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The High Court dismissed the appeal filed by the Revenue. The dismissal was based on the submission made by the Revenue's counsel that the appeal was not being pursued due to a low tax effect, falling below the monetary threshold stipulated in CBDT Circular No.17/2019. The Court noted that the substantial questions of law framed by the Revenue were left open. Liberty was granted to the Revenue to file a petition to restore the appeal if the tax effect was found to be above the threshold limit, for a decision on merits. No costs were imposed. The specific findings of the ITAT on the issues of Section 50C and the DVO report were not adjudicated upon by the High Court.
The High Court set aside the order of the Tribunal regarding the revised computation of income at Rs. 1,27,28,414 and remanded the issue back to the Assessing Officer for fresh consideration. The Court noted the assessee's submission that Rs. 34,13,386 was not received and was written back in a subsequent year, and that this amount was erroneously included in the revised computation. The Court also set aside the Tribunal's finding confirming the disallowance of Rs. 30,00,000 as undisclosed investment under Section 69 of the Act and remanded this issue back to the Assessing Officer for fresh consideration. The Court acknowledged the assessee's claim that this amount was received from Indira Productions Pvt. Ltd. as an advance for a film and that confirmation letters were awaited. The Court directed the assessee to cooperate with the assessment proceedings. The substantial questions of law were left open.
The High Court allowed the appeal, setting aside the impugned order of the ITAT. The Court noted that the ITAT had dismissed the assessee's appeal on the ground that it was defective, specifically citing an error in the assessee's initial ('I' instead of 'M'). The Court observed that this was an insignificant or inadvertent error that ought to have been permitted to be rectified, especially considering Rule 12 of the ITAT Rules, 1963, which provides for such procedures. The Court also noted that the defect memo and hearing notice were not returned to the assessee. The High Court found the dismissal to be on a hyper-technical ground and referred to its own prior decision in a similar case (T.C.A.No.2 of 2021) involving the same assessee. The appeal was restored to the file of the ITAT to be heard and decided on merits. The substantial questions of law were left open. No costs were awarded.
The High Court dismissed the appeals filed by the Revenue on the grounds of low tax effect, as per CBDT Circular No.17/2019. The Court noted that the Revenue's counsel submitted that the appeals were not being pursued because the tax effect was less than the increased monetary limit of Rs.1 crore for appeals to the High Court. Consequently, the substantial questions of law framed were left open. The Revenue was granted liberty to seek restoration of the appeals if the tax effect was found to be above the threshold limit. The operative direction was the dismissal of the appeals. No decision was made on the merits of the substantial questions of law.
The High Court did not decide the substantial questions of law. It noted the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, which provides for the resolution of disputed tax matters. The learned counsel for the assessee informed the Court that a declaration had been filed under Section 4 of this Act on 07.12.2020. Consequently, the Court found no useful purpose in keeping the appeal pending. The Tax Case Appeal was disposed of on the ground that the assessee had availed the benefit under the Vivad Se Vishwas Act. The assessee was granted liberty to restore the appeal if the decision on the declaration filed under the Act was not in their favour. In such an event, the Registry was directed to entertain a Miscellaneous Petition for Restoration without insisting on condonation of delay. The substantial questions of law were left open.
The High Court did not decide the substantial questions of law. It noted the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, and was informed by the assessee that a declaration had been filed under this Act. Consequently, the Court found no useful purpose in keeping the appeal pending. The Tax Case Appeal was disposed of on the ground that the assessee had availed the benefit under the Vivad Se Vishwas Act. The Court granted liberty to the assessee to restore the appeal if the decision on the declaration filed under Section 4 of the Act was not in the assessee's favour. In such an event, the Registry was directed to entertain a Miscellaneous Petition for Restoration without insisting on condonation of delay. The substantial questions of law were left open.
