PRINCIPAL COMMISIONER OF INCOME TAX -7, DELHI vs. UJJAWALA POWER PVT. LTD.

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ITA/3/2026HC DelhiDLHC01108545202306 January 2026Bench: HON'BLE MR. JUSTICE VINOD KUMAR,HON'BLE MR. JUSTICE DINESH MEHTA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi dismissed the appeal filed by the Principal Commissioner of Income Tax-7, Delhi. The Court's decision was based on the submission made by the Revenue's counsel that the tax effect in the present appeal was below the monetary limit stipulated in Circular No. 5&9/2024, issued by the CBDT. The circular provides guidelines for the institution of appeals by the Income Tax Department, and appeals falling below the specified tax effect are generally not to be pursued. The Court found this submission to be determinative of the appeal's fate. No specific finding on the merits of the original assessment or the order under challenge was made, as the dismissal was purely on procedural grounds related to the tax effect and the CBDT circular. The operative direction was the dismissal of the appeal.

What were the facts?

The appellant, Principal Commissioner of Income Tax-7, Delhi, filed an appeal before the High Court of Delhi against an order concerning Ujjawala Power Pvt. Ltd. The appeal was filed for assessment year(s) not specified in the judgment. The procedural history leading to this appeal is not detailed. The present hearing concerns the appeal itself, with the appellant's counsel appearing and the respondent's appearance not being noted.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect is below the prescribed limit? The Revenue, through its counsel Mr. Puneet Rai, argued that the tax effect in the present appeal is below the limit prescribed in Circular No. 5&9/2024, issued by the Central Board of Direct Taxes (CBDT). The Revenue contended that this circular mandates the dismissal of appeals with a tax effect below the specified threshold. The judgment does not record any arguments from the respondent.

AI-generated summary — verify with the full judgment below

$~24 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 3/2026, CM APPL. 434/2026, CM APPL. 435/2026 & CM APPL. 436/2026 PRINCIPAL COMMISIONER OF INCOME TAX -7, DELHI .....Appellant Through: Mr. Puneet Rai, SSC, Mr. Gibran, JSC and Mr. Ashvini Kumar and Mr. Rishabh Nangia, Advs. versus UJJAWALA POWER PVT. LTD.

.....Respondent Through: Appearance not given CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR O R D E R %

06.01.2026 1. Mr. Puneet Rai, learned Senior Standing Counsel appearing for the appellant submitted that in the present appeal, the tax effect is below the limit prescribed in circular no.5&9/2024, issued by the Central Board of Direct Taxes (CBDT). 2. The instant appeal is therefore dismissed in light of the above referred circulars. DINESH MEHTA, J VINOD KUMAR, J JANUARY 6, 2026/cd 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 08/01/2026 at 12:50:46

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