COMMISSIONER OF INCOME TAX vs. M/S DCM FINANCIAL SERVICES LTD

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ITA/1545/2006HC DelhiDLHC01061340200620 December 2019Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi disposed of the appeal. The decision was based on the tax effect of the appeal, which was stated to be Rs. 84.73 Lakhs. This amount was below the monetary limit of Rs. 1 crore prescribed by the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The circular specifies that the Department can pursue matters before the High Court only if the tax effect exceeds Rs. 1,00,00,000/-. Since the tax effect in this appeal was below the stipulated limit, the appeal was disposed of without a decision on the merits of the case. No specific issue was decided on merits, and no operative directions were issued other than the disposal of the appeal.

What were the facts?

The appellant, Commissioner of Income Tax, filed an appeal before the High Court of Delhi against an order concerning M/s DCM Financial Services Ltd. The assessment year(s) are not specified in the judgment. The appeal was filed by the Revenue. The tax effect in this matter was stated to be below Rs. 1 crore, specifically Rs. 84.73 Lakhs as per a letter dated 20.11.2019 from the ACIT, Judicial-2, New Delhi. The High Court was considering the appeal based on the monetary limit prescribed by a circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the tax effect and the prevailing monetary limits set by the CBDT circular dated 08.08.2019? (Question of law) Assessee's Contention: Not recorded as the appeal was disposed of on the tax effect. Revenue's Contention: The Revenue, through its counsel, stated that the tax effect in the matter is below Rs. 1 crore. Relying on the CBDT circular dated 08.08.2019, which sets a monetary limit of Rs. 1,00,00,000/- for pursuing matters before the High Court, the Revenue submitted that the present appeal should be disposed of.

AI-generated summary — verify with the full judgment below

$~10. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1545/2006

COMMISSIONER OF INCOME TAX

..... Appellant

Through: Mr. Ruchir Bhatia, Adv.

versus

M/S DCM FINANCIAL SERVICES LTD ..... Respondent

Through:

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. 84.73 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

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