The High Court dismissed the appeals filed by the Revenue. The dismissal was based on the submission by the Revenue's counsel that the appeals were not being pursued due to low tax effect, as per CBDT Circular No. 17/2019. This circular increased the monetary limit for filing appeals before the High Court to Rs. 1 crore, and the tax effect in these cases was below this threshold. Consequently, the substantial questions of law were left open. The Revenue was granted liberty to seek restoration of the appeals if the tax effect was found to be above the threshold limit. The connected miscellaneous petitions were also closed. No decision was made on the merits of the substantial questions of law.
The High Court decided not to adjudicate the substantial questions of law due to subsequent developments. The court noted the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, and was informed that the assessee had filed a declaration under Section 4 of this Act. Consequently, the appeal was disposed of on the ground that the assessee had availed the benefit of the Act. The Department was directed to process the application at the earliest. The assessee was granted liberty to restore the appeal if the ultimate decision on the declaration was not in their favor. The substantial questions of law were left undecided. The operative direction was to dispose of the appeal with liberty to restore.
The High Court decided not to adjudicate the substantial questions of law due to subsequent developments. The Court noted that the assessee had availed the benefit of the Direct Tax Vivad Se Vishwas Act, 2020, by filing a declaration. Consequently, no useful purpose would be served by keeping the appeal pending. The appeal was disposed of on the ground that the assessee had filed a declaration under the Vivad Se Vishwas Act. The Court directed the Department to process the application at the earliest and communicate the decision to the assessee. The assessee was granted liberty to restore the appeal if the ultimate decision on the declaration was not in their favour. In such an event, the Registry was directed to entertain the restoration petition without insisting on a condonation of delay application. The substantial questions of law were expressly left undecided.
The High Court noted that it was not necessary to decide the substantial questions of law due to subsequent developments, specifically the enactment of the Direct Tax Vivad Se Vishwas Act, 2020. The Court was informed that the assessee had filed a declaration under Section 4 of this Act. Consequently, the appeal was disposed of on the ground that the assessee had availed the benefit of the Vivad Se Vishwas Act. The Court directed the Department to process the application at the earliest and communicate the decision. The assessee was granted liberty to restore the appeal if the decision on the declaration was not in their favor. The substantial questions of law were left undecided.
The High Court decided not to adjudicate the substantial questions of law due to the enactment of the Direct Tax Vivad Se Vishwas Act, 2020. The court was informed that the assessee had filed a declaration under Section 4 of the Act. Consequently, the appeal was disposed of as no useful purpose would be served by keeping it pending. The court granted liberty to the assessee to restore the appeal if the decision by the Department under the Vivad Se Vishwas Act was not in their favour. The substantial questions of law were left open. The operative direction was to dispose of the appeal with the aforementioned liberty, and no costs were awarded.
The High Court dismissed the appeal on account of low tax effect, citing Circular No. 17/2019 of the CBDT, which increased the monetary limit for filing appeals before the High Court to Rs. 1 Crore. The Court noted that the tax effect in this case was below the threshold limit. Consequently, the substantial questions of law framed were left open. The Revenue was granted liberty to file a petition to restore the appeal if the tax effect was found to be above the threshold limit, allowing it to be heard and decided on merits. No costs were awarded. The specific findings on each of the six substantial questions of law were not adjudicated upon due to the dismissal on procedural grounds.
The High Court recorded the submission made by the learned counsel for the appellant seeking permission to withdraw the Tax Case Appeal. Accordingly, the Court dismissed the Tax Case Appeal as withdrawn. No costs were awarded. The connected Miscellaneous Petition was also closed. No specific issues were decided on merits as the appeal was withdrawn.
The High Court noted that the assessee had filed a declaration under the Vivad Se Vishwas Act, 2020. In light of this subsequent event, the Court directed the Competent Authority to process the declaration and pass appropriate orders expeditiously. The appeal was disposed of with liberty granted to the assessee to restore the appeal if the ultimate decision on their Vivad Se Vishwas declaration was not in their favour. Upon such a request, the Registry was directed to entertain the petition for restoration without insisting on a condonation of delay application. Consequently, the substantial questions of law framed were left open and not decided on merits. No costs were awarded.
