Facts of the Case

The Revenue filed multiple appeals before the Delhi High Court against a consolidated order concerning Surya Buildwell Pvt. Ltd. The appeals were filed under Section 260A of the Income Tax Act.

During the hearing, it was acknowledged that although the appeals arose from a common order, the tax effect involved in each appeal was below ₹50,00,000, which is the monetary threshold prescribed under CBDT Circular No. 3/2018.

Additionally, there was a delay in filing and re-filing the appeals, which was condoned by the Court upon no objection from the assessee.

Issues Involved

  1. Whether the Revenue appeals are maintainable when the tax effect is below the monetary limit prescribed by CBDT Circular No. 3/2018.
  2. Whether the High Court should adjudicate the substantial questions of law despite low tax effect.

Petitioner’s Arguments (Revenue)

  • The appeals arise from a consolidated order and involve substantial questions of law.
  • However, the Revenue fairly submitted that the tax effect in each appeal is below ₹50 lakh, and therefore the appeals may be disposed of in terms of CBDT Circular No. 3/2018 without adjudication on merits.

Respondent’s Arguments (Assessee)

  • The assessee did not object to the condonation of delay.
  • Implicitly supported disposal of appeals in view of the CBDT Circular prescribing monetary limits.

Court 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 terms of CBDT Circular No. 3/2018.
  • The Court disposed of all appeals without examining the merits of the case.

Important Clarification by Court

  • The Court explicitly clarified that:
    • The question of law is left open.
    • The dismissal of appeals is not on merits, but only due to low tax effect.

Sections Involved

  • Section 260A of the Income Tax Act, 1961 (Appeal to High Court)
  • 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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