COMMISSIONER OF INCOME TAX vs. HANS RAJ BANSAL

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ITA/577/2005HC DelhiDLHC01059582200510 August 20181 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal has been rendered infructuous on account of low tax effect. This decision was based on Circular No. 10/2018 dated July 11, 2018, which increased the threshold for the Revenue to approach the High Court under Section 268 of the Act to ₹50 lakhs. The disputed amount of ₹39,36,780/- falls below this revised threshold. The Court noted that the circular is applicable to pending appeals. Consequently, the application for withdrawal was allowed, and the appeal was dismissed. However, the question of law framed earlier was expressly kept open.

What were the facts?

The Revenue, Commissioner of Income Tax, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT). The appeal challenged the deletion of amounts amounting to ₹39,36,780/- that the Revenue sought to bring to tax in a search assessment under Section 158BC of the Act. The assessment year(s) are not specified. The appeal was admitted, and questions of law were framed on December 1, 2006. Subsequently, the Revenue filed an application (C.M. APPL. 32291/2018) to withdraw the appeal.

What were the issues?

1. Whether the appeal is rendered infructuous due to a low tax effect, considering the revised threshold for appeals under Section 268 of the Act as per Circular No. 10/2018 dated July 11, 2018. Assessee's Contention: The assessee (implicitly, through the application for withdrawal) relies on the Circular No. 10/2018, which increased the monetary threshold for the Revenue to approach the High Court under Section 268 of the Act to ₹50 lakhs. The amount in dispute (₹39,36,780/-) is below this new threshold, rendering the appeal infructuous. The circular is stated to be applicable to pending appeals. Revenue's Contention: The Revenue, by filing the application, concedes that the appeal has become infructuous due to the low tax effect as per the revised circular.

Which sections of the Income-tax Act were involved?

Section 260A,Section 158BC,Section 268

AI-generated summary — verify with the full judgment below

$~24 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 577/2005

COMMISSIONER OF INCOME TAX

..... Appellant Through : Sh. Sanjay Kumar and Sh. Asheesh Jain, Advocates, for appellant.

versus

HANS RAJ BANSAL

..... Respondent

Through : None.

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

O R D E R %

10.08.2018

C.M. APPL.32291/2018 In this appeal, the questions of law were framed on 01.12.2006 by the Revenue under Section 260A of the Income Tax Act, 1961 [hereafter “the Act”]. The Revenue’s grievance pertains to the deletion of amounts said to be brought to tax in the course of search assessment under Section 158BC of the Act. The amount sought to be taxed was `39,36,780/-. At that relevant point of time, the rate of tax applicable in such cases was 60% of the assessed amount. The recent circular of 11.07.2018 – which is concededly applicable, has increased the threshold to enable the Revenue to approach this Court under Section 268 of the Act to `50 lakhs. The Circular also has been made applicable to pending appeals. In these circumstances, the appeal has been rendered infructuous on account of low tax effect. The application is accordingly allowed.

ITA 577/2005 In view of the orders made in C.M. Appl.32291/2018, the appeal is dismissed. Needless to add, the question of law framed is kept open.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J AUGUST 10, 2018/ajk

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