The High Court answered substantial question of law No.1 in favour of the assessee, holding that the assessee is entitled to depreciation at the rate of 10% on roads. For substantial questions of law Nos.2 and 3 concerning depreciation on leasehold rights, the Court found that the lower authorities and the Tribunal did not adequately consider the factual position and the specific agreements. Therefore, these issues were remanded to the Assessing Officer for a fresh decision after a threadbare analysis of the agreement dated 21.9.2005 between the assessee and SIPCOT, and considering the assessee's alternate plea for revenue expenditure. Substantial question of law No.4 was answered against the Revenue, following the Court's own prior decision in the assessee's case (TCA.No.485 of 2020), which held that Section 14A read with Rule 8D is inapplicable if there is no exempt income received or earned. The appeals were partly allowed.
The High Court noted that the assessee intended to avail the benefit of the Vivad Se Vishwas Scheme, 2020. Consequently, the Court deemed it unnecessary to decide the substantial questions of law. The Court directed the assessee to file Form No.1 under the Vivad Se Vishwas Act, 2020. The Competent Authority was instructed to process these applications expeditiously, preferably within six weeks. The appeals were disposed of with liberty to the assessee to restore them if the ultimate decision under the Vivad Se Vishwas Scheme is not in their favor. In such an event, the Registry shall entertain the restoration prayer without insisting on a condonation of delay application. The substantial questions of law were left open.
The High Court allowed the appeal in part. Regarding substantial questions of law nos. 1 and 2 concerning Section 14A disallowance, the Court found that the Tribunal had not properly dealt with the assessee's contentions, particularly regarding the absence of expenditure and income from investments. Consequently, these issues were remanded to the Assessing Officer for a fresh decision on merits. Substantial question of law no. 3 regarding interest disallowance was not pressed by the assessee as the Tribunal had already remanded it to the AO, who subsequently granted relief. For substantial question of law no. 4, concerning the eligibility of carbon credit for deduction under Section 80IA, the Court held in favour of the assessee. The Court noted that the sale of carbon credit has been held to be capital in nature by various High Court decisions. Therefore, it falls outside the purview of gross total income and cannot be considered for deduction under Section 80IA. The Tribunal's failure to consider this aspect and instead focusing on the Section 80IA claim was deemed erroneous and perverse. The Court also acknowledged the confusion regarding the taxability of carbon credits prior to the introduction of Section 115BBG.
The High Court disposed of the appeals in light of a subsequent event: the assessee had filed a declaration under the Vivad Se Vishwas Scheme. The Court directed the Competent Authority to process the declaration under the Direct Tax Vivad Se Vishwas Act, 2020, and pass appropriate orders expeditiously. The assessee was granted liberty to restore the appeals if the decision on the Vivad Se Vishwas declaration was not in its favour. The substantial questions of law framed were left open, meaning the Court did not render a decision on the merits of these questions. No costs were imposed. The operative direction was to process the Vivad Se Vishwas application and allowed for restoration of appeals if necessary.
The High Court, by following its earlier decision in Marg Ltd. vs Commissioner of Income Tax, held that the disallowance under Rule 8D of the Income-tax Rules, 1962, read with Section 14A of the Act, can never exceed the exempt income earned by the assessee during the particular assessment year. The Court further held that without recording satisfaction that the apportionment of disallowable expenditure made by the assessee with respect to exempt income is not acceptable, the Assessing Authority cannot resort to the computation method under Rule 8D. The Court found that the disallowance made by the Assessing Officer, even if computed at 0.5% of average investment, far exceeded the exempt dividend income. The Court also noted that the Assessing Authority did not record reasons for rejecting the assessee's apportionment or claim of no expenditure. Consequently, the substantial questions of law were answered in favour of the assessee and against the Revenue.
