THE COMMISSIONER OF INCOME TAX vs. SUNEETA SETH

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ITA/136/2006HC DelhiDLHC01061134200629 August 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi held that the appeals filed by the Revenue could not be proceeded with. The primary reason for this decision was the Central Board of Direct Taxes (CBDT) Circular No. 3/2018, dated July 11, 2018. This circular stipulates that appeals with a tax effect below ₹50 lakh should not be filed or prosecuted by the Revenue. Since the tax effect in all the present appeals was stated to be lower than this prescribed limit, the Court found no basis to continue with them. Consequently, all the appeals were dismissed on the ground of lower tax effect. No decision was made on the merits of the substantive issues that might have arisen in these appeals.

What were the facts?

These are appeals filed by the Revenue (Commissioner of Income Tax) against orders concerning various assessees: Ramesh Suri, M/s Hind Industries Ltd., Suneeta Seth, and Shiv Nadar. The appeals were filed before the High Court of Delhi. The specific assessment years and the amounts in dispute are not explicitly stated for each case. However, it is mentioned that the tax effect in all these appeals is lower than ₹50 lakh. The procedural history involves the Revenue filing these appeals against the orders passed by the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the appeals filed by the Revenue can be proceeded with, given that the tax effect is below the threshold stipulated by CBDT Circular No. 3/2018. Assessee's Contention: Not applicable as the judgment is based on a procedural ground raised by the court/revenue. Revenue's Contention: The Revenue's appeals are to be dismissed as the tax effect in each appeal is lower than ₹50 lakh, which is the minimum limit prescribed by the Central Board of Direct Taxes (CBDT) Circular No. 3/2018 for filing and prosecuting appeals. This circular mandates that appeals with a tax effect below ₹50 lakh should not be filed or pursued.

AI-generated summary — verify with the full judgment below

$~48, 49, 51 & 57 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 804/2005

THE COMMISSIONER OF INCOME TAX ..... Appellant

versus

RAMESH SURI

..... Respondent

ITA 816/2005

COMMISSIONER OF INCOME TAX DEL ..... Appellant

versus

M/S HIND INDUSTRIES LTD.

..... Respondent

ITA 136/2006

THE COMMISSIONER OF INCOME TAX ..... Appellant

versus

SUNEETA SETH

..... Respondent

ITA 1268/2007

COMMISSIONER OF INCOME TAX DELHI ..... Appellant

versus

SHIV NADAR

..... Respondent

Present: Mr. Zoheb Hossain, Sr. Standing Counsel with Mr. Deepak Anand, Jr. Standing Counsel for appellant. Mr. Prakash Kumar, Advocate for respondent in Item No.48. Mr. M.P. Rastogi and Mr. K.N. Ahuja, Advocates for respondent in Item No.49. Ms. Kavita Jha, Advocate for respondents in Item No.51 & 57.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

29.08.2018

It is stated that these appeals by the Revenue involve a tax effect which is lower than `50 lac and consequently cannot be proceeded due to the Circular No.3/2018 dated 11.07.2018 of the Central Board of Direct Taxes. The tax effect in these appeals is lower than the limit prescribed for filing and prosecuting appeals by the Revenue i.e. `50 lac. Consequently, these appeals are dismissed on account of the lower tax effect.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J AUGUST 29, 2018 nn

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