COMMISSIONER OF INCOME TAX (TDS)-2 vs. POWER GRID CORPORATION OF INDIA LTD

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ITA/660/2016HC DelhiDLHC01205447201626 October 2016Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MS. JUSTICE DEEPA SHARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue could not have been maintained in view of the prevailing Circulars issued by the Board. The Court observed that the tax effect in the case was approximately Rs. 11,73,000/-. The reasoning is based on the principle that appeals filed by the Revenue must adhere to the monetary limits prescribed by the CBDT Circulars. Since the tax effect was below the threshold, the appeal was deemed not maintainable. The operative direction was to dismiss the appeal. No issues were left undecided.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax (TDS)-2, filed an appeal before the High Court of Delhi against an order (not specified in the judgment) concerning Power Grid Corporation of India Ltd. The assessment year(s) are not mentioned. The tax effect in dispute was approximately Rs. 11,73,000/-. The appeal was filed by the Revenue, and the respondent was the assessee, Power Grid Corporation of India Ltd. The High Court noted the tax effect at the outset of the proceedings.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the prevailing Circulars issued by the Board regarding the monetary limit for filing appeals. This is a question of law. Contentions: Assessee: The appeal is not maintainable due to the tax effect being below the threshold stipulated in the CBDT Circulars, which mandate a minimum tax effect for the Revenue to file appeals. Revenue: The judgment does not record any specific contentions made by the Revenue regarding the maintainability of the appeal or any other substantive issue. The appeal was presented as an aggrieved party seeking to urge a substantial question of law.

AI-generated summary — verify with the full judgment below

$~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 660/2016, CM APPL.31181/2016

COMMISSIONER OF INCOME TAX (TDS)-2 ..... Appellant Through: Mr. Dileep Shivpuri, Sr. Standing Counsel with Mr. Sanjay Kumar, Jr. Standing Counsel.

versus

POWER GRID CORPORATION OF INDIA LTD ..... Respondent

Through: Mr. Pranjal Srivastava, Advocate.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MS. JUSTICE DEEPA SHARMA

O R D E R %

26.10.2016

The revenue is aggrieved and urges what it considered to be a substantial question of law. At the outset, the Court noticed that the tax effect in this case is about Rs.11,73,000/-.

In the circumstances, the appeal could not have been maintained by the Revenue in view of the prevailing Circulars issued by the Board in that regard.

The appeal is accordingly dismissed.

S. RAVINDRA BHAT, J

DEEPA SHARMA, J OCTOBER 26, 2016 /vikas/

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