THE PR. COMMISSIONER OF INCOME TAX -3 vs. EVERGREEN INTERNATIONAL LTD.

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ITA/776/2018HC DelhiDLHC01172700201827 July 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court took the statement of the learned counsel for the appellant (Revenue) on record. The Court held that in view of the tax effect being below Rs. 50,00,000/-, the appeals are disposed of without answering the question of law. The Court clarified that the question of law has not been answered due to the low tax effect. No specific findings were made on the merits of the case, and no operative directions such as remand or deletion were issued. The principle derived is that appeals with a tax effect below a certain threshold, as per administrative circulars, can be disposed of without deciding the substantial question of law.

What were the facts?

These are three appeals filed by the Principal Commissioner of Income Tax (Revenue) against orders of the Income Tax Appellate Tribunal (ITAT). The appeals are ITA 774/2018, ITA 776/2018, and ITA 777/2018, involving assessees Umbrella Projects Pvt. Ltd., Evergreen International Ltd., and Jasisa Tyres Pvt. Ltd., respectively. The assessment years are not explicitly stated in the provided text. The appeals challenge decisions of the ITAT, the specifics of which are not detailed. The procedural history relevant here is the filing of these appeals by the Revenue.

What were the issues?

The primary issue before the High Court was whether the appeals, given the tax effect, should be decided on merits or disposed of based on administrative instructions. The Revenue, through its counsel, stated that the tax effect in these appeals is below Rs. 50,00,000/-. In terms of Circular No. 3/2018, dated 11.07.2018, the Revenue contended that the question of law need not be answered and could be left open. The Assessees' contentions are not recorded in the provided text. The question of law that would have been decided, had the appeals proceeded on merits, is not specified.

AI-generated summary — verify with the full judgment below

$-18, 20&21 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 774/2018 THE PR. COMMISSIONER OF INCOME TAX -9 Appellant Through: Mr. Ruchir Bhatia, Advocate versus UMBRELLA PROJECTS PVT. LTD. Respondent Through WITH \ + ITA776/2018 I the PR. COMMISSIONER OF INCOME TAX -3 Appellant Through: Mr. Ruchir Bhatia, Advocate versus EVERGREEN INTERNATIONAL LTD. Respondent Through ^ WITH + ITA 777/2018 THE PR. COMMISSIONER OF INCOMETAX -5 Appellant i ^ ' Through: Mr. Ruchir Bhatia, Advocate versus JASISA TYRES PVT. LTD. Respondent Through CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR Signed By:RAM DATT Signing Date:09.10.2024 15:41 Certify that the digital and physical file have been compared and the digital data is as per the physical file and no page is missing. Signature Not Verified

ORDER 0/„ 27.07.2018 Learned counsel for the appellant states that the tax effect in these appeals is below Rs.50,00,000/-, and in terms of Circular No.3/2018, dated 11.7.2018, question of law need not be answered and may be left open. Taking the statement on record, the appeals are disposed of. We clarify that we have not answered the question of law, in view of the fact thatthetaxeffect isbelow Rs.50,00,000/-. - '// : SANJIVKHANNA, J JULY 27, 2018 tp CHANDER^HEKHAR, J

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