THE PR. COMMISSIONER OF INCOME TAX -6 vs. MPS LTD.

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ITA/254/2018HC DelhiDLHC01499925201728 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 dismissed the appeal. The Court noted that the tax effect in the present appeal was Rs. 67,27,801/-. This amount was below the monetary limit of Rs. 1,00,00,000/- fixed by 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, for pursuing matters before the High Court. Therefore, in light of this circular, the appeal was dismissed. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit are not to be pursued by the Revenue before the High Court. No issues were expressly left undecided.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax - 6 (the Revenue) against MPS Ltd. (the Assessee). The assessment year(s) are not specified. The order or action under challenge is the Revenue's appeal to the High Court. The amount in dispute, referred to as the tax effect, is Rs. 67,27,801/-. The procedural history is that the Revenue filed the present appeal before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the tax effect? The Revenue argued that the appeal should be heard on merits. The Revenue relied on its instructions from the Assessing Officer regarding the tax effect. The Revenue did not explicitly state arguments against the applicability of the circular, but their pursuit of the appeal implies a contention that it should be considered. The judgment does not record specific arguments from the Assessee.

AI-generated summary — verify with the full judgment below

$~6 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 254/2018 THE PR. COMMISSIONER OF INCOME TAX -6 ..... Appellant Through: Mr. Ruchir Bhatia, Senior Standing Cousnel. versus MPS LTD. ..... Respondent Through: Mr. Piyush Kaushik, Advocate. CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MR. JUSTICE SANJEEV NARULA O R D E R % 28.11.2019 1. Mr. Ruchir Bhatia, learned senior standing counsel for the Appellant has taken instructions from the Assessing Officer and he states that the tax effect in the present appeal is Rs. 67,27,801/-. 2. In view of the above, the appeal is dismissed 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. 67,27,801/-. VIPIN SANGHI, J SANJEEV NARULA, J NOVEMBER 28, 2019/nk

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