THE PR. COMMISSIONER OF INCOME TAX -4 vs. GALGOTIA INFOTECH PVT. LTD.

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ITA/1001/2018HC DelhiDLHC01114120201814 September 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Delhi disposed of the appeal filed by the Revenue without examining or answering the issue/question raised. The Court recorded the submission of the Revenue's counsel that the tax effect was below Rs. 50,00,000/-, making it eligible for disposal under Circular No. 3/2018. The Court explicitly clarified that the issue/question raised in the appeal remains open. Liberty was granted to the Revenue to file an application for revival of the appeal if it is found that the case falls under an exception to the circular. The application for condonation of delay in re-filing was also treated as disposed of, to be considered only if a revival application is filed.

What were the facts?

This case involves an appeal filed by the Principal Commissioner of Income Tax-4 (the Revenue) against Galgotia Infotech Pvt. Ltd. (the Assessee). The appeal was filed before the High Court of Delhi. The Revenue's counsel stated that the tax effect in this appeal is below Rs. 50,00,000/-. Consequently, in accordance with Circular No. 3/2018 dated July 11, 2018, the Revenue requested that the appeal be disposed of without adjudicating the issue raised. The High Court noted that the issue/question raised in the appeal has been left open.

What were the issues?

1. Whether the appeal should be disposed of on the grounds of low tax effect, as per Circular No. 3/2018, without deciding the merits of the case? Assessee's Contentions: The judgment does not record any specific contentions from the Assessee. Revenue's Contentions: The Revenue contended that the tax effect involved in the appeal is below Rs. 50,00,000/-. Therefore, in terms of Circular No. 3/2018 dated July 11, 2018, the appeal may be disposed of without answering the issue/question raised. The Revenue sought to have the appeal dismissed on this procedural ground.

AI-generated summary — verify with the full judgment below

$~13 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1001/2018 & CM No.37589/2018

THE PR. COMMISSIONER OF INCOME TAX -4..... Appellant

Through: Mr. Ruchir Bhatia, Advocate

versus

GALGOTIA INFOTECH PVT. LTD.

..... Respondent

Through

CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR

O R D E R %

14.09.2018 Learned counsel for the appellant/Revenue states that the tax effect involved in this appeal is below Rs.50,00,000/- and hence, in terms of circular No.3/2018 dated 11.7.2018, the appeal may be disposed of, without answering the issue/question raised. It may be clarified that the issue/question raised has been left open.

Recording the aforesaid, the appeal is disposed of, without examining the issue/question raised. We also clarify that the issue/question is left open. We also grant liberty to the Revenue to file an application for revival of the present appeal, if it is found that the case is covered by an exception. In the aforesaid circumstances, we are not issuing notice on the application for condonation of delay in re-filing the appeal. The application will be considered, in case application for revival is filed. For present, applications will be treated as disposed of.

SANJIV KHANNA, J

CHANDER SHEKHAR, J SEPTEMBER 14, 2018/tp

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