COMMISSIONER OF INCOME TAX DEL vs. M/S MOKUL OVERSEAS LTD.
What did the High Court hold?
The High Court held that in view of the submission made by the learned Sr. Standing Counsel for the Commissioner of Income Tax regarding the tax effect being below the limits prescribed in the relevant CBDT Circulars, the appeal is dismissed. The reasoning is based on the administrative instructions issued by the CBDT, which set monetary limits for filing appeals. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, are to be withdrawn or dismissed. The operative direction is the dismissal of the appeal. No issue was expressly left undecided.
What were the facts?
The appeal was filed by the Commissioner of Income Tax (Appellant) against M/s Mokul Overseas Ltd. (Respondent). The assessment year(s) are not specified. The order or action under challenge is the appeal itself, which was before the Delhi High Court. The procedural history is that the appeal was listed for hearing. The tax effect involved in the appeal was stated to be below the limits prescribed by CBDT Circular No.5/2024 dated 15.03.2024 read with Circular No. 9/2024 dated 17.09.2024.
What were the issues?
1. Whether the appeal filed by the Revenue is maintainable in light of the tax effect being below the prescribed limits under CBDT Circulars. The Revenue, through its learned Sr. Standing Counsel, argued that the tax effect in the instant appeal falls below the limits prescribed in CBDT Circular No.5/2024 dated 15.03.2024 read with Circular No. 9/2024 dated 17.09.2024. The Respondent was not represented, and therefore, no arguments were recorded on their behalf.
AI-generated summary — verify with the full judgment below
$~3 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1173/2005
COMMISSIONER OF INCOME TAX DEL .....Appellant Through: Mr. Ruchir Bhatia, Sr. Standing Counsel.
versus
M/S MOKUL OVERSEAS LTD.
.....Respondent
Through: None.
CORAM:
HON'BLE MR. JUSTICE DINESH MEHTA
HON'BLE MR. JUSTICE VINOD KUMAR
O R D E R %
17.01.2026 1. Mr. Ruchir Bhatia, learned Sr. Standing Counsel for the Commissioner of Income Tax submitted that the tax effect involves in the instant appeal falls below the limits prescribed in CBDT Circular No.5/2024 dated 15.03.2024 read with Circular No. 9/2024 dated 17.09.2024. 2. In view of the aforesaid, the appeal is dismissed.
DINESH MEHTA, J.
VINOD KUMAR, J. JANUARY 17, 2026/MR
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 19/01/2026 at 12:29:33
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