Facts of the Case

The present matter consists of multiple appeals (ITA Nos. 985, 988, 989, 990, 991, and 992 of 2018) filed by the Revenue against Surya Buildwell Pvt. Ltd. before the Delhi High Court.

These appeals arose from a consolidated order passed in relation to the assessee. However, during the hearing, it was acknowledged that the tax effect involved in each individual appeal was below ₹50,00,000.

Additionally, there was a delay in filing and re-filing of the appeals, which was condoned by the Court upon consent of the assessee.

Issues Involved

  1. Whether the Revenue’s appeals are maintainable when the tax effect is below the prescribed monetary threshold under CBDT Circular No. 3/2018.
  2. Whether the Court should adjudicate on the substantial question of law despite low tax effect.

Petitioner’s (Revenue) Arguments

  • The Revenue submitted that the appeals arise from a common consolidated order.
  • However, it fairly conceded that each appeal individually falls below the ₹50 lakh threshold prescribed under CBDT Circular No. 3/2018.
  • Based on the circular, it requested disposal of the appeals without adjudication on merits, leaving the legal issue open.

Respondent’s (Assessee) Arguments

  • The assessee did not object to the condonation of delay in filing the appeals.
  • Implicitly supported disposal in terms of the applicable CBDT circular 

Court’s Findings / Order

  • The Delhi High Court accepted the submission of the Revenue.
  • It held that since the tax effect in each appeal is below ₹50,00,000, the appeals are liable to be disposed of in view of CBDT Circular No. 3/2018.
  • The Court disposed of all appeals without examining the merits of the issues raised.

Important Clarification by the Court

  • The Court expressly clarified that:
    • The question of law is left open
    • No adjudication has been made on merits
    • The disposal shall not be treated as a precedent on the substantive issue

This ensures that similar issues can be raised in future cases where the tax effect exceeds the prescribed limit.

Sections  involved

Income Tax Act, 1961 (Appeals provisions)

  • CBDT Circular No. 3/2018 dated 11.07.2018 (Monetary limits for filing appeals)

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:8335-DB/SKN10092018ITA9882018_103438.pdf

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