Facts of the Case

The Revenue (Principal Commissioner of Income Tax, Central-3) filed multiple appeals before the Delhi High Court against the respondent, Sanjeev Dhingra. During the hearing, counsel for the Revenue submitted that the tax effect involved in each of the appeals was below ₹50 lakhs.

As per the applicable CBDT Circular, such appeals fall below the prescribed monetary threshold for litigation.

Issues Involved

  1. Whether the appeals filed by the Revenue are maintainable when the tax effect is below ₹50 lakhs.
  2. Whether the Court should adjudicate the substantial question of law despite the low tax effect.

Petitioner’s Arguments (Revenue)

  • The Revenue acknowledged that the tax effect in each appeal is below ₹50 lakhs.
  • It was submitted that in view of CBDT Circular No. 3/2018, the appeals may be disposed of without adjudicating the legal issues.
  • The Revenue requested that the question of law be kept open for consideration in appropriate cases.

Respondent’s Arguments

  • The respondent did not appear (recorded as “Nemo”).

Court’s Findings / Order

  • The Court recorded the statement made by the Revenue regarding low tax effect.
  • Applying CBDT Circular No. 3/2018, the Court held that such appeals are not required to be entertained.
  • Accordingly, all appeals were disposed of without deciding the question of law, leaving the issue open for future cases.

Important Clarification

  • The dismissal of the appeals does not amount to adjudication on merits.
  • The substantial questions of law remain open and can be considered in cases where the tax effect exceeds the prescribed monetary limit.
  • This reinforces the binding nature of CBDT litigation policy on Revenue authorities.

Sections Provisions Involved

  • Income Tax Act, 1961 (Appeal provisions under Section 260A – implied)
  • 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:8333-DB/SKN29082018ITA9442018_102437.pdf

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