Facts of the Case

  • The Revenue (Commissioner of Income Tax) filed appeals against:
    • M/s Ram Dayal Associates Ltd (ITA 1404/2006)
    • Interlink Services Pvt. Ltd. (ITA 343/2007)
  • During the pendency of these appeals, CBDT issued Circular No. 3/2018, revising the monetary thresholds for filing/continuing appeals.
  • Applications were filed seeking disposal of appeals in terms of the said circular.

Issues Involved

  1. Whether the pending appeals filed by the Revenue are maintainable in view of CBDT Circular No. 3/2018.
  2. Whether such appeals are liable to be dismissed as not pressed due to low tax effect.

Petitioner’s Arguments (Revenue)

  • The Revenue relied upon CBDT Circular No. 3/2018, which prescribes revised monetary limits.
  • It was submitted that in view of the circular, the present appeals fall below the prescribed threshold.
  • Accordingly, the Revenue sought permission to withdraw/not press the appeals.

Respondent’s Arguments

  • The respondents were represented through counsel.
  • No specific opposition is recorded in the order, implying no objection to dismissal in terms of the CBDT circular.

Court’s Findings / Order

  • The Delhi High Court took note of:
    • CBDT Circular No. 3/2018 dated 11 July 2018
  • The Court held:
    • The applications are allowed.
    • The appeals are dismissed as not pressed in terms of the said circular.

 

Important Clarification

  • The dismissal is not on merits, but purely due to:
    • Low tax effect, as per CBDT policy.
  • Such dismissal:
    • Does not create a binding precedent on merits.
    • Leaves questions of law open for adjudication in appropriate cases.

    • Tax effect falls below prescribed limits.
    • Appeals are withdrawn/not pressed by the Revenue. 

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:8292-DB/SMD12112018ITA3432007_130017.pdf

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