Facts of the Case

As per the order dated 17.08.2018 (page 1), the Revenue filed multiple appeals before the Delhi High Court against the respondent assessee. During the hearing, the counsel for the Revenue submitted that the tax effect involved in the appeals was below ₹50,00,000, which is the prescribed monetary limit under CBDT Circular No. 3/2018.

Issues Involved

  1. Whether the Revenue’s appeals are maintainable when the tax effect is below the prescribed monetary limit under CBDT Circular No. 3/2018.
  2. Whether the High 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 the appeals is below ₹50 lakhs.
  • It relied on CBDT Circular No. 3/2018, which restricts filing or pursuing appeals below the prescribed monetary threshold.
  • Requested that the appeals be disposed of without adjudicating the substantial question of law, leaving the question open.

Respondent’s Arguments (Assessee)

  • No specific arguments recorded in the order.
  • The respondent effectively benefited from the Revenue’s submission regarding low tax effect.

Court’s Findings / Order

  • The Court recorded the statement made by the Revenue regarding the applicability of the CBDT circular.
  • It held that, in view of the low tax effect, the appeals need not be entertained.
  • The appeals were disposed of without answering the substantial question of law, which was left open for future adjudication.

Important Clarification

  • The Court did not decide the merits of the case or the legal issue involved.
  • The dismissal is purely procedural, based on the monetary limit policy of the CBDT.
  • The substantial question of law remains open, meaning it can be decided in a future case where the tax effect exceeds the threshold.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:8321-DB/SKN17082018ITA7562018_154540.pdf

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