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

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ITA/382/2017HC DelhiDLHC01156071201701 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 Revenue that the tax effect was below Rs. 50,00,000/- and, in terms of Circular No. 3/2018 dated 11.07.2018, the appeal could be disposed of on that basis. The court clarified that the issue/question remained open. Liberty was granted to the Revenue to file an application for revival of the appeal if it was found that the case falls under an exception to the circular. The ratio decidendi is that appeals with a tax effect below a certain threshold, as per relevant circulars, can be disposed of without deciding the merits, provided no exceptions apply.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central)-1 against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is Ultra Home Construction Pvt. Ltd. The assessment year(s) are not specified. The appeal concerns a tax effect below Rs. 50,00,000/-. The Revenue, through its learned Senior Standing Counsel, stated that the appeal may be disposed of in terms of Circular No. 3/2018 dated 11.07.2018, without answering the issue raised. The respondent was represented by None.

What were the issues?

1. Whether the appeal should be disposed of without answering the issue raised, based on the tax effect being below Rs. 50,00,000/-, in terms of Circular No. 3/2018 dated 11.07.2018? Assessee (Revenue) Contentions: The Revenue contended that the tax effect involved in the appeal is below Rs. 50,00,000/- and therefore, in terms of Circular No. 3/2018 dated 11.07.2018, the appeal may be disposed of without answering the issue/question raised. No specific authorities, circulars, or precedents were named in support of this contention, other than the mentioned circular. Respondent (Assessee) Contentions: No arguments were recorded for the respondent.

AI-generated summary — verify with the full judgment below

$~41 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 382/2017

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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