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

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ITA/685/2005HC DelhiDLHC01059701200501 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 as the tax effect was below the prescribed limit of ₹20,00,000/- as per CBDT Circular No. 21/2015. The Court noted that Clause 10 of the circular applied retrospectively to pending appeals. Therefore, the appeal could not be prosecuted. The Court dismissed the appeal but 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.

What were the facts?

The appeal, ITA 685/2005, was filed by the Commissioner of Income Tax (Revenue) against M/s Enpro Exports P. Ltd. (Assessee). The appeal was pending before the High Court of Delhi. The Central Board of Direct Taxes (CBDT) issued Circular No. 21/2015 on 10.12.2015, which specified monetary limits for preferring appeals. Clause 10 of this circular stated that pending appeals below the specified tax limits could be withdrawn or not pressed.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 is maintainable before the High Court given the tax effect is below the monetary limit prescribed by CBDT Circular No. 21/2015? (Question of law) The Revenue contended that the appeal was filed prior to the issuance of the circular and therefore should be governed by the rules in effect at the time of filing. However, the circular explicitly states it applies retrospectively to pending appeals. The Assessee did not present any arguments as none were recorded in the judgment.

AI-generated summary — verify with the full judgment below

$~58 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 685/2005

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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