COMMISSIONER OF INCOME TAX vs. DCM LIMITED

ITA/340/2008HC DelhiDLHC01166681200709 December 2019Bench: CASES PERTAINING TO SPL.DIVISION BENCHES1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi disposed of the appeal in light of the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular fixes the monetary limit for the Department to pursue matters before the High Court at Rs. 1,00,00,000/-. The income tax demand of Rs. 6,85,236/-, as mentioned in the CIT(A)'s order dated 24.02.2004 and confirmed by the letter dated 20.11.2019 from the ACIT, Judicial-2, New Delhi, was found to be below the permissible tax effect limit. Therefore, the appeal was disposed of on this procedural ground without deciding the merits of the case. No specific finding was made on the substantive issues of the appeal.

What were the facts?

The Commissioner of Income Tax (Appellant) filed an appeal before the High Court of Delhi against an order of the CIT(A) dated 24.02.2004. The appeal pertains to the assessment year(s) not explicitly stated but relates to an income tax demand of Rs. 6,85,236/-. The respondent is DCM Limited. The appeal was filed by the Revenue. A letter dated 20.11.2019 from the ACIT, Judicial-2, New Delhi, was also placed on record. The present proceedings are at the High Court stage.

What were the issues?

1. Whether the present appeal filed by the Revenue is maintainable before the High Court given the monetary limit prescribed 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. Assessee's Contention: Not recorded. Revenue's Contention: The revenue relied on the circular dated 08.08.2019 which fixes the monetary limit for pursuing matters before the High Court at Rs. 1,00,00,000/-. The tax effect in the present appeal is below this limit.

AI-generated summary — verify with the full judgment below

$~58 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 340/2008 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr. Ruchir Bhatia, Senior Standing Counsel with Ms. Madhura M.N., Advocate. versus DCM LIMITED ..... Respondent Through: Mr. Anunav Kr., Advocate. CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON’BLE MS. JUSTICE REKHA PALLI O R D E R % 09.12.2019 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 income tax demand of Rs. 6,85,236/- as mentioned in the order of CIT (A) dated 24.02.2004, 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 09, 2019/nk

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