THE COMMISSIONER OF INCOME TAX XVII vs. SOBER & SIMPLE CHITS P.LTD

ITA - 90 / 2008HC Delhi20 February 20081 pages

For Petitioner: RASHMI CHOPRA

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The primary reasoning was that since the tax effect in the case was Rs. 1,84,122/-, which is below the threshold of Rs. 4 lacs stipulated in CBDT Instruction No. 2 dated 24th October, 2005, no substantial question of law arises that would require adjudication for the benefit of the general public. While acknowledging that the question of law raised by the Revenue might be important, the Court found it insufficient to warrant interference given the low tax effect. The Court explicitly stated that the issues raised are left open to be decided in an appropriate case.

What were the facts?

The Revenue, Commissioner of Income Tax XVII, is aggrieved by an order dated 4th May, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Delhi Bench 'H'. The appeal pertains to Assessment Year 2003-04 and involves a tax effect of Rs. 1,84,122/-. The Revenue filed the appeal under Section 260A of the Income Tax Act, 1961. The High Court noted that as per CBDT Instruction No. 2 dated 24th October, 2005, appeals are ordinarily not to be filed where the tax effect is less than Rs. 4 lacs.

What were the issues?

1. Whether a substantial question of law arises for adjudication in this appeal, given the tax effect of Rs. 1,84,122/-. The Revenue contended that the question of law raised is important. The High Court considered the tax effect in relation to CBDT Instruction No. 2 dated 24th October, 2005, which generally discourages appeals below a certain tax threshold.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 90/2008 . THE COMMISSIONER OF INCOME TAX XVII ..... Appellant Through Ms. Rashmi Chopra, Adv. . versus . . . SOBER and SIMPLE CHITS P.LTD ..... Respondent Through . CORAM: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE V.B. GUPTA . O R D E R 20.02.2008 . The Revenue is aggrieved by an order dated 4th May, 2007 passed by the Income Tax Appellate Tribunal, Delhi Bench ?H? in ITA No. 544/Del/2006 relevant for the Assessment year 2003-04. At the outset, we may mention that the tax effect in this case is Rs.1,84,122/-. According to Instruction No.2 dated 24th October, 2005 issued by the Central Board of Direct Taxes, ordinarily an appeal under Section 260A of the Income Tax Act ought not to be filed where the tax effect is less than Rs.4 lacs. According to learned counsel for the Revenue the question of law that has been raised is important. While it may be so, we are of the view that since the tax effect in this case is not very high, no substantial question of law arises which would require adjudication for the benefit of the general public. . ITA 90/2008 Page 1 of 2 . We dismiss this appeal since no substantial question of law arises but the issues raised are left open to be decided in an appropriate case. . . . MADAN B. LOKUR,J . . . V.B. GUPTA, J FEBRUARY 20, 2008 rs . . . . . ITA 90/2008 Page 2 of 2 . . .

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