THE COMMISSIONER OF INCOME TAX vs. M/S ENPRO EXPORTS P.LTD.

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ITA/678/2005HC DelhiDLHC01059693200501 March 2017Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal was not maintainable because the tax effect was below the prescribed limit of ₹20,00,000/- as per CBDT Circular No. 21/2015. The Court reasoned that the circular, which applied retrospectively to pending appeals, mandated that appeals below the specified tax limits should be withdrawn or not pressed. Therefore, the appeal could no longer be prosecuted. The Court clarified that if the Assessing Officer found any exception under the circular, the Revenue could seek restoration of the appeal through an appropriate application. No specific issue was left undecided; the appeal was dismissed on procedural grounds.

What were the facts?

This is an appeal by the Commissioner of Income Tax (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed before the High Court of Delhi. The Central Board of Direct Taxes (CBDT) issued Circular No. 21/2015 on December 10, 2015, which specified monetary limits for preferring appeals before the ITAT, High Courts, and the Supreme Court. Clause 10 of this circular stated that pending appeals below the specified tax limits could be withdrawn or not pressed. The High Court observed that the tax effect in the present appeal was below the prescribed limit of ₹20,00,000/-.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the monetary limits prescribed by CBDT Circular No. 21/2015. (Question of law) The Revenue's contention, implied by its continued prosecution of the appeal, was that the appeal should be heard on its merits. However, the judgment does not explicitly record any arguments made by the Revenue. The High Court's observation regarding the tax effect below the prescribed limit suggests the Revenue's argument, if any, would have been contrary to the application of the circular. The judgment does not record any arguments from the Respondent (assessee).

AI-generated summary — verify with the full judgment below

$~57 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 678/2005

THE COMMISSIONER OF INCOME TAX ..... Appellant

Through: Mr. Ruchir Bhatia, Advocate.

versus

M/S ENPRO EXPORTS P. LTD.

..... Respondent

Through: None.

CORAM: HON’BLE MR. JUSTICE S. RAVINDRA BHAT HON’BLE MR. JUSTICE NAJMI WAZIRI

O R D E R %

01.03.2017

This Court had framed a question of law for consideration in this appeal. Given its pendency vide Circular No. 21/2015 dated 10.12.2015, the Central Board of Direct Taxes (CBDT) spelt out the monetary limits beyond which appeals could be preferred before the Income Tax Appellate Tribunal (ITAT), High Courts and SLP before the Supreme Court respectively. Clause 10 of the Circular reads as below:- “10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

This Court notices that the tax effect i.e. upon the assessed income, is

below the prescribed limit of `20,00,000/-. The present appeal cannot be, therefore, prosecuted and is no longer maintainable. It is, however, clarified that in the event, the Assessing Officer discerns any exception in terms of the said Circular, it is open to the Revenue to seek restoration of the concerned appeal by an appropriate application. The appeal is dismissed but in the above terms.

S. RAVINDRA BHAT, J

NAJMI WAZIRI, J MARCH 01, 2017 /vikas/

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