect is below the threshold stipulated in Circular No. 3/2018 dated 11.07.2018, and if so, whether the substantial question of law needs to be answered. The Revenue contended that in view of Circular No. 3/2018, the substantial question of law need not be answered as the tax effect is below Rs. 50,00,000/-. The Revenue sought liberty to file an application for revival of the appeals in case they fall under any exceptions to the circular.

AI-generated summary — verify with the full judgment below

$~R2&3 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 94/2009 COMMISSIONER OF INCOME TAX, CENTRAL-L.... Appellant Through: Mr. Ashok Manchanda, Senior Standing Counsel versus M/S SEASONS TEXTILES LTD. Respondent Through WITH + ITA 237/2009 COMMISSIONER OF INCOME TAX, CENTRAL-I Appellant Through: Mr. Zohaib Hossain, Senior Standing Counsel with Mr. Deepak Anand, Junior Standing Counsel versus M/S SEASONS TEXTILES LTD. Respondent Through CORAM: HON'BLE MR. JUSTICE SANHV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR ORDER % 13.09.2018 In these two appeals by the Revenue, the tax effect is below Rs.50,00,000/-. Hence, in terms of circular No.3/2018, dated 11.7.2018, the substantial question of law need not be answered. In view of the aforesaid position, the appeals are disposed of, without answering the substantial question of law, which is also left open. However, 2018:DHC:8294-DB

n. we grant liberty to the Revenue to file an application for revival of the appeals, in case the appeals are covered by any exceptions. SANJIV KHANNA, J. CHAIvlteR^EKHAR, J. SEPTEMBER 13,2018 tp 2018:DHC:8294-DB

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