COMMISSIONER OF INCOME TAX vs. M/S PONDY METAL & ROLLING MILL

ITA/367/2006HC DelhiDLHC01061809200610 December 2019Bench: CASES PERTAINING TO SPL.DIVISION BENCHES1 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Delhi disposed of the appeal. The decision was based on a circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which sets a monetary limit of Rs. 1,00,00,000/- for the Department to pursue matters before the High Court. The judgment notes that the tax effect in the present appeal is below this permissible limit. Consequently, the appeal was disposed of on this procedural ground, without delving into the merits of the income tax demand.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Appellant) against M/s Pondy Metal & Rolling Mill (Respondent). The dispute pertains to an income tax demand of Rs. 38,93,428/-, as stated in the order of the CIT(A) dated 17.07.2000. The present appeal was filed before the High Court of Delhi. A letter dated 20.11.2019 was issued by the ACIT, Judicial-2, New Delhi, concerning the tax effect in the appeal.

What were the issues?

1. Whether the present appeal is maintainable before the High Court in light of the monetary limit for tax effect fixed by the Department. The Appellant (Revenue) is implicitly challenging the maintainability of the appeal if the tax effect is below the prescribed limit. The Respondent (Assessee) would likely argue that the appeal should be dismissed if the tax effect is below the limit. The judgment relies on a 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 pursuing matters before the High Court at Rs. 1,00,00,000/-.

AI-generated summary — verify with the full judgment below

$~35 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 367/2006 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr. Deepak Anand, Senior Standing Counsel with Mr. Vipul Agarwal, Advocate. versus M/S PONDY METAL & ROLLING MILL ..... Respondent Through: Mr. Siddharth Tandon, Advocate. CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON’BLE MS. JUSTICE REKHA PALLI O R D E R % 10.12.2019 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. 38,93,428/- as mentioned in the order of CIT (A) dated 17.07.2000, 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 10, 2019/nk

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