PR. COMMISSIONER OF INCOME TAX-4, NEW DELHI vs. ANITA RANI

Facts

The Appellant, Pr. Commissioner of Income Tax-4, New Delhi, filed an appeal under Section 260A of the Income Tax Act, 1961, challenging an order dated 21.05.2025 passed by the Income Tax Appellate Tribunal, Delhi Branch. The appeal was filed with a delay of 13 days in filing and a further delay of 306 days in re-filing, both of which were condoned by the High Court. The tax effect in the appeal was stated to be less than Rs. 2 crores.

Held

The High Court noted that the tax effect in the present appeal was less than Rs. 2 crores. Citing Circular No. 09/2024, the Court expressed its inclination not to entertain appeals with such a low tax effect. Consequently, the learned counsel for the Appellant sought permission to withdraw the appeal. The High Court allowed this request and disposed of the appeal as withdrawn. No decision was made on the merits of the appeal or the underlying ITAT order. Any pending applications were also disposed of.

Key Issues

1. Whether the High Court should entertain an appeal under Section 260A of the Income Tax Act, 1961, when the tax effect is less than Rs. 2 crores, in light of Circular No. 09/2024. Assessee's Contention: The judgment records no specific contention from the assessee (Anita Rani) regarding the issues to be decided. The appeal was withdrawn by the appellant. Revenue's Contention: The revenue (Pr. Commissioner of Income Tax-4, New Delhi) sought to challenge the ITAT order. However, due to the low tax effect and the prevailing circular, the revenue's counsel sought permission to withdraw the appeal.