THE PR. COMMISSIONER OF INCOME TAX -6 vs. MODIPON LTD.

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ITA/1138/2018HC DelhiDLHC01114125201816 October 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the appeal filed by the Revenue without examining the issues/questions raised. The Court recorded the statement made by the Revenue's counsel that the tax effect in the appeal was below Rs. 50 Lacs and, in terms of Circular No. 3/2018, the appeal could be disposed of. The Court explicitly stated that the issues/questions raised were left open. Liberty was granted to the appellant/Revenue to file an application for revival of the appeal in case the matter was covered by an exception to the circular. No finding was given on the merits of the case.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax - 6, filed an appeal (ITA 1138/2018) against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is Modipon Ltd. There was a delay of 143 days in the re-filing of the appeal, which was condoned by the High Court. The Revenue's counsel stated that the tax effect in the appeal was below Rs. 50 Lacs. This statement was made in reference to Circular No. 3/2018 dated 11.07.2018, which provides guidelines for the Revenue regarding the filing of appeals based on tax effect.

What were the issues?

1. Whether the appeal filed by the Revenue should be disposed of without examining the issues raised, given that the tax effect is below Rs. 50 Lacs, as per Circular No. 3/2018? (Question of law). Assessee's Contention: The respondent-assessee did not oppose the Revenue's request to dispose of the appeal without examining the issues, implicitly agreeing to the application of the circular. Revenue's Contention: The tax effect in the present appeal is below Rs. 50 Lacs, and therefore, in terms of Circular No. 3/2018 dated 11.07.2018, the appeal may be disposed of without examining the issues/questions raised, which may be left open.

AI-generated summary — verify with the full judgment below

$~25 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1138/2018 & CM APPL.43556/2018

THE PR. COMMISSIONER OF INCOME TAX -6 ..... Appellant

Through: Mr. Ruchir Bhatia, Adv.

versus

MODIPON LTD.

..... Respondent Through: Mr. Santosh K. Aggarwal, Adv. with respondent in person

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

O R D E R %

16.10.2018 CM APPL.43556/2018 (for condonation ofdelay)

Delay of 143 days in re-filing of the appeal is not opposed by the learned counsel for the respondent-assessee. Application is accordingly allowed and delay is condoned.

ITA No.1138/2018 Learned counsel for the appellant/Revenue states that the tax effect in the present appeal is below Rs.50 Lacs and therefore, in terms of circular No. 3/2018 dated 11.07.2018, the appeal may be disposed of without examining the issues/questions raised which may be left open. Recording the aforesaid statement, the appeal is disposed of without examining the issues/questions raised which are left open. We also grant liberty to the appellant/Revenue to file application for revival in case

the matter is covered by an exception.

SANJIV KHANNA, J

CHANDER SHEKHAR, J OCTOBER 16, 2018/rk

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