COMMISSIONER OF INCOME TAX DEL vs. GOODWILL INDIA

PDF · subscribers
ITA/142/2007HC DelhiDLHC01029012200720 December 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 disposed of the appeal. The decision was based on the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular stipulated a monetary limit of Rs. 1,00,00,000/- for the Department to pursue matters before the High Court. The Court noted that the tax effect in the present appeal was Rs. 57.05 Lakhs, which was below the permissible limit. Therefore, in light of the circular and the stated tax effect, the appeal was disposed of. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit, as per CBDT circulars, are to be disposed of without a decision on the merits of the case.

What were the facts?

This matter concerns an appeal filed by the Commissioner of Income Tax (Appellant) against the respondent, Goodwill India. The appeal was filed before the High Court of Delhi. The assessment year(s) are not explicitly stated in the provided text. The procedural history indicates that the appeal was filed, and subsequently, a submission was made regarding the tax effect. The tax effect in this matter was stated to be below Rs. 1 crore, specifically Rs. 57.05 Lakhs, as per a letter dated 20.11.2019 from the ACIT, Judicial-2, New Delhi. This was in light of a circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes.

What were the issues?

The primary issue before the High Court was whether the appeal filed by the Revenue should be entertained, given the monetary limit prescribed by a circular for pursuing appeals. The Revenue, through its counsel, stated that the tax effect in the matter was below Rs. 1 crore. This was in accordance with the circular dated 08.08.2019, which set the monetary limit for the Department to pursue matters before the High Court at Rs. 1,00,00,000/-. The Revenue's contention was that since the tax effect of Rs. 57.05 Lakhs was below this limit, the appeal should be disposed of. The judgment does not record any specific arguments from the Assessee (Respondent) on this point, other than their presence through counsel.

AI-generated summary — verify with the full judgment below

$~11. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 142/2007

COMMISSIONER OF INCOME TAX DEL ..... Appellant

Through: Mr. Zoheb Hossain, Adv.

versus

GOODWILL INDIA

..... Respondent Through: Mr. Arta Trana Panda and Ms. Gargi Sethee, Advs.

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

O R D E R % 20.12.2019

Mr. Bhatia, on instructions, states that the tax effect in this matter is below Rs. 1 crore. 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/-; the tax effect of Rs. 57.05 Lakhs as mentioned in the letter dated 20.11.2019 issued by ACIT, Judicial-2, New Delhi, the tax effect in the present appeal being below the permissible tax effect limit, the present appeal is disposed of.

VIPIN SANGHI, J

SANJEEV NARULA, J DECEMBER 20, 2019/N.Khanna

Recent GST High Court judgments

Search GST case law →