COMMISSIONER OF INCOME TAX DEL vs. PUSHPA MARWAH

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ITA/260/2005HC DelhiDLHC01059231200509 January 2017Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeals could not be prosecuted and were no longer maintainable because the tax effect was below the prescribed limit of ₹20,00,000/- as per CBDT Circular No. 21/2015. The reasoning was that Clause 10 of the circular explicitly stated that pending appeals below the specified tax limits may be withdrawn or not pressed. The court dismissed the appeals on this ground. However, it clarified that if the Assessing Officer identified any exceptions under the circular, the Revenue could seek restoration of the appeals through an appropriate application. No specific issue was left undecided; the appeals were disposed of based on the circular's applicability.

What were the facts?

This case involves appeals filed by the Commissioner of Income Tax (Revenue) against an order concerning Pushpa Marwah (Assessee). The appeals were pending before the High Court of Delhi. The procedural history relevant to the decision is the issuance of Circular No. 21/2015 by the Central Board of Direct Taxes (CBDT). This circular specified monetary limits for preferring appeals before various judicial forums, including the High Court. Clause 10 of this circular stated that pending appeals below the specified tax limits could be withdrawn or not pressed. The High Court noted that the tax effect in the present appeals was below the prescribed limit of ₹20,00,000/-.

What were the issues?

1. Whether pending appeals before the High Court, where the tax effect is below the monetary limit prescribed by CBDT Circular No. 21/2015, are maintainable. Assessee's Contention: Not recorded. Revenue's Contention: The Revenue, represented by Mr. Zoheb Hossain, Sr. Standing Counsel, was present. However, no specific arguments were recorded in the judgment regarding the maintainability of the appeals based on the circular. The court's decision appears to be based on the application of the circular itself.

AI-generated summary — verify with the full judgment below

$~26 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 260/2005

COMMISSIONER OF INCOME TAX DEL ..... Appellant Through: Mr. Zoheb Hossain, Sr. Standing Counsel.

versus

PUSHPA MARWAH

..... Respondent

Through: None.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE NAJMI WAZIRI

O R D E R %

09.01.2017

This Court had framed a question of law for consideration in these appeals. Given its pendency vide Circular No. 21/2015 dated 10.12.2015, the Central Board of Direct Taxes (CBDT) spelt out the monetary limits beyond which appeals could be preferred before the Income Tax Appellate Tribunal (ITAT), High Courts and SLP before the Supreme Court respectively. Clause 10 of the Circular reads as below:- “10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

This Court notices that the tax effect i.e. upon the assessed income, is

below the prescribed limit of `20,00,000/-. The present appeals cannot be, therefore, prosecuted and are no longer maintainable. It is, however, clarified that in the event, the Assessment Officer discerns any exception in terms of the said Circular, it is open to the Revenue to seek restoration of the concerned appeals by an appropriate application. The appeals are dismissed but in the above terms.

S. RAVINDRA BHAT, J

NAJMI WAZIRI, J JANUARY 09, 2017 /vikas/

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