COMNR.OF I.TAX vs. ORISSA INDUS.INFRAST

ITA/94/2009HC OrissaODHC01028500200908 May 2017Bench: MR. JUSTICE I.MAHANTY,MR. JUSTICE BISWAJIT MOHANTY2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Delhi High Court held that in terms of Circular No. 3/2018, dated 11.7.2018, the substantial question of law need not be answered when the tax effect is below Rs. 50,00,000/-. Consequently, the appeals were disposed of without answering the substantial question of law, which was expressly left open. The Revenue was granted liberty to file an application for revival of the appeals if they fall under any exceptions to the circular. The ratio decidendi is that appeals with a tax effect below a certain threshold, as defined by revenue circulars, can be disposed of without adjudicating the merits of the substantial question of law.

What were the facts?

These are two appeals filed by the Revenue, Commissioner of Income Tax, Central-I and Central-L, against M/s Seasons Textiles Ltd. The appeals challenge orders from the Income Tax Appellate Tribunal (ITAT). The tax effect in both appeals is below Rs. 50,00,000/-. The judgment does not specify the assessment years or the specific orders under challenge, nor does it detail the procedural history leading to the ITAT's decision. The appeals were heard by the Delhi High Court.

What were the issues?

The primary issue is whether the substantial question of law needs to be answered given the tax effect. The Revenue, through its senior standing counsel, likely sought to have the substantial question of law decided on merits. The judgment does not record any specific arguments from the Revenue regarding the substantive grounds of appeal, nor does it record any arguments from the Respondent assessee, M/s Seasons Textiles Ltd. The judgment focuses solely on the implications of the tax effect as per Circular No. 3/2018.

AI-generated summary — verify with the full judgment below

$~R2&3 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 94/2009 COMMISSIONER OF INCOME TAX, CENTRAL-L.... Appellant Through: Mr. Ashok Manchanda, Senior Standing Counsel versus M/S SEASONS TEXTILES LTD. Respondent Through WITH + ITA 237/2009 COMMISSIONER OF INCOME TAX, CENTRAL-I Appellant Through: Mr. Zohaib Hossain, Senior Standing Counsel with Mr. Deepak Anand, Junior Standing Counsel versus M/S SEASONS TEXTILES LTD. Respondent Through CORAM: HON'BLE MR. JUSTICE SANHV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR ORDER % 13.09.2018 In these two appeals by the Revenue, the tax effect is below Rs.50,00,000/-. Hence, in terms of circular No.3/2018, dated 11.7.2018, the substantial question of law need not be answered. In view of the aforesaid position, the appeals are disposed of, without answering the substantial question of law, which is also left open. However, Signed By:RAM DATT Signing Date:09.10.2024 15:41 Certify that the digital and physical file have been compared and the digital data is as per the physical file and no page is missing. Signature Not Verified

n. we grant liberty to the Revenue to file an application for revival of the appeals, in case the appeals are covered by any exceptions. SANJIV KHANNA, J. CHAIvlteR^EKHAR, J. SEPTEMBER 13,2018 tp

Latest GST High Court judgments

Search GST case law →