PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL)-1 vs. ULTRA HOME CONSTRUCTION PVT. LTD.,

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ITA/284/2017HC DelhiDLHC01156061201701 October 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the appeal without examining the issue or question raised. The Court recorded the submission of the learned Senior Standing Counsel for the appellant/Revenue that the tax effect was below Rs. 50,00,000/- and, therefore, in terms of Circular No. 3/2018 dated 11.07.2018, the appeal could be disposed of. The Court clarified that the issue/question was left open. Liberty was granted to the Revenue to file an application for revival of the appeal if it was found to be covered by an exception to the circular. The ratio decidendi is that appeals with a tax effect below the threshold stipulated in the relevant circular can be disposed of without deciding the merits, subject to conditions and liberty to seek revival.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central)-1 (Revenue) against Ultra Home Construction Pvt. Ltd. (assessee). The assessment year(s) are not specified in the judgment. The appeal challenges an order or action, the details of which are not provided. The procedural history is that the Revenue's counsel stated that the tax effect involved in the appeal is below Rs. 50,00,000/-. This statement was made in accordance with Circular No. 3/2018 dated 11.07.2018.

What were the issues?

The Tribunal was not required to decide any specific questions of law or fact as the appeal was disposed of based on the tax effect. The primary issue, therefore, was whether the appeal should be dismissed without answering the merits due to the low tax effect, as per the Revenue's submission. The Revenue argued that the appeal should be disposed of in terms of Circular No. 3/2018, which sets monetary limits for filing appeals. The judgment does not record any arguments from the assessee.

AI-generated summary — verify with the full judgment below

$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 284/2017

PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL)-1 ..... Appellant

Through : Mr.Asheesh Jain, Sr.Standing Counsel with

Mr.Shahrukh Ejar, Advocate.

versus

ULTRA HOME CONSTRUCTION PVT. LTD., ..... Respondent

Through : None. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR

O R D E R %

01.10.2018 Learned Senior Standing counsel for the appellant/Revenue states that the tax effect involved in this appeal is below Rs.50,00,000/- and hence in terms of circular No.3/2018 dated 11.7.2018 the appeal may be disposed of, without answering the issue/question raised. Recording the aforesaid, the appeal is disposed of, without examining the issue/question raised. We clarify that the issue/question is left open. We also grant liberty to the Revenue to file an application for revival of the present appeal, if it is found that the case is covered by an exception.

SANJIV KHANNA, J.

CHANDER SHEKHAR, J. OCTOBER 01, 2018/sa

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