COMMISSIONER OF INCOME TAX vs. OVERCARE TRADING P.LTD.

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ITA/1217/2008HC DelhiDLHC01100997200810 December 2024Bench: HON'BLE MR. JUSTICE TUSHAR RAO GEDELA,HON'BLE THE ACTING CHIEF JUSTICE1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi dismissed the present appeal filed by the Revenue. The Court noted the submission made by the learned counsel for the Revenue that the tax effect involved in the appeal was below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. Furthermore, the Revenue confirmed that the appeal was not covered by any of the exceptions mentioned in the circular. Based on these submissions, the Court found no reason to proceed with the appeal on merits and accordingly dismissed it. The ratio decidendi is that appeals with a tax effect below the stipulated threshold, and not falling under any exceptions, are to be dismissed in accordance with the CBDT circulars. No specific issue from the ITAT's order was decided on merits.

What were the facts?

The Revenue (Commissioner of Income Tax) filed an appeal before the High Court of Delhi against an order dated 20.12.2007 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.IT(SS)A No.157/Del/2005. This order pertained to the block period from 01.04.1990 to 14.02.2001. The assessee is Overcare Trading P.Ltd. The appeal was filed by the Revenue. The specific amount in dispute was not explicitly stated, but the procedural history indicates that the ITAT had passed an order which the Revenue sought to challenge.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect involved. The Revenue, through its counsel, stated that the tax effect in the present appeal is below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. The Revenue further contended that the case is not covered by any exceptions set out in the said circular. Therefore, the primary issue before the High Court was whether to dismiss the appeal based on the low tax effect as per the circular. The assessee's contentions were not recorded in the judgment.

AI-generated summary — verify with the full judgment below

$~R-49 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1217/2008

COMMISSIONER OF INCOME TAX

.....Appellant Through: Mr Puneet Rai, SSC, Mr Ashvini Kumar and Mr Rishabh Nangia, SCs and Mr Nikhil Jain, Advocate. Versus

OVERCARE TRADING P.LTD.

.....Respondent

Through:

CORAM:

HON'BLE THE ACTING CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

10.12.2024

1.

The Revenue has filed the present appeal impugning the order dated 20.12.2007 passed by the learned Income Tax Appellate Tribunal in ITA No.IT(SS)A No.157/Del/2005 for the block period 01.04.1990 to 14.02.2001. 2. At the outset, the learned counsel appearing for the Revenue states that the tax effect involved in the present appeal is below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024 and is not covered by any exceptions as set out in the circular. 3. Accordingly, the present appeal is dismissed on account of low tax effect.

ACTING CHIEF JUSTICE

TUSHAR RAO GEDELA, J DECEMBER 10, 2024 M

Click here to check corrigendum, if any 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 03/07/2025 at 00:36:44

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