Facts of the Case

The Revenue filed multiple appeals before the Delhi High Court against the respondent assessee, Sanjeev Dhingra. During the hearing, counsel for the Revenue submitted that the tax effect involved in each appeal was below ₹50 lakhs. As per CBDT Circular No. 3/2018 dated 11 July 2018, appeals below the prescribed monetary threshold are not to be pursued.

Issues Involved

  • Whether the High Court should adjudicate appeals where the tax effect is below the prescribed monetary limit under CBDT Circular No. 3/2018.
  • Whether questions of law raised in such appeals should still be decided or kept open.

Petitioner’s Arguments (Revenue)

  • The Revenue acknowledged that the tax effect in each appeal was below ₹50 lakhs.
  • It was submitted that, in view of CBDT Circular No. 3/2018, the appeals may be disposed of without adjudicating the questions of law, leaving them open for future consideration.

Respondent’s Arguments

  • None appeared on behalf of the respondent (as recorded: Through Nemo).

Court Order / Findings

  • The Court recorded the statement made by the Revenue regarding low tax effect.
  • It held that in light of CBDT Circular No. 3/2018, the appeals are not required to be adjudicated on merits.
  • Accordingly, the Court disposed of the appeals without deciding the questions of law, explicitly stating that the issues are kept open for future cases.

Important Clarification

  • The dismissal of the appeals does not amount to affirmation of the lower authority’s decision on merits.
  • The questions of law remain open, meaning they can be adjudicated in future cases where the tax effect exceeds the prescribed limit.

Sections Involved

  • Section 260A of the Income Tax Act, 1961 (Appeals to High Court)
  • CBDT Circular governing 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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