THE COMMISSIONER OF INCOME TAX vs. GOPAL DASS ESTATES & HOUSING PVT.LTD.

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ITA/668/2009HC DelhiDLHC01061396200930 July 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi dismissed all the appeals filed by the Commissioner of Income Tax. The decision was based on the joint understanding of both parties that the tax effect in these appeals was below the threshold stipulated by the Central Board of Direct Taxes (CBDT) in its Circular No. 3 of 2018, dated 11.07.2018. The court noted that the counsel for the assessee brought this circular to its attention, and the counsel for the Revenue did not contest this fact. Consequently, the appeals were disposed of on the grounds of low tax effect, without delving into the merits of the substantive tax disputes. No specific monetary threshold was mentioned in the judgment excerpt, nor were any specific assessment years detailed. The operative direction was the dismissal of the appeals.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (Revenue) against the assessee, Gopal Dass Estates & Housing Pvt. Ltd. The appeals concerned various assessment years, although specific years are not detailed in this excerpt. The core of the matter was the tax effect of the appeals. The counsel for the assessee brought to the court's attention a recent Circular No. 3 of 2018 dated 11.07.2018 issued by the Central Board of Direct Taxes (CBDT). This circular stipulated a monetary limit for the tax effect below which appeals were to be dismissed. The Revenue's counsel did not dispute this position.

What were the issues?

1. Whether the appeals filed by the Revenue should be dismissed in light of CBDT Circular No. 3 of 2018, which mandates dismissal of appeals with a tax effect below a prescribed limit? Assessee's Contention: The assessee argued that the appeals should be dismissed as the tax effect was less than the amount prescribed in CBDT Circular No. 3 of 2018. The assessee relied on this circular as the basis for their submission. Revenue's Contention: The Revenue did not deny the position stated by the assessee regarding the applicability of CBDT Circular No. 3 of 2018 and the low tax effect of the appeals. No specific arguments were recorded for the Revenue beyond this non-denial.

AI-generated summary — verify with the full judgment below

$~26,28,34,35 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 50/2007

COMMISSIONER OF INCOME TAX

..... Appellant

versus

GOPAL DASS ESTATES & HOUSING PVT.LTD. ..... Respondent + ITA 668/2009

THE COMMISSIONER OF INCOME TAX ..... Appellant

versus

GOPAL DASS ESTATES & HOUSING PVT.LTD. ..... Respondent + ITA 456/2013

CIT

..... Appellant

versus

GOPAL DASS ESTATES & HOUSING PVT.LTD. ..... Respondent + ITA 457/2013

COMMISSIONER OF INCOME TAX

..... Appellant

versus

GOPAL DASS ESTATES & HOUSING PVT.LTD. ..... Respondent Present: Ms.Vibhooti Maihotra, Jr.Standing Counsel for appellant. Mr. M.S. Syali, Sr. Advocate, Mr. Satyen Sethi, Mr. Arta Trana Panda, Mr. Tarun Singh, Ms. Gargi Sethee, Advs. for Assessees.

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

O R D E R %

30.07.2018

ITA 50/2007 & other connected matters

Page 1 of 2

It is stated by the counsel for the Respondent that in view of the recent Circular of the Central Board of Direct Taxes (Circular No.3 of 2018 dated 11.07.2018) the appeals have to be dismissed as resulting in tax effect to less than the prescribed amount i.e. `50 lacs. This position is not denied by the counsel for the Revenue.

In the light of this development, the appeals are dismissed as having low tax effect limit.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J JULY 30, 2018/akv

ITA 50/2007 & other connected matters

Page 2 of 2

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