COMMISSIONER OF INCOME TAX DELHI CENTRAL II vs. DELHI CYLINDER & TRADING P. LTD.

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ITA/42/2008HC DelhiDLHC01141916200728 November 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court held that the present appeal filed by the Revenue is dismissed on account of low tax effect. The learned counsel for the Revenue submitted that the tax effect involved in the appeal is below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024 and does not fall under any of the exceptions provided in the circular. Based on this submission, the Court found no reason to proceed with the appeal on merits. The ratio of this decision is that appeals with a tax effect below the prescribed monetary limit, and not falling under any exceptions, will be dismissed by the High Court. No specific issue regarding the ITAT's order on merits was decided.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax Delhi Central II, filed an appeal before the Delhi High Court challenging an order dated 27.04.2007 passed by the Income Tax Appellate Tribunal (ITAT). The ITAT's order pertained to the block assessment period from 01.04.1990 to 14.02.2001, covering assessment years 1991-1992 to 2001-2002 (up to 14.02.2001). The assessee in this case is Delhi Cylinder & Trading P. Ltd. The appeal was filed by the Revenue against the ITAT's decision.

What were the issues?

1. Whether the present appeal filed by the Revenue is maintainable given the tax effect involved. The Revenue's counsel stated that the tax effect in the present appeal is below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024 and is not covered by any exceptions mentioned in the circular. The Revenue's argument is based on the low tax effect as per the circular, implying the appeal should be dismissed on this ground. The judgment does not record any counter-argument from the assessee on this specific issue, as the appeal was dismissed on the Revenue's submission.

AI-generated summary — verify with the full judgment below

$~R-2 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 42/2008

COMMISSIONER OF INCOME TAX DELHI CENTRAL II

.....Appellant

Through: Mr. Puneet Rai, SSC.

versus

DELHI CYLINDER & TRADING P. LTD. .....Respondent Through: Ms. Kavita Jha, Senior Advocate with Mr. Vaibhav Kulkarni & Mr. Udit Naresh, Advocates.

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU

HON'BLE MS. JUSTICE SWARANA KANTA SHARMA

O R D E R %

28.11.2024 1. The Revenue has filed the present appeal impugning the order dated 27.04.2007 passed by the learned Income Tax Appellate Tribunal in IT(SS)A No. 346/Delhi/2005 for the block assessment period 01.04.1990 to 14.02.2001, comprising assessment year (AY) 1991-1992 to AY 2001-2002 (upto 14.02.2001). 2. At the outset, the learned counsel appearing for the Revenue states that the tax effect involved in the present appeal is below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024 and is not covered by any exceptions as set out in the circular. 3. Accordingly, the present appeal is dismissed on account of low tax effect. VIBHU BAKHRU, J

SWARANA KANTA SHARMA, J NOVEMBER 28, 2024/at

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 02/12/2024 at 12:08:07

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