Case Law Details

Case Name : Commissioner of income-tax Vs. Delhi Race Club Ltd (Delhi High Court)
Appeal Number : ITA No. 128/2008
Date of Judgement/Order : 03/03/2011
Related Assessment Year :

CIT Vs. Delhi Race Club Ltd

The tax effect involved in the present appeal is Rs. 4,65,860/-. As per the recent guidelines of the CBDT, appeal in those cases where the tax effect is less than Rs. 10 lacs, are not to be entertained. In this case court has taken the view that such circular would also apply to pending cases.  A contrary view has been taken in CIT vs. M/s Varindera Construction Co (P&H High Court – Full Bench).

___________________________________________

IN THE HIGH COURT OF DELHI AT NEW DELHI

ITA No. 128/2008

03.03.2011

Commissioner of income-tax Vs. Delhi Race Club Ltd

The tax effect involved in the present appeal is Rs. 4,65,860/-. As per the recent guidelines of the CBDT, appeal in those cases where the tax effect is less than Rs. 10 lacs, are not to be entertained.

This Court in the case of Commissioner of Income Tax Delhi-III v. M/s P.S. Jain and Co. being ITA No. 179/1991 (Given Below)  decided on 2nd August, 2010 has taken a view that such circular would also apply to pending cases.

In view thereof, this appeal is also dismissed on the same ground. A.K. SIKRI, J.

M.L. MEHTA, J.

MARCH 03, 2011

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IN THE HIGH COURT OF DELHI AT NEW DELHI

ITR 179/1991

Commissioner of Income Tax Delhi-Iii versus M/S. P.S. Jain And Co.

O R D E R

02.08.2010

This is a reference under Section 256(2) of the Income Tax Act, 1961. Heard Mr. Sanjeev Sabharwal, learned counsel for appellant and Mr. B.N. Goswami, learned counsel for respondent.

It is fairly stated by Mr. Sanjeev Sabharwal, learned counsel for appellant that the tax impact would be Rs.1,80,000/-.

In Commissioner of Income Tax Vs. Ashok Kumar Manibhai Patel and Co. (2009) 317 ITR 386 (MP), a Division Bench of Madhya Pradesh has held as thus:-

“13. Quite apart from the above, we may also note that this Court in the case of CWT v. Dr. Ajad Kumar Jain (HUF), Sagar (W.P. No. 162/98), while taking note of the tax impact and placing reliance on the decision rendered in CIT v. Pithwa Engineering Works (2005) 276 ITR 519 (Bom), has opined thus:

“11. The factual scenario can be perceived from another aspect. Submission of Mr. A.K. Shrivastava, learned Counsel for the respondent is that the tax impact is Rs. 52,565/-and, therefore, as per the circular of the Central Board of Direct Taxes the reference need not be adverted to. A Division Bench of the High Court of Bombay in the case of CIT v. Pithwa Engg. Works [2005] 276 ITR 519 (Bom), in paragraph 6 expressed the view as under (page 520):

“This Court can very well take judicial notice of the fact that by passage of time money value has gone down, the cost of litigation expenses has gone up, the assesses on the file of the Departments have been increased consequently, the burden on the Department has also increased to a tremendous extent. The corridors of the superior courts are chocked with huge pendency of cases. In this view of the matte, the Board has rightly taken a decision not to file references if the tax effect less than Rs. 2 lakhs. The same policy for old matters need to be adopted by the Department. In our view, the Board’s circular dated March 27, 2000 is very much applicable even to the old references which are still undecided. The Department is not justified in proceeding with the old references wherein the tax impact is minimal. Thus, there is no justification to proceed with decades old references having negligible tax effect.

3. Judged from both angles we would answer the reference in the negative in favour of the assessee and against the Revenue.”

Keeping in view the aforesaid principle, we are not inclined to answer the present reference and accordingly the same is dismissed.

CHIEF JUSTICE MANMOHAN, J

AUGUST 02, 2010

NF

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