COMMISSIONER OF INCOME TAX-IV vs. M/S DELHI BRASS AND METAL WORKS LTD

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ITA/906/2010HC DelhiDLHC01144104200901 October 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted the submission by the Revenue's Senior Standing Counsel that the tax effect involved in the appeal was below Rs. 50,00,000/-. In accordance with Circular No. 3/2018 dated 11.07.2018, the Court disposed of the appeal without examining the issue or question raised. The Court clarified that the issue/question remained open and granted liberty to the Revenue to file an application for revival of the appeal if it was found to be covered by an exception to the circular. The ratio is that appeals with a tax effect below a certain threshold, as per CBDT circulars, can be disposed of on that procedural ground without deciding the merits, with liberty to seek revival if an exception applies.

What were the facts?

The appeal was filed by the Revenue (Commissioner of Income Tax-IV) against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is M/s Delhi Brass and Metal Works Ltd. The assessment year(s) are not specified. The Revenue stated that the tax effect involved in the appeal was below Rs. 50,00,000/-. This was in terms of Circular No. 3/2018 dated 11.07.2018.

What were the issues?

1. Whether the appeal should be disposed of without answering the issue/question raised, given the tax effect is below Rs. 50,00,000/-, as per Circular No. 3/2018. The Revenue contended that the tax effect was below the threshold stipulated in Circular No. 3/2018, and therefore, the appeal could be disposed of without delving into the merits of the issue. The judgment does not record any specific arguments from the assessee on this procedural point.

AI-generated summary — verify with the full judgment below

$~28 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 906/2010

COMMISSIONER OF INCOME TAX-IV ..... Appellant

Through : Mr.Zoheb Hossain, Sr.Standing counsel for

the Revenue.

versus

M/S DELHI BRASS AND METAL WORKS LTD ..... Respondent

Through : Mr.K.N.Ahuja with Mr.Manu Giri,

Advocates. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR

O R D E R %

01.10.2018 Learned Senior Standing counsel for the appellant/Revenue states that the tax effect involved in this appeal is below Rs.50,00,000/- and hence in terms of circular No.3/2018 dated 11.7.2018 the appeal may be disposed of, without answering the issue/question raised. Recording the aforesaid, the appeal is disposed of, without examining the issue/question raised. We clarify that the issue/question is left open. We also grant liberty to the Revenue to file an application for revival of the present appeal, if it is found that the case is covered by an exception.

SANJIV KHANNA, J.

CHANDER SHEKHAR, J. OCTOBER 01, 2018/sa

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