The High Court noted that the assessee had filed a declaration under the Vivad Se Vishwas Act, 2020. In light of this subsequent development, the Court directed the Competent Authority to process the application/declaration under the Act and pass appropriate orders expeditiously. The appeal was disposed of with liberty to the assessee to restore it if the decision on their declaration was not in their favour. The Court explicitly stated that the substantial questions of law framed were left open, meaning they were not decided on merits. No costs were awarded. The operative direction was to process the Vivad Se Vishwas application and grant liberty to restore the appeal.
The High Court noted that the assessee had filed a declaration under the Vivad Se Vishwas Scheme, 2020, and was awaiting orders. In light of this subsequent event, the Court directed the Competent Authority to process the application under the Direct Tax Vivad Se Vishwas Act, 2020, and pass appropriate orders expeditiously. The assessee was granted liberty to restore the appeal if the decision on their declaration was not in their favour. If such a prayer was made, the Registry was directed to entertain it without insisting on a condonation of delay application. Consequently, the substantial questions of law framed were left open, and the tax case appeal was disposed of. No costs were awarded. The judgment does not provide findings on the merits of the substantial questions of law.
The High Court dismissed the appeal filed by the Revenue. The dismissal was based on the submission by the Revenue's counsel that the appeal was not being pursued due to a low tax effect, in terms of CBDT Circular No. 17/2019. This circular increased the monetary limit for filing appeals before the High Court to Rs. 1 Crore, and the tax effect in this case was below that threshold. Consequently, the substantial questions of law framed for consideration were left open. The Revenue was granted liberty to file a petition for restoration if the tax effect was found to be above the fixed threshold limit, allowing the appeal to be heard on merits. No costs were imposed.
The High Court, by following its earlier decision in the case of The Commissioner of Income Tax vs A.A. Antony (TCA.No.432 of 2020 dated 18.12.2020), dismissed the appeal filed by the Revenue. The Court held that the substantive right of appeal should not be denied on technical grounds, especially considering the circumstances prevailing at the time of filing and the CBDT's circular which was a one-time measure. The Court found no error in the ITAT exercising its discretion in favour of the assessee. The operative directions from the cited case indicated that the appeals need not have been rejected by the CIT(A) on the ground of not being e-filed within the period of limitation. The Court found it would be harsh to direct the assessees to file applications for condonation of delay, leading to further litigation. Therefore, the substantial questions of law were answered against the Revenue, and the appeal was dismissed, with the matter remitted to the CIT(A) for disposal on merits. No costs were awarded.
The High Court, by following its earlier decision in the case of The Commissioner of Income Tax vs A.A.Antony (TCA.No.432 of 2020 dated 18.12.2020), dismissed the appeal filed by the Revenue. The Court held that the substantive right of appeal should not be denied on technical grounds, especially considering the circular issued by the CBDT as a one-time measure to address the transition to e-filing. The Court acknowledged that the appeals were from the year 2016-2017 and that directing assessees to file fresh condonation petitions would lead to further litigation. The reasoning was that the ITAT had exercised its discretion in favour of the assessees, and given the fact situation prevailing at the time of the CBDT circular's issuance, the Tribunal's view was not erroneous. The substantial questions of law were answered against the Revenue. The operative direction was that the appeal shall be heard by the CIT(A) and decided on merits. No costs were awarded.
The High Court dismissed the appeal filed by the Revenue. The Court held that the Tribunal was correct in confirming the order of the Commissioner of Income Tax (Appeals), which had restricted the disallowance under Section 14A read with Rule 8D to the extent of the exempt income earned by the assessee. The Tribunal had relied on the decision of the Delhi High Court in the case of Joint Investments Ltd. vs CIT [372 ITR 694(Del)]. The High Court found no error in the Tribunal's order and concluded that no substantial question of law arose for consideration. The ratio decidendi is that disallowance under Section 14A read with Rule 8D should not exceed the amount of exempt income earned by the assessee. The appeal was dismissed, and the substantial question of law was answered against the Revenue.
