COMMISSIONER OF INCOME TAX DEL vs. M/S MIDEAST INTEGRATED STEELS

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ITA/512/2006HC DelhiDLHC01061971200612 December 2019Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that a circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, fixes the monetary limit for the Department to pursue matters before the High Court at Rs. 1,00,00,000/-. Since the tax effect in the present appeal was Rs. 76,19,000/-, which is below the stipulated limit, the appeal was disposed of. The reasoning is based solely on the administrative instruction regarding monetary limits for appeals, not on the merits of the original assessment or the ITAT's decision. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit are not to be pursued by the Revenue.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is M/s Mideast Integrated Steels. The appeal concerns the assessment year(s) not explicitly stated in the judgment. The procedural history involves the Revenue filing an appeal before the High Court. A letter dated 20.11.2019 from the ACIT, Judicial-2, New Delhi, stated the tax effect in the appeal to be Rs. 76,19,000/-.

What were the issues?

The High Court had to decide whether to proceed with the appeal filed by the Revenue. The primary issue revolved around the monetary limit for filing appeals by the Department before the High Court. The Revenue contended that the tax effect of Rs. 76,19,000/- in the present appeal was below the permissible monetary limit. The judgment does not record any specific arguments from the assessee's side regarding the merits of the case or the tax effect.

AI-generated summary — verify with the full judgment below

$~41. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 512/2006

COMMISSIONER OF INCOME TAX DEL ..... Appellant Through: Mr. Sunil Agarwal, Mr. Tushar Gupta and Ms. Priya Sarkar, Advocates.

versus

M/S MIDEAST INTEGRATED STEELS

..... Respondent

Through: Mr. Uma Shankar, Advocate.

CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MS. JUSTICE REKHA PALLI

O R D E R % 12.12.2019

In the light of the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section), Government of India, which fixes the monetary limit in respect of tax effect, inter alia, before the High Court in which the Department could pursue the matter as Rs. 1,00,00,000/-; the tax effect of Rs. 76,19,000/- as mentioned in the letter dated 20.11.2019 issued by ACIT, Judicial-2, New Delhi, the tax effect in the present appeal being below the permissible tax effect limit, the present appeal is disposed of.

VIPIN SANGHI, J

REKHA PALLI, J DECEMBER 12, 2019 kd

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