COMMISISONER OF INCOME TAX DEL vs. M/S DALMIA CEMENT BHARAT LTD.

Facts

The appeals were filed by the Commissioner of Income Tax (Appellant) against M/s Dalmia Cement Bharat Ltd. (Respondent). The appeals challenged orders passed by the Income Tax Appellate Tribunal (ITAT). The tax effect in these appeals was stated to be less than Rs. 2 crores. The appeals were listed before the Delhi High Court for hearing. The procedural history indicates that these are multiple appeals (ITA 155/2006, ITA 258/2006, ITA 549/2006, ITA 921/2006) filed in the year 2006.

Held

The Delhi High Court held that the appeals are disposed of as withdrawn. The Court granted the permission sought by the Appellant (Revenue) to withdraw the appeals. This decision was based on the Appellant's submission regarding the tax effect being less than Rs. 2 crores and in accordance with Circular No. 09/2024. The reasoning is that the Revenue is exercising its discretion to withdraw appeals that fall below a certain monetary threshold as per the prevailing circular. The ratio decidendi is that appeals with a tax effect below the threshold specified in the relevant circular can be withdrawn by the Revenue. The operative direction is that the appeals are disposed of as withdrawn, and any pending applications are also disposed of as withdrawn. No issue was expressly left undecided.

Key Issues

1. Whether the appeals filed by the Revenue should be permitted to be withdrawn in light of the Circular No. 09/2024, given that the tax effect is less than Rs. 2 crores? Assessee's Contention: The judgment does not record any specific contentions from the assessee regarding the merits of the case. The assessee was represented by counsel. Revenue's Contention: The Revenue, through its counsel, fairly submitted that the tax effect in the present appeals is less than Rs. 2 crores. Based on this, the Revenue sought permission to withdraw the present appeals in light of Circular No. 09/2024.