THE PR. COMMISSIONER OF INCOME TAX -9 vs. TIKONA INFINET LTD.

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ITA/998/2018HC DelhiDLHC01529423201712 September 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Delhi High Court disposed of the appeal without answering the issue/question raised, based on the statement made by the counsel for the Revenue. The Revenue stated that the tax effect was less than Rs. 50 lakhs and, in terms of Circular No. 3 of 2018, the appeal could be disposed of without deciding the issue. The Court clarified that this order would not affect the ratio of the decisions relied upon by the assessee, which included Commissioner of Income-Tax Vs. BSES Yamuna Powers Ltd. (2013) 358 ITR 47 (Delhi). No specific finding was given on the merits of the depreciation claim.

What were the facts?

The appellant, Principal Commissioner of Income Tax-9, filed an appeal before the Delhi High Court against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is Tikona Infinet Ltd. The appeal pertains to assessment year(s) not specified in the judgment. The core issue revolves around depreciation on computer accessories and peripherals. The Revenue sought to dispose of the appeal without answering the question raised, citing Circular No. 3 of 2018, as the tax effect was less than Rs. 50 lakhs. The assessee contended that the issue of depreciation on computer accessories and peripherals was covered by several High Court decisions, including Commissioner of Income-Tax Vs. BSES Yamuna Powers Ltd. (2013) 358 ITR 47 (Delhi).

What were the issues?

1. Whether the appeal filed by the Revenue should be disposed of without answering the issue raised, given the tax effect is less than Rs. 50 lakhs, as per Circular No. 3 of 2018? (Question of law) Contentions: Assessee: The issue of depreciation on computer accessories and peripherals is covered by several decisions of the High Court, specifically citing Commissioner of Income-Tax Vs. BSES Yamuna Powers Ltd. (2013) 358 ITR 47 (Delhi). Revenue: The tax effect in the present appeal is less than Rs. 50 lakhs, and therefore, in terms of Circular No. 3 of 2018, the appeal may be disposed of without answering the issue/question raised, which may be left open.

AI-generated summary — verify with the full judgment below

$~24 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 998/2018

THE PR. COMMISSIONER OF INCOME TAX -9..... Appellant

Through: Mr. Ruchir Bhatia, Advocate

versus

TIKONA INFINET LTD.

..... Respondent

Through: Mr. Aniket Aggarwal, Advocate

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

O R D E R %

12.09.2018

CM No.37173/2018

Allowed, subject to all just exceptions, Application is disposed of. CM Nos.37171/2018 & 37174/2018

Delay in filing and re-filing of the appeal is condoned, as there is no opposition by learned counsel for the Revenue. The applications are allowed.

ITA No.998/2018 & CM No.37172/2018 Counsel for the appellant-Revenue states that the tax effect in the present appeal is less than 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 the issue/question raised, which may be left open. Counsel for the respondent-assessee states that the issue

of depreciation on computer accessories and peripherals is covered by several decisions of this court, including Commissioner of Income- Tax Vs. BSES Yamuna Powers Ltd. (2013) 358 ITR 47 (Delhi). In view of the statement made by the counsel for the Revenue, the appeal is disposed of without answering the issue/question raised. We, however, clarify that this order would not in any way affect the ratio of the decisions relied upon by the respondent-assessee.

SANJIV KHANNA, J

CHANDER SHEKHAR, J SEPTEMBER 12, 2018 tp

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