The High Court noted that the assessee had filed a declaration under the Vivad Se Vishwas Scheme on December 28, 2020. In light of this subsequent event, the Court directed the Competent Authority to process the application/declaration under the Direct Tax Vivad Se Vishwas Act, 2020, and pass appropriate orders expeditiously. The assessee was granted liberty to restore the appeal if the decision on their declaration was not in their favour. Consequently, the substantial questions of law framed by the Revenue were left open, and the Tax Case Appeal was disposed of without a decision on the merits of the case. No costs were awarded. The operative direction was to process the Vivad Se Vishwas application and allow restoration of the appeal if necessary.
The Revenue submitted that it was not pursuing the appeal due to low tax effect, as per CBDT Circular No.17/2019, which increased the monetary limit for appeals to the High Court to Rs.1 Crore. The tax effect in this case was below this threshold. Consequently, the High Court dismissed the appeal on the ground of low tax effect. The substantial questions of law were left open. Liberty was granted to the Revenue to file a petition to restore the appeal if the tax effect was found to be above the threshold limit. No costs were awarded.
The High Court, by following its previous decision in The Commissioner of Income Tax vs A.A.Antony (TCA.No.432 of 2020 dated 18.12.2020), dismissed the appeal filed by the Revenue. The Court held that the substantive right of appeal should not be denied on technical grounds, especially considering the circumstances prevailing in 2016 when the CBDT Circular 20/2016 was issued as a one-time measure. The Court found no error in the Tribunal exercising its discretion in favour of the assessee. The reasoning was that directing the assessee to file a fresh condonation application would be harsh and lead to further litigation. The Court acknowledged that the delay in some cases was significant (more than 400 or 900 days) but reiterated that it was taking note of the fact situation at the relevant time. The substantial questions of law were answered against the Revenue. The appeal was remitted to the Commissioner of Income Tax (Appeals) to be heard and decided on merits. No costs were awarded.
The High Court dismissed the appeal filed by the Revenue, following its own earlier decision in Commissioner of Income Tax vs A.A. Antony (TCA.No.432 of 2020 dated 18.12.2020). The Court held that the substantive right of appeal should not be denied on technical grounds, especially considering the circumstances prevailing in 2016 when e-filing was introduced and the CBDT Circular 20/2016 was issued as a one-time measure. The Court found no error in the ITAT's exercise of discretion in favour of the assessee. The Court noted that directing the assessee to file a condonation petition would be harsh and lead to further litigation. The substantial questions of law were answered against the Revenue. The appeal was remitted to the CIT(A) to be heard and decided on merits. The Court explicitly left the substantial questions of law open for consideration in future cases.
The High Court did not decide the substantial questions of law on merits. The Revenue's counsel submitted that the appeal was not being pursued due to low tax effect, citing CBDT Circular No.17/2019 which increased the monetary limit for appeals to the High Court to Rs.1 Crore. As the tax effect in this case was below the threshold, the appeal was dismissed on this ground. The substantial questions of law were expressly left open. Liberty was granted to the Revenue to seek restoration of the appeal if the tax effect was found to be above the threshold limit.
The High Court did not decide the substantial question of law. The Court noted that the assessee intended to avail the benefit of the Vivad Se Vishwas Scheme (VVS Scheme), enacted by the Direct Tax Vivad Se Vishwas Act, 2020. The Court acknowledged that the Act provides an option to resolve pending tax disputes. The Court directed the assessee to file Form No.1 under the VVS Scheme and instructed the Competent Authority to process the application expeditiously, preferably within six weeks. The Tax Case Appeal was disposed of with liberty granted to the assessee to restore the appeal if the decision on their VVS declaration is not in their favour. The substantial question of law was left open. No operative directions were issued regarding the disallowance itself, as the matter was being resolved under the VVS Scheme.
