COMMISSIONER OF INCOME TAX DELHI XI vs. RAMAN KUMAR SOOD

ITA - 718 / 2007HC Delhi30 July 20071 pages

For Petitioner: JAGDISH RAI GOEL

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The primary reason for dismissal was that the appeal was filed contrary to the CBDT circular, which discourages appeals with a tax effect below Rs. 4 lacs. The Court found that no substantial question of law arose from the appeal. Consequently, the appeal was dismissed on this ground. The Court also imposed costs of Rs. 5,000/- on the Income Tax Department, to be deposited with the Delhi High Court Legal Services Committee within four weeks. The operative direction was the dismissal of the appeal and the imposition of costs.

What were the facts?

The Commissioner of Income Tax Delhi XI (the Revenue) filed an appeal before the High Court of Delhi against an order concerning Raman Kumar Sood (the Assessee). The tax effect in this case was Rs. 1,53,000/-. The High Court noted that a circular of the Central Board of Direct Taxes (CBDT) stipulates that appeals should not ordinarily be filed in the High Court if the tax effect is less than Rs. 4 lacs. No reasons were provided for selecting this assessee for special treatment. The Court also observed the high volume of litigation initiated by the Income Tax Department.

What were the issues?

1. Whether the appeal filed by the Revenue raises a substantial question of law, considering the tax effect is below the threshold stipulated in the CBDT circular. The Revenue's contention was not recorded in the judgment. The Assessee's contention was not recorded in the judgment. The High Court's decision was based on the fact that the appeal was filed contrary to the CBDT circular, which stated that appeals should not ordinarily be filed if the tax effect is less than Rs. 4 lacs. The Court found no substantial question of law arising from the appeal.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF DELHI AT NEW DELHI . . . ITA 718/2007 . COMMISSIONER OF INCOME TAX DELHI XI ..... Appellant Through:Mr.J.R.Goel, Adv. . versus . RAMAN KUMAR SOOD ..... Respondent Through CORAM: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE V.B. GUPTA .

O R D E R 30.07.2007 The tax effect in this case is Rs.1,53,000/-.

There is a circular of the Central Board of Direct Taxes which is to the effect that unless the tax effect is more than Rs. 4 lacs, the Revenue should not ordinarily file an appeal in the High Court. No reasons have been given in the present case as to why this Assessee has been chosen for special treatment. ITA 718/2007 We find that the Income Tax Department is very heavily litigating matters and in this year alone more than 100 appeals have been filed per month, which may be some kind of a record set by the Government.

Since the appeal has been filed contrary to the circular of the Central Board of Direct Taxes, we dismiss this appeal on the ground that no substantial question of law arises.

For reasons recorded in ITA No.652/2007 we impose costs of Rs.5,000/- which will be deposited by the Income Tax Department by way of a cheque with the Delhi High Court Legal Services Committee within four weeks from today.

List on 17th September, 2007 for compliance. . . . MADAN B. LOKUR, J . . JULY 30, 2007 V.B. GUPTA, J Bisht ITA 718/2007

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