PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) - 2 vs. MIS VICTORY STRUCTURES PVT. LTD.

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ITA/1166/2017HC DelhiDLHC01429407201705 September 2019Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Delhi, in light of the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section), which sets the monetary limit for appeals before the High Court at Rs. 1,00,00,000/-, and considering that the tax effect in the present case is Rs. 29,97,300/-, disposed of the appeal as not pressed. The court did not decide the substantive issues of the appeal on their merits. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit, as per CBDT circulars, are to be considered not pressed or withdrawn by the department.

What were the facts?

The appellant, Principal Commissioner of Income Tax (Central) – 2, filed an appeal before the High Court of Delhi against an order concerning the respondent, M/s Victory Structures Pvt. Ltd. The appeal was filed for the assessment year(s) not explicitly stated in the judgment. The dispute pertains to the tax effect of Rs. 29,97,300/-. The procedural history leading to this appeal is not detailed, other than the filing of the present appeal by the revenue.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limit prescribed by the CBDT circular dated 08.08.2019? The Revenue, through its counsel Mr. Zoheb Hossain, did not explicitly argue on the merits of the case. Instead, the appeal was disposed of based on a subsequent circular issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section). The circular fixed the monetary limit for pursuing matters before the High Court at Rs. 1,00,00,000/-. The Revenue implicitly accepted that the tax effect in this case, Rs. 29,97,300/-, falls below this prescribed limit.

AI-generated summary — verify with the full judgment below

$~37. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1166/2017

PRINCIPAL COMMISSIONER OF

INCOME TAX (CENTRAL) – 2

..... Appellant

Through: Mr. Zoheb Hossain, Advocate.

versus

MIS VICTORY STRUCTURES PVT. LTD. ..... Respondent Through: Ms. Umang Luthra, Ms. Mekhala Benny and Mr. Kislaya Parashar, Advocates.

CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R % 05.09.2019

In the light of the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section), Government of India, which fixes the monetary limit in respect of tax effect, inter alia, before the High Court in which the Department could pursue the matter as Rs. 1,00,00,000/- and in view of the fact that the tax effect in the present case is Rs. 29,97,300/-, the present appeal is disposed of as not pressed.

VIPIN SANGHI, J

SANJEEV NARULA, J SEPTEMBER 05, 2019 N.Khanna

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