PR. CIT vs. CAMBOJ BROTHERS P .LTD

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ITA/560/2015HC DelhiDLHC01115003201528 January 2016Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that in view of Circular No. 21/2015 dated 10th December 2015, issued by the Central Board of Direct Taxes, which mandates that appeals with a tax effect below Rs. 20 lakhs should be treated as not pressed, the present appeal falls under this category. Consequently, the appeal was dismissed as not pressed. The Court did not decide on the merits of the case. The operative direction was to dismiss the appeal.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Revenue) against Camboj Brothers P. Ltd. (Assessee) for Assessment Year 2001-02. The income tax computation form for the relevant AY indicated a gross tax demand of Rs. 18,70,523. After adding interest under Sections 234A and 234B, the total tax demand amounted to Rs. 37,82,546. The Revenue's counsel presented the income tax computation form to the Court. The Court noted that the tax effect was less than Rs. 20 lakhs.

What were the issues?

1. Whether the appeal filed by the Revenue is to be treated as not pressed in light of the tax effect being less than Rs. 20 lakhs, as per CBDT Circular No. 21/2015 dated 10th December 2015? The Revenue's contention, as understood from the Court's order, was that the appeal should be treated as not pressed due to the tax effect being below the threshold stipulated in the CBDT circular. No specific arguments were recorded for the Assessee.

Which sections of the Income-tax Act were involved?

Section 234A,Section 234B

AI-generated summary — verify with the full judgment below

ITA 560/2015 Page 1 of 2

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 10. +

ITA 560/2015

PR. CIT

..... Appellant

Through: Mr. Dileep Shivpuri, Senior Standing

counsel with Mr. Zoheb Hossain, Junior Standing

counsel.

versus

CAMBOJ BROTHERS P .LTD

..... Respondent

Through: Mr. Santosh K. Aggarwal, Advocate.

CORAM: JUSTICE S.MURALIDHAR JUSTICE VIBHU BAKHRU

O R D E R %

28.01.2016

1.

Learned counsel for the Assessee has handed over an income tax computation form for the Assessment Year (‘AY’) in question, i.e., 2001-02 which shows that the gross tax demand is Rs. 18,70,523, and it is only after adding the interest amount under Sections 234A and 234B that the total tax works out to Rs.37,82,546.

2.

Since the tax effect is less than Rs.20 lakhs, in view of Circular No. 21/2015 dated 10th December 2015 issued by the Central Board of Direct Taxes, this appeal has to be treated as not pressed by the Revenue.

ITA 560/2015 Page 2 of 2

3.

The appeal is accordingly dismissed as not pressed.

4.

The date already fixed, if any, stands cancelled.

S.MURALIDHAR, J

VIBHU BAKHRU, J JANUARY 28, 2016 mg

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