PRINCIPAL COMMISSIONER OF INCOME TAX-9 vs. YUM RESTAURANTS (INDIA) PVT. LTD.,

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ITA/220/2018HC DelhiDLHC01032991201827 September 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 held that the appeal should be disposed of as not pressed. This decision was based on the Circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section). This circular stipulated a monetary limit of Rs. 1,00,00,000/- for the Department to pursue matters before the High Court. As the tax effect in the present appeal was Rs. 50,00,000/-, which falls below the specified monetary threshold, the Court accepted the Department's stance of not pressing the appeal. The ratio decidendi is that appeals falling below the prescribed monetary limit for tax effect, as per departmental circulars, will be treated as not pressed. The operative direction was to dispose of the appeal as not pressed, granting relief to the assessee by not adjudicating the merits.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-9 against Yum Restaurants (India) Pvt. Ltd. The assessment year(s) are not explicitly stated in the provided text. The order or action under challenge is the appeal itself, filed before the High Court. The amount in dispute, referred to as the tax effect, is Rs. 50,00,000/-. The procedural history is that the appeal was filed before the High Court. The judgment indicates that the Department decided not to press the appeal.

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed on the grounds of monetary limit prescribed by a circular? The Revenue, through Ms. Vibhooti Malhotra, Advocate, did not argue on the merits of the case. Instead, the appeal was disposed of based on a circular issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section) dated 08.08.2019. This circular fixed the monetary limit for pursuing matters before the High Court at Rs. 1,00,00,000/-. Since the tax effect in the present case was Rs. 50,00,000/-, which is below the prescribed limit, the Department considered the appeal not pressed.

AI-generated summary — verify with the full judgment below

$~11. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 220/2018 & CM APPL. 6783/2018

PRINCIPAL COMMISSIONER OF INCOME TAX-9 ..... Appellant

Through: Ms. Vibhooti Malhotra, Advocate

versus

YUM RESTAURANTS (INDIA) PVT. LTD., ..... Respondent

Through: Mr. Shivansh Pandya and Mr. Salil

Kapoor, Advocate.

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

O R D E R % 27.09.2019

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/- and in view of the fact that the tax effect in the present case is Rs.50,00,000/-, the present appeal is disposed of as not pressed.

VIPIN SANGHI, J

SANJEEV NARULA, J SEPTEMBER 27, 2019 N.Khanna

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