COMMISSIONER OF INCOME TAX V vs. M/S NEW LIGHT APPARELS LTD.

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ITA/1097/2005HC DelhiDLHC01058945200503 February 2026Bench: HON'BLE MR. JUSTICE DINESH MEHTA,HON'BLE MR. JUSTICE VINOD KUMAR2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi dismissed the appeal filed by the revenue. The dismissal was based on the respondent-assessee's submission regarding the amount in dispute (Rs.24,28,827/-) and its relation to CBDT Circular No.5/2024 and Circular No. 9/2024. The Court did not delve into the substantive question of law framed at the time of admitting the appeal concerning the interpretation of Section 10B and the effect of the insertion of Sub-Section 3 by the Finance Act, 2000. The operative direction was the dismissal of the appeal. The Court noted that the appellant-department is free to move for revival of the appeal in case it falls within the exceptions mentioned in the circulars.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Appellant) against M/s New Light Apparels Ltd. (Respondent) for the assessment year(s) not specified. The High Court of Delhi admitted the appeal on 29.03.2006. The dispute pertains to the tax concession under Section 10-B of the Income Tax Act, 1961, specifically concerning the insertion of Sub-Section 3 of Section 10B by the Finance Act, 2000. The amount in dispute is stated to be Rs.24,28,827/-. The procedural history involves the framing of a specific question of law for admission of the appeal.

What were the issues?

1. Whether the insertion of Sub-Section 3 of Section 10B of the Income Tax Act by Finance Act, 2000 is clarificatory, making the receipt of foreign exchange from a 100% Export Oriented Unit a condition precedent for the grant of tax concession under Section 10-B of the Income Tax Act, 1961? (Question of law). Assessee's contention: The respondent-assessee argued that the appeal should be dismissed in light of CBDT Circular No.5/2024 dated 15.03.2024 read with Circular No. 9/2024 dated 17.09.2024, as the addition on this count was only Rs.24,28,827/-. Revenue's contention: The judgment does not record specific arguments from the appellant-revenue regarding the substantive issue of Section 10B. Their participation is implied by filing the appeal.

Which sections of the Income-tax Act were involved?

Section 10B

AI-generated summary — verify with the full judgment below

$~69 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1097/2005

COMMISSIONER OF INCOME TAX V

.....Appellant Through: Mr. Vipul Agrawal, SSC with Ms. Harshita Kotru, Adv.

versus

M/S NEW LIGHT APPARELS LTD.

.....Respondent

Through: Mr. Nischay Kantoor, Adv.

CORAM:

HON'BLE MR. JUSTICE DINESH MEHTA

HON'BLE MR. JUSTICE VINOD KUMAR

O R D E R %

03.02.2026 1. While admitting the appeal on 29.03.2006. The following question was framed: “Whether the insertion of Sub-Section 3 of Section 10B of the Income Tax Act by Finance Act, 2000 is clarifactory making receipt of foreign exchange from 100% Export Oriented Unit a condition precedent for grant of tax concession under Section 10-B of the Income Tax Act, 1961?”

2.

Learned counsel for the respondent at the outset submitted that the addition on this count is only Rs.24,28,827/- and therefore the appeal deserves to be dismissed in light of CBDT Circular No.5/2024 dated 15.03.2024 read with Circular No. 9/2024 dated 17.09.2024. 3. In view of the aforesaid, the appeal is dismissed. 4. Needless to observe that the appellant-department shall be free to move This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 05/02/2026 at 12:16:47

application for revival of the appeal, in case it falls in the exceptions.

DINESH MEHTA, J.

VINOD KUMAR, J. FEBRUARY 3, 2026/sr

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 05/02/2026 at 12:16:47

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