COMMISSIONER OF INCOME TAX vs. ISCON GLOBAL PVT LTD

ITA/993/2010HC DelhiDLHC01001686201012 March 2020Bench: HON'BLE MR. JUSTICE VALMIKI J. MEHTA2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court allowed the application for early hearing and dismissed the appeal on the ground of low tax effect. The Court noted that the tax effect involved in the appeal was Rs. 68,59,340/-, which is below the revised monetary limit of Rs. 1 crore for filing appeals to the High Court as per CBDT Circular No. 17/2019. The Department had not filed any reply to the application, despite notice. The ratio decidendi is that appeals falling below the monetary threshold prescribed by the CBDT circulars are to be dismissed on grounds of low tax effect, provided the Department does not contest the applicability of the circular or the tax effect.

What were the facts?

The Commissioner of Income Tax (Appellant) filed an appeal against an order concerning ISCON GLOBAL PVT LTD (Respondent). The respondent filed an application seeking early hearing, stating that the appeal was covered by CBDT Circular No. 17/2019, which revised the monetary limit for departmental appeals to the High Court to Rs. 1 crore. The tax effect in the present appeal (ITA No. 993/2010) was stated to be Rs. 68,59,340/-. The Department had accepted notice on the application on October 18, 2019, but did not file a reply.

What were the issues?

1. Whether the appeal filed by the Department is to be dismissed on the ground of low tax effect, considering CBDT Circular No. 17/2019. Assessee's Contention: The respondent (assessee) argued that the appeal should be dismissed as the tax effect of Rs. 68,59,340/- is below the revised monetary limit of Rs. 1 crore stipulated in CBDT Circular No. 17/2019 for filing appeals to the High Court. They relied on the said circular. Revenue's Contention: No reply was filed by the Department to the application for early hearing, and consequently, no specific contention was recorded in the judgment regarding the applicability of the circular or the tax effect.

AI-generated summary — verify with the full judgment below

$~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 993/2010 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr.Kunal Sharma, Senior Standing Counsel with Ms.Zehra Khan, Advocate. versus ISCON GLOBAL PVT LTD ..... Respondent Through: Mr.Salil Kapoor, Mr.Sidharth Kanwar and Ms.Ananya Kapoor, Advocates for respondent No.1. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE SANJEEV NARULA O R D E R % 12.03.2020 CM APPL. 45918/2019 (early hearing) The present application has been filed on behalf of the respondent seeking early hearing in the present appeal filed by the Department. In the present application, it is stated that the appeal of Department - appellant in the case of the present assesee is covered by the low tax effect circular issued by CBDT dated 8th August, 2019 numbered as circular no. 17/2019, wherein monetary limits for filing of appeals by the Department to the High Court is revised to Rs. 1 crore and the tax effect involved in the present appeal (ITA No. 993/2010) is admittedly Rs.68,59,340/-. No reply to the present application has been filed despite notice having been accepted by the Digitally Signed By:SAPNA SETHI Signing Date:16.03.2020 15:21:45 Signature Not Verified

Department on 18th October, 2019. Consequently, the present application is allowed and appeal is dismissed on the ground of low tax effect. MANMOHAN, J SANJEEV NARULA, J MARCH 12, 2020 v Digitally Signed By:SAPNA SETHI Signing Date:16.03.2020 15:21:45 Signature Not Verified

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