PR. COMMISSIONER OF INCOME TAX-6 vs. NALWA STEEL & POWER LTD

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ITA/208/2019HC DelhiDLHC01001690201819 December 2024Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE DHARMESH SHARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal could not be continued as the tax effect in dispute fell below INR 2 Crores. This was in accordance with the provisions of Circular No. 9/2024 dated 17 September 2024. The Court explicitly stated that the appeal is dismissed on the ground of low tax effect. The reasoning is a direct application of the circular. The ratio decidendi is that appeals with a tax effect below the threshold specified in the relevant circulars are to be dismissed on that ground. The operative direction was to dismiss the appeal. The proposed questions of law were expressly left open to be urged in an appropriate case.

What were the facts?

This is an appeal filed by the Principal Commissioner of Income Tax-6 (Revenue) against Nalwa Steel & Power Ltd (Assessee). The appeal concerns the assessment year(s) which are not specified in the judgment. The order or action under challenge is the appeal itself, which the Revenue sought to continue. The procedural history is that the appeal was filed and came before the Delhi High Court. The key material fact is that the tax effect in dispute falls below INR 2 Crores.

What were the issues?

1. Whether the appeal can be continued in light of the provisions of Circular No. 9/2024 dated 17 September 2024, given that the tax effect is below INR 2 Crores? (Question of law) Assessee's contentions: The Assessee did not explicitly argue any points as the appeal was dismissed on a preliminary ground. The judgment does not record any specific arguments made by the Assessee. Revenue's contentions: The Revenue did not explicitly argue any points as the appeal was dismissed on a preliminary ground. The judgment does not record any specific arguments made by the Revenue.

AI-generated summary — verify with the full judgment below

$~80 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 208/2019

PR. COMMISSIONER OF INCOME TAX-6 .....Appellant Through: Mr. Sunil Agarwal, Sr. Standing Counsel

versus

NALWA STEEL & POWER LTD

.....Respondent Through: Mr. Salil Kapoor, Mr. Sumil- Lal Chandani and Ms. Ananya Kapoor, 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 00:33:19

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