THE PR. COMMISSIONER OF INCOME TAX -4 vs. H & S SOFTWARE DEVELOPMENT AND KNOWLEDGE MANAGEMENT CENTRE PVT. LTD.

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ITA/821/2018HC DelhiDLHC01172744201812 September 2019Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the appeal as not pressed. The Court noted the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which stipulated a monetary limit of Rs. 1,00,00,000/- for the Department to pursue matters before the High Court. In view of the fact that the tax effect in the present case was Rs. 30,07,899/-, which was below the stipulated limit, the Court found no reason to proceed with the appeal. The ratio decidendi is that appeals filed by the Revenue with a tax effect below the prescribed monetary limit, as per departmental circulars, are to be considered as not pressed and disposed of accordingly. The operative direction was to dispose of the appeal as not pressed.

What were the facts?

The appellant, the Principal Commissioner of Income Tax-4, filed an appeal before the High Court of Delhi against an order concerning the respondent, H & S Software Development and Knowledge Management Centre Pvt. Ltd. The assessment year(s) are not specified in the judgment. The appeal challenges a prior decision, the details of which are not provided. The amount in dispute, referred to as the tax effect, is Rs. 30,07,899/-. The procedural history leading to this appeal is not detailed, other than the filing of the present appeal by the Revenue.

What were the issues?

The High Court was to decide whether to entertain the appeal filed by the Revenue. The primary issue revolved around the monetary limit for appeals set by the Department of Revenue. The Revenue, through its counsel, relied on a circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which fixed the monetary limit for pursuing matters before the High Court at Rs. 1,00,00,000/-. The Revenue's contention was that since the tax effect in the present case (Rs. 30,07,899/-) was below this prescribed limit, the appeal should not be pressed. The judgment does not record any specific arguments from the assessee's side, other than their representation through counsel.

AI-generated summary — verify with the full judgment below

$~24. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 821/2018

THE PR. COMMISSIONER OF INCOME TAX -4..... Appellant

Through: Mr. Raghvendra Singh, Adv.

versus

H & S SOFTWARE DEVELOPMENT AND KNOWLEDGE MANAGEMENT CENTRE PVT. LTD.

..... Respondent

Through: Mr. Suvinay K. Dash, Adv.

CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R % 12.09.2019

In the light of the circular dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section), Government of India, which fixes the monetary limit in respect of tax effect, inter alia, before the High Court in which the Department could pursue the matter as Rs. 1,00,00,000/- and in view of the fact that the tax effect in the present case is Rs.30,07,899/-, the present appeal is disposed of as not pressed.

VIPIN SANGHI, J

SANJEEV NARULA, J SEPTEMBER 12, 2019 N.Khanna

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