THE COMMISSIONER OF INCOME TAX vs. NQA QUALITY SYSTEMS REGISTRAR

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ITA/665/2005HC DelhiDLHC01059679200516 July 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue (ITA 665/2005). The Court observed that connected appeals had previously been dismissed on account of low tax effect. Furthermore, a recent notification dated July 11, 2018, imposed a threshold limit of Rs. 50 lacs for filing appeals and for pending revenue appeals. Given that the re-assessed income in this case was in the range of Rs. 14 lacs, which falls below the new threshold, the Court found no reason to entertain the appeal. The operative direction was the dismissal of the appeal. No specific issue was left undecided, as the appeal was disposed of on procedural grounds.

What were the facts?

The appellant, Commissioner of Income Tax, filed an appeal (ITA 665/2005) against an order concerning the assessment year(s) not specified. The respondent is NQA Quality Systems Registrar. The re-assessed income was approximately Rs. 14 lacs. The High Court noted that similar connected appeals (ITA Nos. 568/2005, 571/2005, and 847/2005) had been dismissed due to low tax effect. A recent notification dated July 11, 2018, established a threshold limit of Rs. 50 lacs for filing appeals and for pending revenue appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the low tax effect and the prevailing monetary limits for filing appeals? Assessee's Contention: The respondent (assessee) did not appear and therefore, no arguments were recorded on their behalf. Revenue's Contention: The Revenue argued for the maintainability of the appeal. However, the Court's decision was based on the low tax effect and the new notification regarding monetary limits for appeals, rather than the merits of the tax dispute itself.

AI-generated summary — verify with the full judgment below

$~R-12 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 665/2005

THE COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr.Zoheb Hossain, Sr. Standing Counsel with Mr.Deepak Anand, Jr. Standing Counsel.

versus

NQA QUALITY SYSTEMS REGISTRAR ..... Respondent

Through: None.

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

O R D E R %

16.07.2018

The connected appeals bearing ITA Nos.568/2005, 571/2005 and 847/2005 were dismissed on account of low tax effect. In the present case, the Court notices that the re-assessed income was in the range of Rs.14 lacs and given that the fresh notification issued recently (dated 11th July, 2018), imposes a threshold limit of R.50 lacs for filing appeals and also in respect of revenue‟s pending appeals, the appeal has to be rejected. Consequently, ITA 665/2005 is dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J JULY 16, 2018 „dc‟

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