The High Court noted that the Government of India had enacted the Direct Tax Vivad Se Vishwas Act, 2020, to provide for the resolution of disputed tax matters. The assessee expressed an intention to avail this scheme. Consequently, the Court deemed it unnecessary to decide the substantial questions of law raised. The Court directed the assessee to file Form No.I and the Competent Authority to process the application expeditiously, preferably within six weeks. The appeal was disposed of with liberty to the assessee to restore it if the decision on the declaration under the Vivad Se Vishwas Act is not in their favour. The substantial questions of law were left undecided. No costs were awarded.
The High Court noted that the assessee intended to avail the benefit of the Vivad Se Vishwas Scheme, 2020. Consequently, the Court deemed it unnecessary to decide the substantial questions of law raised. The Court directed the assessee to file Form No.I under the VVS Scheme and for the Competent Authority to process the application expeditiously, preferably within six weeks. The Tax Case Appeal was disposed of with liberty to the assessee to restore the appeal if the decision on the declaration under the VVS Scheme was not in their favour. The substantial questions of law were left open. The operative direction was to dispose of the appeal with liberty to restore.
The High Court noted that the assessee intended to avail the benefit of the Vivad Se Vishwas Scheme, 2020 (Act 3 of 2020). Given this development, the Court deemed it unnecessary to decide the substantial questions of law. The Court referred to the provisions of the Vivad Se Vishwas Act, 2020, which provides for the resolution of disputed tax matters pending at various appellate levels. The assessee was granted liberty to restore the appeal if the decision on their declaration under the VVS Scheme was not in their favour. The Court directed the assessee to file Form No. I and the Competent Authority to process the application expeditiously, preferably within six weeks. The Tax Case Appeal was disposed of with this liberty, leaving the substantial questions of law open. No costs were awarded.
The High Court noted that the assessee had filed a declaration under the Vivad Se Vishwas Scheme, 2020, and was awaiting orders. In light of this subsequent event, the Court directed the Competent Authority to process the application under the Direct Tax Vivad Se Vishwas Act, 2020, and pass appropriate orders expeditiously. The assessee was granted liberty to restore the appeal if the decision on their declaration was not in their favour. Consequently, the substantial questions of law raised in the appeal were left undecided. The appeal was disposed of with this liberty, and no costs were imposed. The operative direction was to process the Vivad Se Vishwas application and grant liberty to restore the appeal.
The High Court dismissed the appeal filed by the Revenue. The Court held that, similar to the facts in CIT Vs. Celebrity Fashion Ltd., the Assessing Officer had not recorded any finding as to how Sub-Section (1) of Section 14A of the Act was attracted. The Court reiterated its earlier finding in Celebrity Fashion Ltd. that only expenditure proved to be incurred in relation to earning tax-free income could be disallowed under Section 14A, and the provision could not be extended to disallow expenditure assumed to have been incurred for earning tax-free income. The Court also noted that the ITAT's decision was in line with the High Court's ruling in Celebrity Fashion Ltd., which in turn followed CIT v. Chettinad Logistics Pvt. Ltd., where the Supreme Court had dismissed SLPs against the latter decision. Therefore, the substantial questions of law were answered against the Revenue. No costs were awarded.
The High Court noted that the assessee had filed a declaration under the Vivad Se Vishwas Scheme on 24.12.2020 and was awaiting orders. Consequently, the Court directed the Competent Authority to process the application under the Direct Tax Vivad Se Vishwas Act, 2020, and pass appropriate orders expeditiously. The assessee was granted liberty to restore the appeals if the decision under the Vivad Se Vishwas Act was not in their favour. Upon such a request, the Registry was to entertain the petitions for restoration without insisting on condonation of delay. The substantial questions of law were expressly left undecided. No costs were awarded.
