COMMISSIONER OF INCOME TAX DEL vs. M/S EXCEL FASHION P.LTD.]

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ITA/448/2006HC DelhiDLHC01061899200601 March 2017Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal was not maintainable because the tax effect was below the prescribed limit of ₹20,00,000/- as per CBDT Circular No. 21/2015. The Court clarified that pending appeals below the specified tax limits could be withdrawn or not pressed. The appeal was dismissed on this procedural ground. However, the Court also provided a liberty to the Revenue to seek restoration of the appeal if the Assessing Officer discerns any exception in terms of the said Circular by filing an appropriate application. No decision was made on the merits of the case.

What were the facts?

This is an appeal by the Commissioner of Income Tax, Delhi (the Revenue) against an order of the Income Tax Appellate Tribunal (ITAT) concerning assessment year(s) not specified. The appeal was filed before the High Court of Delhi. The Central Board of Direct Taxes (CBDT) issued Circular No. 21/2015 on 10.12.2015, which stipulated monetary limits for preferring appeals. Clause 10 of this circular allowed for pending appeals below the specified tax limits to be withdrawn or not pressed. The High Court observed that the tax effect in the present appeal was below the prescribed limit of ₹20,00,000/-.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect is below the monetary limit prescribed by CBDT Circular No. 21/2015. Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue, through its counsel, presented the appeal. However, the judgment focuses on the applicability of the CBDT circular and does not record specific arguments made by the Revenue regarding the merits of the appeal or any exception to the circular.

AI-generated summary — verify with the full judgment below

$~61 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 448/2006

COMMISSIONER OF INCOME TAX, DELHI ..... Appellant

Through: Mr. Ruchir Bhatia, Advocate.

versus

M/S EXCEL FASHION P. LTD.

..... Respondent

Through: None.

CORAM: HON’BLE MR. JUSTICE S. RAVINDRA BHAT HON’BLE MR. JUSTICE NAJMI WAZIRI

O R D E R %

01.03.2017

This Court had framed a question of law for consideration in this appeal. Given its pendency vide Circular No. 21/2015 dated 10.12.2015, the Central Board of Direct Taxes (CBDT) spelt out the monetary limits beyond which appeals could be preferred before the Income Tax Appellate Tribunal (ITAT), High Courts and SLP before the Supreme Court respectively. Clause 10 of the Circular reads as below:- “10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

This Court notices that the tax effect i.e. upon the assessed income, is

below the prescribed limit of `20,00,000/-. The present appeal cannot be, therefore, prosecuted and is no longer maintainable. It is, however, clarified that in the event, the Assessing Officer discerns any exception in terms of the said Circular, it is open to the Revenue to seek restoration of the concerned appeal by an appropriate application. The appeal is dismissed but in the above terms.

S. RAVINDRA BHAT, J

NAJMI WAZIRI, J MARCH 01, 2017 /vikas/

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