THE COMMISSIONER OF INCOME TAX V vs. RANBAXY LABORATORIES LTD.

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ITA/967/2010HC DelhiDLHC01040171200916 November 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI1 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal disposed of the present appeal without examining the question/issue raised. This decision was based on the Revenue's statement that the tax effect was below Rs.50 lakhs, as per Circular No.3 of 2018. The Tribunal explicitly stated that the issue/question is left open. Liberty was granted to the Revenue to file an application for revival of the appeal if it is found that the matter is covered by an exception. The ratio of this decision is that appeals with a tax effect below a certain threshold, as stipulated by administrative circulars, can be disposed of without merits, preserving the right to revival under specific circumstances.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Revenue) against Ranbaxy Laboratories Ltd. (Assessee). The assessment year(s) are not specified. The order or action under challenge is the ITAT's decision, though the specific decision is not detailed. The procedural history involves the Revenue stating that the tax effect in the present appeal is below Rs.50 lakhs. This statement was made in light of Circular No.3 of 2018 dated 11th July, 2018.

What were the issues?

1. Whether the appeal should be disposed of without answering the question/issue raised, given the tax effect is below Rs.50 lakhs as per Circular No.3 of 2018? (Question of procedure/policy) Assessee's Contention: Not recorded. Revenue's Contention: The Revenue stated that the tax effect in the present appeal is below Rs.50 lakhs and, therefore, in terms of Circular No.3 of 2018 dated 11th July, 2018, the appeal may be disposed of without answering or examining the question/issue raised. The Revenue clarified that the issue/question is left open.

AI-generated summary — verify with the full judgment below

$~13 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 967/2010 THE COMMISSIONER OF INCOME TAX V ..... Appellant Through: Mr. Ashok Manchanda, Sr. St. Counsel for ITD with Mr.Aditya, Adv. versus RANBAXY LABORATORIES LTD. ..... Respondent Through: Mr.Mayank Nagi with Mr.Hardeep Singh Chawla, Advs. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI O R D E R % 16.11.2018 Counsel for the Revenue states that the tax effect in the present appeal is below Rs.50 lakhs and hence, in terms of Circular No.3 of 2018 dated 11th July, 2018, the appeal may be disposed of without answering or examining the question/issue raised. It may be clarified that the issue/question is left open. Taking the statement on record, we dispose of the present appeal without examining the question/issue raised, which is left open. Liberty is granted to the Revenue to file an application for revival of the appeal in case it is found that the matter is covered by an exception. SANJIV KHANNA, J. ANUP JAIRAM BHAMBHANI, J. NOVEMBER 16, 2018/uj

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