The High Court, following its own previous decision in CIT Vs. A.A. Antony & others (TCA. Nos.432, 433 and 436 of 2020 dated 18.12.2020), held that the order passed by the Tribunal does not warrant interference. In the cited case, the Court observed that the substantive right of appeal should not be denied on a technical ground, especially considering the CBDT Circular which was a one-time measure. The Court found that the Tribunal had exercised its discretion in favour of the assessees, taking into account the fact situation prevailing at the relevant time. The Court noted that directing assessees to file applications for condonation of delay would be harsh and lead to further litigation. Therefore, the appeals filed by the Revenue were dismissed, with the substantial questions of law left open for consideration. In the present case, the High Court found no error in the Tribunal's order and accordingly dismissed the appeal.
The High Court decided not to adjudicate the substantial question of law framed for consideration due to subsequent developments. The court noted the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, and the assessee's filing of a declaration under Section 4 of the Act. Given that the assessee had availed the benefit of the Act, the court found no useful purpose in keeping the appeal pending. The Tax Case Appeal was disposed of on the ground that the assessee had filed a declaration. The court granted liberty to the assessee to restore the appeal if the ultimate decision on their declaration under the Vivad Se Vishwas Act was not in their favour. The substantial questions of law were left undecided. The operative direction was to dispose of the appeal with liberty to restore, and the Department was directed to process the application under the Act at the earliest.
The High Court noted that the assessee had filed a declaration under the Vivad Se Vishwas Scheme, 2020. Consequently, the Court directed the Competent Authority to process the declaration and pass appropriate orders expeditiously. The Tax Case Appeal was disposed of with liberty granted to the assessee to restore the appeal if the decision on their declaration under the Vivad Se Vishwas Act is not in their favour. In such an event, the Registry was directed to entertain the restoration petition without insisting on a condonation of delay application. The substantial questions of law were left open, and no costs were imposed. The judgment did not decide the merits of the substantial questions of law.
The High Court dismissed the appeal filed by the Revenue. It held that the ITAT was correct in confirming the order of the CIT(A) which restricted the disallowance under Section 14A read with Rule 8D to the extent of the exempt income earned by the assessee. The Court found no error in the ITAT's order and concluded that no substantial question of law arose for consideration. The reasoning was based on the legal position settled by the Delhi High Court in the case of Joint Investments Ltd. vs CIT [372 ITR 694(Del)]. The operative direction was the dismissal of the appeal. No issue was expressly left undecided.
The High Court dismissed the appeal filed by the Revenue on account of low tax effect, as per Circular No.17/2019 issued by the Central Board of Direct Taxes, which increased the monetary limit for filing appeals before the High Court to Rs.1 Crore. The Court noted that the tax effect in this case was below the threshold limit. Consequently, the substantial questions of law raised by the Revenue were left open. The Revenue was granted liberty to file a petition to restore the appeal if the tax effect was found to be above the threshold limit, allowing it to be heard and decided on merits.
The High Court allowed the appeal filed by the Revenue. It noted that an identical issue had been considered by a Division Bench of the same High Court in the case of CIT Vs. Manish D.Jain [HUF] [(2020) 122 Taxmann.com 180], which was decided in favour of the Revenue. Following this precedent, the High Court set aside the impugned order passed by the ITAT and answered the substantial questions of law in favour of the Revenue. The reasoning implicitly accepts the Revenue's argument that the ITAT had erred in remitting the matter back to the Assessing Officer and in shifting the burden of proof. The operative direction is to set aside the ITAT's order. No issue was expressly left undecided.
The High Court noted that the assessee had filed a declaration/undertaking under the Vivad Se Vishwas Scheme, and orders were passed on 31.12.2020 in Form No.3. In light of this subsequent event, the Court granted the assessee liberty to restore the appeal if the ultimate decision on the declaration filed under the Scheme was not in their favour. If such a prayer for restoration was made, the Registry was directed to entertain it without insisting on a condonation of delay application and place it before the appropriate Division Bench. Consequently, the substantial questions of law raised in the appeal were left open and not decided on merits. No costs were awarded.
