THE PR. COMMISSIONER OF INCOME TAX -6 vs. MAGNETI MARAELLI POWERTRAIN INDIA PVT. LTD.

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ITA/127/2018HC DelhiDLHC01539603201714 November 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the appeal without examining the question/issue raised. The Court took on record the statement made by the learned counsel for the appellant/revenue that the tax effect in the present appeal is below Rs. 50 lacs. Consequently, in terms of Circular No. 3 of 2018 dated 11.07.2018, the appeal was disposed of without answering or examining the issue. The Court explicitly clarified that the issue/question of law has been left open. Liberty was granted to the respondent (Assessee) to file an application for revival of the appeal in case it is found that the matter is covered by an exception. The principle derived is that appeals with a tax effect below a certain threshold, as stipulated by revenue circulars, can be withdrawn or disposed of without adjudication on merits, preserving the right to revival under specific circumstances.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax - 6 (the Revenue) against Magneti Marelli Powertrain India Pvt. Ltd. (the Assessee). The assessment year(s) are not specified. The appeal challenges an order or action, the nature of which is not detailed. The tax effect in the present appeal is stated to be below Rs. 50 lacs. The procedural history involves the Revenue's counsel stating that due to the low tax effect, the appeal may be disposed of without answering the issue raised, as per Circular No. 3 of 2018 dated 11.07.2018. The High Court took this statement on record.

What were the issues?

1. Whether the appeal should be disposed of without answering the issue raised, given the tax effect is below Rs. 50 lacs, in terms of Circular No. 3 of 2018 dated 11.07.2018? (Question of law) Assessee's Contentions: Not recorded. Revenue's Contentions: The Revenue, through its learned counsel, stated that the tax effect in the appeal is below Rs. 50 lacs. Therefore, in terms of Circular No. 3 of 2018 dated 11.07.2018, the appeal may be disposed of without examining or answering the issue and question of law raised. The Revenue clarified that the issue/question of law has been left open.

AI-generated summary — verify with the full judgment below

$~4 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 127/2018 THE PR. COMMISSIONER OF INCOME TAX -6 ..... Appellant Through: Mr. Ruchir Bhatia, Sr. Standing Counsel with Mr. Sanampreet Singh, Adv. versus MAGNETI MARAELLI POWERTRAIN INDIA PVT. LTD. ..... Respondent Through: Mr. Aditya Vohra, Adv. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI O R D E R % 14.11.2018 Learned counsel for the appellant/revenue states that the tax effect in the present appeal is below Rs.50 lacs and hence, in terms of the Circular No.3 of 2018 dated 11.07.2018, the present appeal may be disposed of without answering/examining the issue and question raised. It may be clarified that the issue/question of law has been left open. Taking the statement on record, we dispose of the present appeal without examining the question/issue raised, which is left open. Liberty is granted to the respondent to file an application for revival of the appeal in case it is found that the matter is covered by an exception. SANJIV KHANNA, J. ANUP JAIRAM BHAMBHANI, J. NOVEMBER 14, 2018/uj

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