PR. COMMISSIONER OF INCOME TAX-06 vs. MKM FINSEC PVT. LTD.

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ITA/45/2017HC DelhiDLHC01004569201716 November 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court took the Revenue's statement on record. It disposed of the present appeal without examining the question/issue raised, explicitly stating that the issue/question is left open. The Court granted liberty to the Revenue to file an application for revival of the appeal if it is found that the matter is covered by an exception to the circular. The principle established is that appeals with a tax effect below the threshold specified in the relevant circular can be disposed of without merits, preserving the right to revive if exceptions apply.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-06 (Revenue) against MKM Finsec Pvt. Ltd. (Assessee). The assessment year(s) are not specified in the judgment. The order or action under challenge is the appeal itself, filed before the High Court. The procedural history involves the Revenue's counsel stating that the tax effect in the present appeal is below Rs.50 lakhs. This is in accordance with Circular No.3 of 2018 dated 11th July, 2018, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be disposed of on the grounds of low tax effect as per Circular No.3 of 2018? (Question of law) Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue, through its counsel, stated that the tax effect in the present appeal is below Rs.50 lakhs. Therefore, in terms of Circular No.3 of 2018 dated 11th July, 2018, the appeal may be disposed of without answering or examining the question/issue raised. The Revenue also clarified that the issue/question is left open.

AI-generated summary — verify with the full judgment below

$~21 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 45/2017 PR. COMMISSIONER OF INCOME TAX-06 ..... Appellant Through: Mr.Zoheb Hossain, Sr. St. Standing Counsel with Mr.Deepak Anand, Adv. versus MKM FINSEC PVT. LTD. ..... Respondent Through: CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI O R D E R % 16.11.2018 Counsel for the Revenue states that the tax effect in the present appeal is below Rs.50 lakhs and hence, in terms of Circular No.3 of 2018 dated 11th July, 2018, the appeal may be disposed of without answering or examining the question/issue raised. It may be clarified that the issue/question is left open. Taking the statement on record, we dispose of the present appeal without examining the question/issue raised, which is left open. Liberty is granted to the Revenue to file an application for revival of the appeal in case it is found that the matter is covered by an exception. SANJIV KHANNA, J. ANUP JAIRAM BHAMBHANI, J. NOVEMBER 16, 2018/uj

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