Facts of the Case

  • The Revenue (Commissioner of Income Tax – LTU) filed two appeals against SRF Limited.
  • There was a delay in re-filing the appeals, which was condoned by the Court.
  • At the hearing stage, counsel for the assessee submitted that the tax effect in both appeals was below the monetary limit prescribed by CBDT Circular No. 3/2018.

Issues Involved

  1. Whether the Revenue’s appeals are maintainable when the tax effect is below the monetary threshold prescribed by CBDT?
  2. Whether such appeals should be dismissed as not pressed in light of binding CBDT instructions?

Petitioner’s Arguments (Revenue)

  • The Revenue pursued the appeals under Section 260A challenging the order of the lower authorities.
  • No specific rebuttal to the applicability of the CBDT circular was recorded at this stage.

Respondent’s Arguments (Assessee – SRF Limited)

  • The assessee contended that the tax effect involved in both appeals was below the prescribed monetary limit under CBDT Notification No. 3/2018.
  • Therefore, the appeals were not maintainable and liable to be dismissed.

Court’s Findings / Order

  • The Court accepted the submission that the tax effect was below the prescribed monetary limit.
  • Accordingly, the appeals were treated as not pressed and disposed of.
  • The Court granted liberty to the Revenue to revive the appeals if it is later found that the tax effect exceeds the threshold.

Important Clarification by Court

  • Even after dismissal, the Revenue retains the right to file an appropriate application if it subsequently discovers that the case falls outside the monetary limit criteria.

Sections Involved

  • Section 260A of the Income Tax Act, 1961 (Appeal to High Court)
  • CBDT Circular / Notification No. 3/2018 dated 11 July 2018 (Monetary limits for filing appeals)

Link to download the order -

https://delhihighcourt.nic.in/app/case_number_pdf/2019:DHC:7401-DB/SMD05082019ITA12362018_160027.pdf

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