Facts of the Case

  • The Revenue filed appeals against the respondent assessee, M/s S3H Builders Pvt. Ltd.
  • The appeals pertained to issues arising under the Income Tax Act.
  • At the time of hearing, it was submitted by the Revenue that the tax effect in both appeals was below ₹50 lakhs.
  • The matter was therefore governed by CBDT Circular No. 3/2018.

Issues Involved

  1. Whether the appeals filed by the Revenue are maintainable in view of the monetary limits prescribed under CBDT Circular No. 3/2018.
  2. Whether the Court should adjudicate the substantial question of law despite low tax effect.

Petitioner’s (Revenue’s) Arguments

  • The Revenue acknowledged that the tax effect involved in the appeals was below ₹50 lakhs.
  • It was submitted that in terms of CBDT Circular No. 3/2018, the appeals may be disposed of without examination of the issues on merits.

Respondent’s Arguments

  • The respondent did not oppose the delay in filing.
  • No substantive opposition was recorded regarding disposal under the CBDT Circular.

Court’s Findings / Order

  • The Court recorded the statement of the Revenue regarding low tax effect.
  • Applying CBDT Circular No. 3/2018, the Court disposed of the appeals without examining the merits of the case.
  • The questions of law were left open for determination in appropriate cases.

Important Clarification by the Court

  • The Court clarified that if the case falls within any exception to the CBDT Circular, the Revenue would be at liberty to seek revival of the appeals.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:8319-DB/SKN15102018ITA6952018_153936.pdf

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