COMMISSIONER OF INCOME TAX DELHI vs. M/S ALLIED ELECTRONICS & MAGNETICS LTD.

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ITA/360/2009HC DelhiDLHC01037379200901 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/question raised. The Court recorded the statement made by the learned Senior Standing Counsel for the Revenue that the tax effect involved in the appeal is below Rs. 50,00,000/- and, in terms of Circular No. 3/2018 dated 11.07.2018, the appeal could be disposed of on this basis. The Court clarified that the issue/question raised in the appeal is left open. Liberty was granted to the Revenue to file an application for revival of the appeal if it is found that the case is covered by an exception to the circular. The ratio decidendi is that appeals with a tax effect below a certain threshold, as per administrative instructions, can be disposed of without adjudication on merits, preserving the right to seek revival under specific circumstances.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Revenue) against M/s Allied Electronics & Magnetics Ltd. (Assessee). The assessment year(s) are not specified. The appeal challenges an order or action, the nature of which is not detailed. The procedural history indicates that the Revenue's learned Senior Standing Counsel stated that the tax effect involved in the appeal is below Rs. 50,00,000/-. This statement was made in light of Circular No. 3/2018 dated 11.07.2018.

What were the issues?

1. Whether the appeal should be disposed of without answering the issue/question raised, based on the tax effect being below Rs. 50,00,000/-, as per Circular No. 3/2018 dated 11.07.2018? (Question of procedure/administrative policy) Contentions: Assessee: No arguments recorded as none appeared. Revenue: Argued that the appeal may be disposed of without answering the issue/question raised, as the tax effect involved is below Rs. 50,00,000/-, in terms of Circular No. 3/2018 dated 11.07.2018.

AI-generated summary — verify with the full judgment below

$~25 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 360/2009

COMMISSIONER OF INCOME TAX DELHI ..... Appellant

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

Mr.Shahrukh Ejar, Advocate.

versus

M/S ALLIED ELECTRONICS & MAGNETICS 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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