DIRECTOR OF INCOME TAX vs. KHETRI TRUST

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ITA/1048/2009HC DelhiDLHC01101000200901 October 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 disposed of the appeal without examining the issue or question raised. The Court recorded the submission of the learned Senior Standing Counsel for the Revenue that the tax effect was below Rs. 50,00,000/- and, in terms of Circular No. 3/2018, the appeal could be disposed of on that basis. The Court clarified that the issue/question was left open. Liberty was granted to the Revenue to file an application for revival of the appeal if it was found that the case was covered by an exception to the circular. The ratio decidendi is that appeals with a low tax effect, as defined by the relevant circular, can be disposed of without adjudication on merits, subject to specific conditions and liberty for revival.

What were the facts?

The appeal was filed by the Director of Income Tax (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is Khetri Trust. The assessment year(s) are not specified in the provided text. The Revenue stated that the tax effect involved in the appeal was below Rs. 50,00,000/-. In terms of Circular No. 3/2018 dated July 11, 2018, the Revenue requested the appeal be disposed of without answering the issue raised. The High Court recorded this submission.

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 substantive issue. The Revenue argued that the tax effect was below Rs. 50,00,000/-, and therefore, in accordance with Circular No. 3/2018, the appeal should be disposed of without examining the issue. The judgment does not record any arguments from the assessee on this procedural point.

AI-generated summary — verify with the full judgment below

$~26 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1048/2009

DIRECTOR OF INCOME TAX

..... Appellant

Through : Mr.Asheesh Jain, Sr.Standing Counsel with

Mr.Shahrukh Ejar, Advocate.

versus

KHETRI TRUST

..... Respondent

Through : Mr.Piyush Kaushik, Advocate.

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

O R D E R %

01.10.2018

Learned Senior Standing 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. Recording the aforesaid, the appeal is disposed of, without examining the issue/question raised. We 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.

SANJIV KHANNA, J.

CHANDER SHEKHAR, J. OCTOBER 01, 2018/sa

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