COMMISSIONER OF INCOME TAX-VI vs. M/S VIPUL LTD.

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ITA/333/2014HC DelhiDLHC01182184201323 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 held that the tax effect in this appeal falls below INR 2 Crores. Consequently, in light of the provisions 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 explicitly kept open to be urged and addressed in an appropriate future case. No specific findings were made on the merits of the case.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax-VI (the Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is M/s Vipul Ltd. The appeal concerns a tax effect that falls below INR 2 Crores. The Revenue has chosen to withdraw this appeal based on the provisions of Circular No. 9/2024 dated 17 September 2024, which mandates the discontinuation of appeals with a tax effect below a certain threshold.

What were the issues?

1. Whether the appeal, having a tax effect below INR 2 Crores, is liable to be dismissed in light of Circular No. 9/2024 dated 17 September 2024? (Question of law) The Revenue argued that the appeal should be dismissed due to the low tax effect, as per Circular No. 9/2024. No arguments were recorded for the assessee.

AI-generated summary — verify with the full judgment below

$~74 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 333/2014

COMMISSIONER OF INCOME TAX-VI .....Appellant Through: Mr. Shlok Chandra, SSC, Ms. Naincy Jain & Ms. Madhavi Shukla, JSCs

versus

M/S VIPUL 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 %

23.01.2025

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 23, 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 27/01/2025 at 12:02:59

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