COMMISSIONER OF INCOME TAX vs. M/S UNISON HOTELS LTD.

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ITA/475/2005HC DelhiDLHC01059469200501 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 is not maintainable because the tax effect is below the prescribed limit of ₹20,00,000/- as per CBDT Circular No. 21/2015. The Court reasoned that Clause 10 of the Circular mandates that pending appeals below the specified tax limits may be withdrawn or not pressed. Therefore, the appeal cannot be prosecuted further. The operative direction is that the appeal is dismissed. However, the Court clarified that if the Assessing Officer identifies any exception under the said Circular, the Revenue can seek restoration of the appeal through an appropriate application. No issue was expressly left undecided.

What were the facts?

This is an appeal by the Commissioner of Income Tax (Appellant) against M/s Unison Hotels Ltd. (Respondent). The appeal was filed before the High Court of Delhi. The assessment year(s) are not explicitly stated. The order or action under challenge is the pendency of the appeal itself, which the High Court is considering. The procedural history involves the issuance of Circular No. 21/2015 by the Central Board of Direct Taxes (CBDT), which specified monetary limits for preferring appeals. The High Court noted that the tax effect in this appeal falls below the prescribed limit of ₹20,00,000/-.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the monetary limits prescribed by CBDT Circular No. 21/2015? (Question of law) The Appellant, represented by Mr. Ruchir Bhatia, Advocate, is before the Court. The Respondent, M/s Unison Hotels Ltd., is not represented. The High Court itself raised the issue of maintainability based on the CBDT Circular. The Circular, specifically Clause 10, states that pending appeals below the specified tax limits may be withdrawn or not pressed. The Court observed that the tax effect in the present appeal is below the limit of ₹20,00,000/-. No specific arguments from either side regarding the merits of the appeal or the interpretation of the circular were recorded, other than the Court's observation.

AI-generated summary — verify with the full judgment below

$~55 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 475/2005

COMMISSIONER OF INCOME TAX

..... Appellant

Through: Mr. Ruchir Bhatia, Advocate.

versus

M/S UNISON HOTELS 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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