THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -1 vs. ANSAL PROPERTIES AND INFRASTRUCTURE LTD.

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ITA/540/2024HC DelhiDLHC01074434202428 October 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi considered the submission made by the learned counsel for the Revenue regarding the low tax effect. The Court noted that the tax effect involved in the present appeal was below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. Consequently, the Court dismissed the present appeal on account of low tax effect. The reasoning is based on the administrative instructions and policy of the Revenue itself, which discourages pursuing appeals with insignificant tax implications. The ratio decidendi is that appeals falling below the prescribed monetary threshold, as per departmental circulars, are to be dismissed.

What were the facts?

The appellant, the Principal Commissioner of Income Tax - Central -1, filed an appeal before the Delhi High Court against an order dated 31.01.2024 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 2651/Del/2011 and ITA No. 2549/Del/2019. The assessment year in question is 2015-16. The respondent is Ansal Properties and Infrastructure Ltd. The appeal was filed with a delay of 30 days in filing and 45 days in re-filing, which was condoned by the High Court. The Revenue, at the outset, stated that the tax effect involved in the appeal was below the threshold limit of ₹2,00,00,000/- as per a Circular dated 17.09.2024.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given that the tax effect is below the prescribed monetary threshold for filing appeals. Contentions: Assessee: The judgment does not record any specific contentions made by the assessee. The appeal was dismissed on the grounds raised by the Revenue itself. Revenue: The Revenue contended that the tax effect involved in the present appeal is below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. Based on this, the Revenue submitted that the appeal should be dismissed.

AI-generated summary — verify with the full judgment below

$~74 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 540/2024

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -1

.....Appellant

Through:

versus

ANSAL PROPERTIES AND INFRASTRUCTURE LTD.

.....Respondent

Through:

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU

HON'BLE MS. JUSTICE SWARANA KANTA SHARMA

O R D E R %

28.10.2024

CM APPL. 63518/2024 & CM APPL. 63519/2024

1.

For the reasons stated in these applications, delay of 30 days in filing and 45 days in re-filing the appeal is condoned. 2. Applications are accordingly allowed and stand disposed of. ITA 540/2024 3. The Revenue has filed the present appeal impugning the order dated 31.01.2024 passed by the learned Income Tax Appellate Tribunal in ITA No. 2651/Del/2011 and ITA No. 2549/Del/2019 for the assessment year 2015-16. 4. At the outset, the learned counsel appearing for the Revenue states that the tax effect involved in the present appeal is below the threshold limit This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/11/2024 at 11:28:17

of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. 5. Accordingly, the present appeal is dismissed on account of low tax effect.

VIBHU BAKHRU, J

SWARANA KANTA SHARMA, J OCTOBER 28, 2024/A

Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/11/2024 at 11:28:17

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