The High Court dismissed the appeal filed by the Revenue on account of low tax effect, citing CBDT Circular No.17/2019. The Court noted that the Revenue's learned Senior Standing Counsel submitted that the appeal was not being pursued due to the tax effect being less than the increased monetary limit for appeals before the High Court. Consequently, the substantial questions of law framed by the Revenue were left open. The Court granted liberty to the Revenue to file a petition to restore the appeal if the tax effect was found to be above the threshold limit, allowing it to be heard and decided on merits. No costs were awarded.
The High Court allowed the appeal, setting aside the ITAT's order. The Court found that the ITAT's dismissal of the appeal on a technical ground, specifically an insignificant or inadvertent error in the assessee's initial, was hyper-technical and unsustainable. The Court referred to its own prior decision in M. Mukesh Kumar vs Income Tax Officer, T.C.A.No.2 of 2021, which dealt with a similar situation where an appeal was dismissed for a minor defect. The High Court held that such defects ought to be permitted to be rectified, especially when Rule 12 of the Income Tax (Appellate Tribunal) Rules, 1963, provides for such a procedure. The Court also noted that the defect memo and hearing notice were not returned to the assessee. The appeal was restored to the file of the ITAT to be heard and decided on merits. The substantial questions of law were left open. No costs were awarded.
The High Court disposed of the tax case appeal based on a subsequent event: the assessee having filed a declaration/undertaking under the Vivad Se Vishwas Scheme, 2020. The Court directed the Competent Authority to process the application under the Direct Tax Vivad Se Vishwas Act, 2020, and pass appropriate orders expeditiously. The assessee was granted liberty to restore the appeal if the decision on their declaration was not in their favour. If restoration was sought via a miscellaneous petition, the Registry was to place it before the appropriate Division Bench without insisting on a condonation of delay application. Consequently, the substantial questions of law framed by the assessee were left open and not decided on merits. No costs were awarded.
The High Court noted that the assessee had filed a declaration under the Vivad Se Vishwas Scheme, 2020. Consequently, the Court directed the Competent Authority to process the application under the Direct Tax Vivad Se Vishwas Act, 2020, and pass appropriate orders expeditiously. The assessee was granted liberty to restore the appeal if the decision on their declaration was not in their favour. In such an event, the Registry was directed to entertain the restoration petition without insisting on a condonation of delay application. The substantial questions of law were left open, and the tax case appeal was disposed of with the aforementioned liberty. No costs were awarded.
The High Court held that the appeals filed by the Revenue were not to be entertained and were accordingly dismissed. The Court followed its earlier decision in the case of The Commissioner of Income Tax vs A.A.Antony (TCA.No.432 of 2020 dated 18.12.2020). The reasoning was that the Circular issued by the CBDT (Circular No. 20/2016) was a one-time measure intended to prevent assessees from being denied their substantive right of appeal on technical grounds, particularly considering the procedural difficulties faced in 2016 when e-filing became mandatory. The Court found no error in the ITAT exercising its discretion in favour of the assessees. The Court noted that directing assessees to file fresh condonation petitions would be harsh and lead to further litigation. The substantial questions of law were left open for consideration but answered against the Revenue in the context of dismissing the appeals. The operative direction was the dismissal of the Revenue's appeals.
The High Court held that the Tribunal's exercise of power in granting interim orders was not in accordance with Section 254(2A) of the Act. The Court found that the directions issued by the Tribunal to the Departmental Representative not to initiate coercive action were beyond the Tribunal's jurisdiction and therefore non-est in law, as the Departmental Representative lacked the authority to agree to such directions without written approval from a competent authority. The Court concluded that the Tribunal has the power to grant an interim order under Section 254, subject to stipulated conditions, but not to issue such restraining directions. While answering the substantial questions of law in favour of the Revenue, the Court declined to interfere with the impugned order because the main appeal had already been heard by the Tribunal and orders were reserved, making the issue of interim protection academic. The Court noted that the appeal was expected to be disposed of shortly.