Facts of the Case

The Revenue filed multiple appeals before the Delhi High Court, including ITA No. 43/2010, ITA No. 47/2010, and ITA No. 1499/2010, against the respondents (Suresh Mittal and Karan Sawhney).

At the time of hearing, it was brought to the Court’s attention that the tax effect involved in these appeals was below the threshold prescribed under the CBDT Circular dated 11.07.2018.

Issues Involved

  1. Whether the Revenue can pursue appeals where the tax effect is below the prescribed monetary limit?
  2. Whether such appeals are maintainable in light of CBDT instructions?

Petitioner’s Arguments (Revenue)

  • The Revenue initially filed appeals challenging the orders of lower authorities.
  • However, during the hearing, the Revenue acknowledged that the tax effect in the present appeals was below the monetary limit prescribed by the CBDT circular.
  • Consequently, it was submitted that the appeals could not be pressed.

Respondent’s Arguments

  • Though not elaborately recorded in the order, the respondents benefited from the application of the CBDT circular restricting low tax effect appeals.

Court Order / Findings

  • The Court recorded that the tax effect in all the appeals was below the prescribed limit.
  • It accepted the submission of the Revenue that the appeals could not be pressed.
  • Accordingly, the Court dismissed all appeals as not pressed.
  • The previously scheduled hearing date (25.07.2019) was cancelled.

Important Clarification

  • The judgment reinforces that CBDT monetary limit circulars are binding on the Revenue, and appeals below the prescribed threshold should not be pursued.
  • The dismissal was not on merits but purely due to low tax effect.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2019:DHC:7387-DB/SRB29032019ITA432010_145713.pdf 

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