COMMISSIONER OF INCOME TAX vs. GOPAL DASS ESTATES & HOUSING PVT.LTD.

PDF · subscribers
ITA/457/2013HC DelhiDLHC01134845201230 July 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeals were to be dismissed. This decision was based on the representation made by the assessee's counsel regarding the applicability of CBDT Circular No. 3 of 2018. This circular mandates the dismissal of appeals where the tax effect is below a specified limit, which was stated to be ₹50 lakhs in this case. The Revenue's counsel did not contest this position. Therefore, the court found no reason to proceed with the merits of the appeals. The ratio decidendi is that appeals with a low tax effect, as defined by subsequent CBDT circulars, are to be dismissed, provided the revenue does not dispute this fact. The operative direction was the dismissal of all connected appeals.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (Revenue) against the assessee, Gopal Dass Estates & Housing Pvt. Ltd. The appeals concerned multiple assessment years, though not explicitly stated in the provided text. The core of the matter was the tax effect of the appeals. The counsel for the assessee informed the High Court that recent CBDT Circular No. 3 of 2018, dated July 11, 2018, mandated the dismissal of appeals where the tax effect was less than a prescribed amount, which was stated to be ₹50 lakhs. The counsel for the Revenue did not dispute this position. Consequently, the High Court was asked to dispose of the appeals based on this development.

What were the issues?

The primary issue before the High Court was whether the appeals filed by the Revenue should be dismissed in light of the CBDT Circular No. 3 of 2018, which stipulated a monetary limit for filing appeals based on tax effect. The question was: 1. Whether the appeals, having a tax effect below the threshold prescribed by CBDT Circular No. 3 of 2018, are liable to be dismissed? (Question of law and fact) Contentions: Assessee: Relied on CBDT Circular No. 3 of 2018, arguing that the appeals should be dismissed as the tax effect was less than ₹50 lakhs, the prescribed limit. Revenue: Did not deny the position taken by the assessee regarding the applicability of the CBDT Circular and the low tax effect.

AI-generated summary — verify with the full judgment below

$~26,28,34,35 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 50/2007

COMMISSIONER OF INCOME TAX

..... Appellant

versus

GOPAL DASS ESTATES & HOUSING PVT.LTD. ..... Respondent + ITA 668/2009

THE COMMISSIONER OF INCOME TAX ..... Appellant

versus

GOPAL DASS ESTATES & HOUSING PVT.LTD. ..... Respondent + ITA 456/2013

CIT

..... Appellant

versus

GOPAL DASS ESTATES & HOUSING PVT.LTD. ..... Respondent + ITA 457/2013

COMMISSIONER OF INCOME TAX

..... Appellant

versus

GOPAL DASS ESTATES & HOUSING PVT.LTD. ..... Respondent Present: Ms.Vibhooti Maihotra, Jr.Standing Counsel for appellant. Mr. M.S. Syali, Sr. Advocate, Mr. Satyen Sethi, Mr. Arta Trana Panda, Mr. Tarun Singh, Ms. Gargi Sethee, Advs. for Assessees.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

30.07.2018

ITA 50/2007 & other connected matters

Page 1 of 2

It is stated by the counsel for the Respondent that in view of the recent Circular of the Central Board of Direct Taxes (Circular No.3 of 2018 dated 11.07.2018) the appeals have to be dismissed as resulting in tax effect to less than the prescribed amount i.e. `50 lacs. This position is not denied by the counsel for the Revenue.

In the light of this development, the appeals are dismissed as having low tax effect limit.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J JULY 30, 2018/akv

ITA 50/2007 & other connected matters

Page 2 of 2

Recent GST High Court judgments

Search GST case law →