PRINCIPAL COMMISSIONER OF INCOME TAX-7 vs. PANCHSHILA HOSPITALITY VENTURES LTD.

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ITA/208/2018HC DelhiDLHC01008619201812 September 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal should be disposed of without examining the issue or question raised, based on the statement made by the learned counsel for the Revenue regarding the tax effect and the applicability of Circular No. 3/2018. The Court recorded the Revenue's statement and disposed of the appeal accordingly. The issue/question raised in the appeal was left open. The Court also clarified that if the appeal falls under an exception to the circular, the appellant would be at liberty to file an application for revival. The ratio decidendi is that appeals with a tax effect below a certain threshold, as per the Revenue's circular, can be disposed of without merits, provided the Revenue so requests and the conditions of the circular are met. No specific relief was granted or denied on the merits of the case.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-7 (Revenue) against Panchshila Hospitality Ventures Ltd. (Assessee). The assessment year(s) are not specified in the judgment. The order or action under challenge is the appeal itself, filed before the High Court. The procedural history is that the Revenue's counsel stated that the tax effect in the appeal is below Rs. 50,00,000/-. In view of Circular No. 3/2018 dated 11.07.2018, the Revenue requested that the appeal be disposed of without examining the issue raised. The amount in dispute is not explicitly stated, other than the tax effect being below Rs. 50,00,000/-.

What were the issues?

The Tribunal (High Court) had to decide whether to dispose of the appeal based on the tax effect being below the threshold specified in the Revenue's circular. The Revenue argued that in view of Circular No. 3/2018, dated 11.07.2018, the appeal, having a tax effect below Rs. 50,00,000/-, should be disposed of without examining the issue. The judgment does not record any argument from the Assessee's side regarding this specific point.

AI-generated summary — verify with the full judgment below

$~1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 208/2018

PRINCIPAL COMMISSIONER OF INCOME TAX-7..... Appellant

Through: Mr. Sanjay Kumar, Advocate

versus

PANCHSHILA HOSPITALITY VENTURES LTD...... Respondent

Through: Mr. Anil Makhija, Advocate

CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR

O R D E R %

12.09.2018

Learned counsel for the Revenue states that the tax effect in the present appeal is below Rs.50,00,000/- and in view of circular No.3/2018, dated 11.7.2018, the present appeal may be disposed of, without examining the question/issue raised. It may be clarified that the issue/question is left open.

Recording the said statement, the appeal is disposed of, without examining the issue/question raised, which is left open. We also clarify that in case the present appeal is covered by an exception, the appellant would be at liberty to file an application for revival.

SANJIV KHANNA, J

CHANDER SHEKHAR, J SEPTEMBER 12, 2018/tp

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