THE COMMISSIONER OF INCOME TAX vs. M/S GOETZE INDIA LTD.

PDF · subscribers
ITA/1045/2005HC DelhiDLHC01058891200501 March 2017Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal was not maintainable because the tax effect was below the prescribed monetary limit of ₹20,00,000 as per CBDT Circular No. 21/2015. The Court acknowledged the retrospective application of the circular to pending appeals. The principle derived is that appeals with a tax effect below the stipulated threshold, as per CBDT circulars, are not to be prosecuted. The Court dismissed the appeal, but clarified that the Revenue could seek restoration if the Assessing Officer found any exception under the circular. No specific issue was left undecided, as the appeal was disposed of on procedural grounds.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax (the Revenue) against M/s Goetze India Ltd. (the Assessee). The appeal was filed before the High Court of Delhi. The High Court noted that the tax effect in the present appeal was below the monetary limit of ₹20,00,000 prescribed by Circular No. 21/2015 of the Central Board of Direct Taxes (CBDT). This circular stipulated that pending appeals below specified tax limits could be withdrawn or not pressed. The appeal had been pending before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the tax effect is below the monetary limit prescribed by CBDT Circular No. 21/2015? The Revenue, through its counsel Mr. Ruchir Bhatia, argued that the appeal was filed prior to the issuance of the circular and that the circular itself stated it would apply retrospectively to pending appeals. The Assessee was not represented, and no arguments were recorded on its behalf.

AI-generated summary — verify with the full judgment below

$~60 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 1045/2005

THE COMMISSIONER OF INCOME TAX ..... Appellant

Through: Mr. Ruchir Bhatia, Advocate.

versus

M/S GOETZE INDIA LTD.

..... Respondent

Through: None.

CORAM: HON’BLE MR. JUSTICE S. RAVINDRA BHAT HON’BLE MR. JUSTICE NAJMI WAZIRI

O R D E R %

01.03.2017

This Court had framed a question of law for consideration in this appeal. Given its pendency vide Circular No. 21/2015 dated 10.12.2015, the Central Board of Direct Taxes (CBDT) spelt out the monetary limits beyond which appeals could be preferred before the Income Tax Appellate Tribunal (ITAT), High Courts and SLP before the Supreme Court respectively. Clause 10 of the Circular reads as below:- “10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

This Court notices that the tax effect i.e. upon the assessed income, is

below the prescribed limit of `20,00,000/-. The present appeal cannot be, therefore, prosecuted and is no longer maintainable. It is, however, clarified that in the event, the Assessing Officer discerns any exception in terms of the said Circular, it is open to the Revenue to seek restoration of the concerned appeal by an appropriate application. The appeal is dismissed but in the above terms.

S. RAVINDRA BHAT, J

NAJMI WAZIRI, J MARCH 01, 2017 /vikas/

Recent GST High Court judgments

Search GST case law →