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2019 Supreme(SC) 2127
SUPREME COURT OF INDIA
Uday Umesh Lalit, Indu Malhotra, JJ.
Commissioner Of Income Tax-xiii,delhi - Appellant
Versus
M/s Mereena Creations - Respondent
Civil Appeal No.5068/2011
Decided On : 26-03-2019
Mr. Aman Lekhi, ASG, Ms. Shirin Khajuria, Adv. Ms. Shradha Deshmukh, Adv. Mr. B. V. Balaram Das, AOR, for the appellant; Mr. Kaushik Choudhury, AOR, for the Respondent
The central legal point established in the judgment is the application of the CBDT Instruction No.3 of 2018, which revised the monetary limits for filing appeals based on tax effect and directed that appeals with tax effect below a certain threshold should be withdrawn or not pressed.
Headnote:
CBDT Instruction - Income Tax Appeal - The court disposed of the appeal based on the CBDT Instruction No.3 of 2018, which revised the monetary limits for filing appeals and directed that appeals with tax effect below a certain threshold should be withdrawn or not pressed.
Fact of the Case:
The appellant filed an appeal against a judgment and order passed by the High Court of Delhi. The appellant cited the CBDT Instruction No.3 of 2018, which revised the monetary limits for filing appeals based on tax effect.
Finding of the Court:
The court disposed of the appeal, leaving all questions of law open, based on the Departmental Circular No.3 of 2018, which directed that appeals with tax effect below a certain threshold should be withdrawn or not pressed.
Issues: The main issue was whether the appeal should be dismissed based on the low tax effect as per the CBDT Instruction No.3 of 2018.
Ratio Decidendi: The court's decision was influenced by the CBDT Instruction No.3 of 2018, which set monetary limits for filing appeals based on tax effect and directed that appeals with tax effect below a certain threshold should be withdrawn or not pressed.
Final Decision: The appeal was disposed of, leaving all questions of law open, based on the CBDT Instruction No.3 of 2018.
ORDER
1. This appeal by special leave is filed against the judgment and order dated 30.10.2009 passed by the High Court of Delhi at New Delhi in Income Tax Appeal No.650 of 2006.
I.A. No. 150488 of 2018 has since then been filed by the appellant submitting inter alia:
8. With greatest respect & in the humble pleading, the CBDT Instruction No.3 of 2018 dated 11.07.2018 as amended by letter dated 20.08.2018 has been issued qua revision of monetary limits for filing of appeals and equally applicable retrospectively to the pending appeals filed, by the Department before Income Tax Appellate Tribunal, High Courts and SLP(s)/appeals before Hon'ble Supreme Court as measures for reducing litigation, which contains the substance that where the tax effect in the Departmental Appeal for an assessee is less than Rs. 1,00,00,000/- (1 Crore) before the Hon'ble Supreme Court, the same is to be withdrawn/not pressed, resultantly in the present case the total addition is of Rs. 28,88,993/- and the tax effect is Rs. 13,48,955/- (13.48 lakhs), both are sufficiently below the prescribed monetary limits and thus the case is squarely covered under the Departmental Circular No.3 of 2018 and liable to be dismissed only on the ground of low tax effect.
9. Because the case of the Respondent Assessee doesn't fall in any of the categories as mentioned in Para 10 of the Departmental Circular No.3 of 2018 and as such the present case is liable to be dismissed on the ground of low tax effect only."
2. Ms. Shirin Khajuria, learned advocate appearing for the appellant submitted that the Department in the aforesaid circumstances is not desirous of pressing this appeal. Her statement is recorded.
3. The Appeal stands disposed of, leaving all the questions of law open.
Pending applications, if any, also stand disposed of.
