Facts of the Case

The present matter involves three appeals filed by the Revenue before the Delhi High Court under Section 260A of the Income Tax Act, 1961. Two appeals were filed against Suresh Mittal and one against Karan Sawhney.

At the outset of the hearing, it was brought to the notice of the Court that the tax effect involved in all the appeals was below the monetary threshold prescribed under the prevailing CBDT Circular dated 11.07.2018.

Issues Involved

  1. Whether the Revenue can pursue appeals before the High Court when the tax effect is below the prescribed monetary limit under CBDT Circulars.
  2. Whether such appeals are maintainable despite statutory provisions under Section 260A of the Income Tax Act.

Petitioner’s Arguments (Revenue)

  • The Revenue initially filed the appeals challenging orders passed in favour of the assessees.
  • However, during the hearing, the Revenue fairly conceded that the tax effect involved in the appeals was below the limit prescribed under CBDT Circular dated 11.07.2018.
  • It was submitted that in view of the binding circular, the Revenue would not press the appeals.

Respondent’s Arguments (Assessee)

  • The assessees relied on the CBDT Circular prescribing monetary limits, contending that the appeals were not maintainable.
  • It was implied that continuation of such appeals would be contrary to administrative instructions binding on the Revenue authorities.

Court Findings / Order

  • The Delhi High Court recorded that the tax effect in the present appeals was below the threshold prescribed by the CBDT Circular dated 11.07.2018.
  • The Court noted the submission made by the Revenue that it would not press the appeals.
  • Accordingly, all the appeals were dismissed as not pressed.
  • The previously scheduled next date of hearing (25.07.2019) was cancelled.

Important Clarification

  • The dismissal of the appeals was not on merits but solely on account of low tax effect.
  • Such dismissal does not constitute a precedent on substantive legal issues involved in the case.
  • The decision reinforces the binding nature of CBDT Circulars on the Revenue authorities regarding litigation management.

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

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.