COMMISSIONER OF INCOME TAX vs. KANCHAN BHALLA

ITA/276/2007HC DelhiDLHC01029159200711 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 that the addition pressed in the present appeal is Rs. 6,72,015/-, the tax effect is below the permissible limit. Consequently, the appeal is disposed of. The reasoning is based on the administrative instruction from the CBDT regarding the monetary limit for appeals. The ratio decidendi is that appeals with a tax effect below the stipulated monetary limit set by the CBDT should not be pursued by the Revenue before the High Court. No specific finding was made on the merits of the addition. The operative direction is that the appeal is disposed of.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Revenue) against the assessee, Kanchan Bhalla. The assessment year(s) are not explicitly stated. The order or action under challenge is the Revenue's appeal to the High Court. The amount in dispute, as pressed in the appeal, is Rs. 6,72,015/-. The procedural history that matters is the issuance of a circular by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, on 08.08.2019, which 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 from the ACIT, Judicial-2, New Delhi, also confirmed the tax effect in the present appeal.

What were the issues?

1. Whether the present appeal, with a tax effect of Rs. 6,72,015/-, should be pursued by the Revenue before the High Court, given the CBDT's circular dated 08.08.2019 fixing the monetary limit at Rs. 1,00,00,000/-? Assessee's contentions: The assessee's counsel did not make any specific arguments on the merits of the case. The appeal was disposed of based on the tax effect. Revenue's contentions: The Revenue, through its counsel, acknowledged the circular dated 08.08.2019 issued by the CBDT, which sets a monetary limit of Rs. 1,00,00,000/- for pursuing appeals before the High Court. They also referred to a letter dated 20.11.2019 from the ACIT, Judicial-2, New Delhi, confirming that the tax effect in this appeal falls below the permissible limit.

AI-generated summary — verify with the full judgment below

$~51 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 276/2007 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. 6,72,015/-, 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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