THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 vs. J.C. BAMFORD EXCAVTORS LTD.

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ITA/212/2019HC DelhiDLHC01001692201820 November 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 dismissed the appeal filed by the Revenue. The Court noted that the appellant (Revenue) had filed an affidavit disclosing that the tax effect in the present appeal was Rs. 55,25,098/-, which is below the monetary limit of Rs. 1,00,00,000/-. This limit was fixed by a circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section), Government of India, for the pursuit of matters before the High Court. Based on this circular and the low tax effect, the Court found no reason to entertain the appeal. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit in the relevant CBDT circular are liable to be dismissed on that ground.

What were the facts?

The Commissioner of Income Tax – International Taxation -2 (the Revenue) filed an appeal before the High Court of Delhi against an order concerning J.C. Bamford Excavators Ltd. (the Assessee). The appeal was filed for the assessment year(s) not specified in the judgment. The Revenue submitted an affidavit stating that the tax effect in the present appeal was Rs. 55,25,098/-, which is below the monetary limit of Rs. 1,00,00,000/- prescribed by a circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section).

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed on the grounds of low tax effect, considering the circular dated 08.08.2019 issued by the CBDT. The Revenue argued that the tax effect in the appeal is Rs. 55,25,098/-, which is below the threshold of Rs. 1,00,00,000/- stipulated in the CBDT circular for pursuing appeals before the High Court. Therefore, the appeal ought to be dismissed on this administrative ground. The Assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

$~5. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 212/2019

THE COMMISSIONER OF INCOME TAX – INTERNATIONAL TAXATION -2

..... Appellant

Through: Mr. Zoheb Hossain, Advocate.

versus

J.C. BAMFORD EXCAVTORS LTD.

..... Respondent Through: Mr. Mayank Nagi, Ms. Husnal Syali Nagi and Mr. Pulkit Verma, Advocates.

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

O R D E R % 20.11.2019

The appellant has filed the affidavit which discloses that the tax effect in the present appeal is below Rs. 1 crore i.e. Rs. 55,25,098/-.

Accordingly, the present appeal is dismissed on account of low tax effect in terms of 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/-.

VIPIN SANGHI, J

SANJEEV NARULA, J NOVEMBER 20, 2019 kd

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