COMMISSIONER OF INCOME TAX vs. VIKARAM INTERNATONAL P.LTD.

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 1149/2007 . COMMISSIONER OF INCOME TAX ..... Appellant . Through Ms. P.L.Bansal, Adv. . versus . VIKARAM INTERNATONAL P.LTD. ..... Respondent Through Mr. T.N.Chopra with Mr. Shivendra Kr. Singh, Advs. . CORAM: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE V.B. GUPTA O R D E R 27.02.2008 . The Revenue is aggrieved by an order dated 28th February, 2007 passed by the Income Tax Appellate Tribunal, Delhi Bench ?G? in ITA No.4442/Del/2002 relevant for the Assessment Year 2001-2002. Apart from the fact that the tax effect in this case is Rs.2,42,397/- which is below the prescribed monetary limit for filing an appeal in this Court under Instruction No.2/2005 dated 24th October, 2005 issued by the Central Board of Direct Taxes, we find that no substantial question of law arises. ITA No.1149/2007 Page 1 of 3 It has been held by the Tribunal that service of notice to the Assessee was not valid. This is a finding of fact that does not raise a substantial question of law. It is of no use for the Revenue to contend that the tax effect is minimal and yet a substantial question of law arises and, therefore, this Court must interfere. If this argument is accepted, we will be flooded with cases where the tax effect is extremely low on the specious ground that a substantial question of law arises. We have repeatedly given our view on this but it has not had any effect on the Revenue and we are being overloaded with unnecessary appeals filed by the Revenue. The Registry of the Court is compelled to entertain and deal with frivolous matters which take up the time of the Court staff and also judicial time. We are left with little time to deal with cases involving a large amount of revenue. This is detrimental to the interests of the Revenue, but the Income-tax department does not seem to realize it and continues to expend its energy on trivial matters. Since, no substantial question of law arises, the appeal is dismissed with costs of Rs. 10,000/- which will be deposited by the ITA No.1149/2007 Page 2 of 3 Revenue by a cheque drawn in favour of the Registrar General of this Court within three weeks from today. List for compliance on 28th March, 2008. . . MADAN B. LOKUR, J . . . . . V.B. GUPTA, J FEBRUARY 27, 2008 rs . . ITA No.1149/2007 Page 3 of 3 . . .