COMMISSIONER OF INCOME TAX vs. KANCHAN BHALLA

ITA/271/2007HC DelhiDLHC01029154200711 December 2019Bench: CASES PERTAINING TO SPL.DIVISION BENCHES1 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that in light of the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which fixes the monetary limit for the Department to pursue matters before the High Court at Rs. 1,00,00,000/-, and considering the addition pressed in the present appeal of Rs. 2,98,855/-, the tax effect in the appeal is below the permissible limit. Consequently, the present appeal is disposed of. The reasoning is that the appeal does not meet the financial threshold set by the CBDT for the Revenue to continue litigation at the High Court level. The operative direction is the disposal of the appeal. No issue was expressly left undecided; the appeal was disposed of on a procedural/administrative ground.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Revenue) against an order concerning the assessment year(s) not specified. The amount in dispute was Rs. 2,98,855/-. The procedural history involves the Revenue pursuing the matter before the High Court. A circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, fixed the monetary limit for the Department to pursue matters before the High Court at Rs. 1,00,00,000/-. A letter dated 20.11.2019 was issued by the ACIT, Judicial-2, New Delhi.

What were the issues?

1. Whether the present appeal, with a tax effect of Rs. 2,98,855/-, is maintainable before the High Court given the monetary limit stipulated in the CBDT circular dated 08.08.2019. Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. The appeal is disposed of based on the Revenue's submission regarding the tax effect and the CBDT circular. Revenue's Contentions: The Revenue, through a letter from ACIT, Judicial-2, New Delhi, indicated that the tax effect in the present appeal (Rs. 2,98,855/-) is below the permissible tax effect limit of Rs. 1,00,00,000/- fixed by the CBDT circular dated 08.08.2019, implying the appeal should not be pursued.

AI-generated summary — verify with the full judgment below

$~49 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 271/2007 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr.Sunil Agarwal, Senior Standing Counsel with Mr.Tushar Gupta and Ms.Priya, Advocates versus KANCHAN BHALLA ..... Respondent Through: Mr.Prakash Kumar, Mr.Ravi Pratap Mall and Mr.Uma Shankar, Advocates CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MS. JUSTICE REKHA PALLI O R D E R % 11.12.2019 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/-; the addition pressed in the present appeal of Rs. 2,98,855/-, as also the letter dated 20.11.2019 issued by ACIT, Judicial-2, New Delhi, the tax effect in the present appeal being below the permissible tax effect limit, the present appeal is disposed of. VIPIN SANGHI, J REKHA PALLI, J DECEMBER 11, 2019 v

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