THE COMMISSIONER OF INCOME TAX -LTU vs. MAWANA SUGAR LIMITED

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ITA/1386/2018HC DelhiDLHC01377538201819 December 2024Bench: HON'BLE MR. JUSTICE DHARMESH SHARMA,HON'BLE MR. JUSTICE YASHWANT VARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal is not liable to be continued due to the tax effect falling below INR 2 Crores, as per the provisions of Circular No. 9/2024 dated 17 September 2024. Consequently, the appeal was dismissed on the ground of low tax effect. The Court explicitly stated that the proposed questions of law are kept open to be urged and addressed in an appropriate case. No decision was made on the merits of the substantive issues of the appeal. The operative direction was the dismissal of the appeal.

What were the facts?

This appeal was filed by the Commissioner of Income Tax – LTU against Mawana Sugar Limited. The subject matter of the appeal concerns a tax effect that falls below INR 2 Crores. The appeal was filed before the High Court of Delhi. The procedural history leading to this order indicates that the appeal was presented for hearing and decision. The judgment does not specify the assessment year(s) or the specific order or action under challenge, nor does it mention the authority that passed the original order or the amount in dispute beyond the tax effect threshold.

What were the issues?

1. Whether the appeal, having a tax effect below INR 2 Crores, is maintainable in light of Circular No. 9/2024 dated 17 September 2024? (Question of law) The Revenue contended that the appeal should be dismissed due to the low tax effect, citing Circular No. 9/2024. The Assessee's contentions are not recorded in the judgment. The judgment does not explicitly state the specific grounds or issues that were originally raised by the Revenue in the appeal, other than the overarching concern about the tax effect.

Which sections of the Income-tax Act were involved?

None

AI-generated summary — verify with the full judgment below

$~77 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1386/2018

THE COMMISSIONER OF INCOME TAX –LTU .....Appellant Through: Mr. Siddhartha Sinha, Sr. Standing Counsel

versus

MAWANA SUGAR LIMITED

.....Respondent Through: Mr. Mauank Nagi and Mr. Tarun Singh, Advs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE DHARMESH SHARMA

O R D E R %

19.12.2024

1.

Undisputedly, the tax effect which forms the subject matter of this appeal falls below INR 2 Crores and would thus not be liable to be continued in light of the provisions made in Circular No. 9/2024 dated 17 September 2024. 2. The appeal is, consequently, dismissed on the ground of low tax effect. The proposed questions of law are kept open to be urged and addressed in an appropriate case.

YASHWANT VARMA, J.

DHARMESH SHARMA, J. DECEMBER 19, 2024 sp

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 00:32:05

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