PR. COMMISSIONER OF INCOME TAX (CENTRAL)-3 vs. M/S SHALIMAR TOWN PLANNERS PVT. LTD.

PDF · subscribers
ITA/617/2019HC DelhiDLHC01002202201813 March 2020Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE TALWANT SINGH2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court allowed the respondent-assessee's application for disposal of the appeal on the ground of low tax effect. The Court noted that the tax effect involved in the appeal was Rs. 8,76,695/-, which is significantly below the revised monetary limit of Rs. 1 crore for filing appeals by the Department to the High Court, as per CBDT Circular No. 17/2019. The Court also observed that the Department-appellant had not filed any reply to the assessee's application despite notice. Consequently, the appeal was dismissed on the ground of low tax effect. No specific issue regarding the merits of the ITAT's order was decided.

What were the facts?

The appellant, Pr. Commissioner of Income Tax (Central)-3, filed an appeal against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is M/s Shalimar Town Planners Pvt. Ltd. The appeal pertains to assessment year(s) not explicitly stated but implied to be relevant for the tax effect calculation. The issue under challenge is the ITAT's decision which led to a tax effect of Rs. 8,76,695/-. The respondent-assessee filed an application for disposal of the appeal on the ground of low tax effect, citing CBDT Circular No. 17/2019 dated August 8, 2019, which revised the monetary limit for departmental appeals to the High Court to Rs. 1 crore. The Department-appellant did not file a reply to this application.

What were the issues?

1. Whether the present appeal filed by the Department is to be dismissed on the ground of low tax effect, as per CBDT Circular No. 17/2019? Assessee's contentions: The assessee argued that the appeal should be dismissed as the tax effect involved, amounting to Rs. 8,76,695/-, is below the revised monetary limit of Rs. 1 crore for filing appeals by the Department to the High Court, as stipulated in CBDT Circular No. 17/2019. The assessee also noted that no reply was filed by the Department to their application. Revenue's contentions: The judgment records no specific contentions from the revenue regarding the merits of the appeal or the applicability of the circular. Their inaction in filing a reply to the assessee's application is noted.

AI-generated summary — verify with the full judgment below

#25 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 617/2019

PR. COMMISSIONER OF INCOME TAX (CENTRAL)-3 ..... Appellant Through Mr. Zoheb Hossain, Sr. Standing Counsel with Mr. Parth Seemwal, Jr. Standing Counsel and Mr. Mehak Sachdeva, Advocates

versus

M/S SHALIMAR TOWN PLANNERS PVT. LTD. ..... Respondent

Through Mr. Piyush Kaushik, Advocate

CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R %

13.03.2020

CM APPL. 9669/2020 Present application has been filed by the respondent-assessee for disposal of the present case on the ground of low tax effect. In the application, it is stated that the present appeal of the Department-appellant is covered by the low tax effect circular issued by CBDT dated 8th August, 2019 numbered as circular no. 17/2019, wherein monetary limits for filing of appeals by the Department to the High Court has been revised to Rs. 1 crore and the tax effect involved in the present

appeal (ITA No. 617/2019) is admittedly Rs.8,76,695/-. No reply to the present application has been filed despite notice having been accepted by the Department on 16th July, 2019 Consequently, the present application is allowed and appeal is dismissed on the ground of low tax effect.

MANMOHAN, J

SANJEEV NARULA, J MARCH 13, 2020 rn

Recent GST High Court judgments

Search GST case law →