Facts of the Case

The Revenue filed two appeals before the Delhi High Court against the respondent assessee, M/s Business India Television International Ltd. However, during the hearing, counsel for the Revenue submitted that the total tax effect involved in both appeals was less than ₹50 lakhs.

In light of this, reliance was placed on CBDT Circular No. 3/2018, which prescribes monetary thresholds below which appeals should not be pursued.

Issues Involved

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

Petitioner’s Arguments (Revenue)

  • The Revenue acknowledged that the tax effect in the present appeals was below ₹50 lakhs.
  • It was submitted that in view of CBDT Circular No. 3/2018, the substantial question of law need not be examined.

Respondent’s Arguments (Assessee)

  • No detailed arguments of the respondent are recorded in the order.
  • The matter was disposed of primarily based on the Revenue’s submission regarding low tax effect.

Court’s Findings / Order

  • The Delhi High Court accepted the submission of the Revenue.
  • It held that in view of the CBDT Circular No. 3/2018, the appeals need not be examined on merits.
  • Accordingly, the appeals were disposed of without answering the substantial question of law, which was left open.
  • The Court also clarified that no notice would be issued in the application for condonation of delay due to disposal of appeals.

Important Clarification

  • The dismissal of the appeals was not on merits, but solely due to low tax effect.
  • The substantial question of law remains open, meaning it can be raised in appropriate future cases where the monetary threshold is satisfied.
  • This judgment reinforces the binding nature of CBDT circulars on litigation policy.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:8329-DB/SKN30072018ITA7992018_161713.pdf

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