DIRECTOR OF INCOME TAX vs. ROLLS ROYCE SINGAPORE PVT LTD

PDF · subscribers
ITA/257/2011HC DelhiDLHC01145681201009 January 2025Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi held that the tax effect in this appeal falls below INR 2 Crores. Consequently, in light of Circular No. 9/2024 dated 17 September 2024, the appeal is not liable to be continued. The Court dismissed the appeal on the ground of low tax effect. The proposed questions of law were expressly kept open to be urged and addressed in an appropriate future case. No decision was made on the merits of the substantive issues.

What were the facts?

This is an appeal filed by the Director of Income Tax against Rolls Royce Singapore Pvt Ltd. The appeal concerns a tax effect that falls below INR 2 Crores. The present order is a consequence of Circular No. 9/2024 dated 17 September 2024, which provides for the non-continuation of appeals with a tax effect below a certain threshold. The appeal was filed before the High Court of Delhi.

What were the issues?

1. Whether the appeal should be dismissed on the ground of low tax effect, in light of Circular No. 9/2024? Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The revenue, being the appellant, would have argued for the appeal to be heard on merits if the circular did not apply or if there were exceptional circumstances. However, the judgment indicates the appeal is dismissed due to the circular.

AI-generated summary — verify with the full judgment below

$~60 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 257/2011

DIRECTOR OF INCOME TAX

.....Appellant

Through: Appearance not given

versus

ROLLS ROYCE SINGAPORE PVT LTD .....Respondent

Through: Appearance not given

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

O R D E R %

09.01.2025

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.

HARISH VAIDYANATHAN SHANKAR, J. JANUARY 9, 2025/v

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 24/01/2025 at 12:39:00

Recent GST High Court judgments

Search GST case law →