DIRECTOR OF INCOME TAX (EXEMPTION) vs. CHARITABLE TRUST

ITA/975/2005HC Delhi03 July 20202 pages

AI SummaryDismissed

What did the High Court hold?

The Delhi High Court dismissed the appeal on the grounds of low tax effect. The Court noted that the income tax demand, including interest till December 31, 2001, amounted to Rs. 38,82,208/-. This amount was found to be below the threshold limit of Rs. 1,00,00,000/- stipulated in CBDT Circular No. 17/2019 dated August 8, 2019, read with Circular No. 03/2018 and its amendments dated August 20, 2018. Consequently, the appeal was dismissed without delving into the merits of the case. The ratio decidendi is that appeals falling below the monetary threshold prescribed by CBDT circulars for filing appeals are liable to be dismissed on that ground.

What were the facts?

The appeal was filed by the Director of Income Tax (Exemption) against an order passed by the Commissioner of Income Tax Appellate Tribunal (ITAT). The ITAT order concerned the assessment of Sir Sobha Singh Public Charitable Trust. The total income tax demand, including interest up to December 31, 2001, was stated to be Rs. 38,82,208/-. The appeal was heard by the Delhi High Court through video conferencing. The parties referred to the ITAT order in their submissions.

What were the issues?

1. Whether the present appeal is maintainable on account of low tax effect, considering the threshold limit prescribed by CBDT Circulars? (Question of law) The appellant (Revenue) contended that the appeal should be heard on merits. The respondent (Assessee) argued that the appeal should be dismissed due to low tax effect, citing CBDT Circular No. 17/2019 dated August 8, 2019, read with Circular No. 03/2018 and its amendments dated August 20, 2018. The respondent stated that the income tax demand, along with interest till December 31, 2001, was Rs. 38,82,208/-, which is lower than the threshold limit of Rs. 1,00,00,000/- prescribed in the said circulars.

AI-generated summary — verify with the full judgment below

#R-11 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 975/2005

DIRECTOR OF INCOME TAX (EXEMPTION) ..... Appellant Through: Mr. Abhishek Maratha, Advocate.

versus

SIR SOBHA SINGH PUBLC CHARITABLE TRUST ..... Respondent Through: Mr. Vaibhav Kulkarni with Mr. Udit Naresh, Advocates

CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R %

03.07.2020 The appeal has been heard by way of video conferencing. Learned counsel for the parties refer to the order passed by the Commissioner of Income Tax Appellate Tribunal in the present case to contend that the income tax demand along with interest till 31st December, 2001 was Rupees Thirty Eight Lakhs Eighty Two Thousand Two Hundred Eight (Rs. 38,82,208/-). Since it is lower than the threshold limit of Rupees One Crore (Rs. 1,00,00,000/-) prescribed in Circular no. 17/2019 dated 8 August, 2019 read with Circular no. 03/2018 and its amendments dated 20th August, 2018 issued by the Central Board of Direct Taxes, the present appeal is dismissed on account of low tax effect. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/04/2026 at 21:39:39

The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.

MANMOHAN, J

SANJEEV NARULA, J JULY 03, 2020 rn

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/04/2026 at 21:39:39

Recent GST High Court judgments

Search GST case law →