THE PR. COMMISSIONER OF INCOME TAX -15 vs. CROWN INTERNATIONAL

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ITA/43/2025HC DelhiDLHC01054050202124 February 2025Bench: HON'BLE MR. JUSTICE TUSHAR RAO GEDELA,HON'BLE CHIEF JUSTICE DEVENDRA KUMAR UPADHYAYA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was not maintainable due to low tax effect. The Revenue's counsel themselves submitted that the tax effect involved was below the threshold limit of ₹2,00,00,000/- as per the Circular dated 17.09.2024 and did not fall within any of the exceptions. Based on this submission, the Court found no reason to proceed with the merits of the appeal. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limits, without falling under any exceptions, are liable to be dismissed. The operative direction was the dismissal of the appeal.

What were the facts?

The Principal Commissioner of Income Tax -15 (Revenue) filed an appeal before the Delhi High Court challenging an order dated 18.05.2021 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.2531/Del/2019. The appeal pertained to the assessment year 2014-15. The Revenue's counsel stated that the tax effect in the present appeal was below the threshold limit of ₹2,00,00,000/- as per the Circular dated 17.09.2024 and did not fall under any exceptions. Consequently, the appeal was dismissed on the grounds of low tax effect.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect involved. The Revenue contended 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. Therefore, the appeal should be dismissed on this ground. The Respondent (assessee) did not present any arguments as the appeal was dismissed on a preliminary ground raised by the Revenue.

AI-generated summary — verify with the full judgment below

$~143 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 43/2025 & CM APPL. 11079/2025

THE PR. COMMISSIONER OF INCOME TAX -15 .....Appellant Through: Mr. Ruchir Bhatia, Senior Standing Counsel.

versus

CROWN INTERNATIONAL

.....Respondent

Through:

CORAM:

HON'BLE THE CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

24.02.2025 1. The Revenue has filed the present appeal impugning the order dated 18.05.2021 passed by the learned Income Tax Appellate Tribunal in ITA No.2531/Del/2019 for the assessment year 2014-15. 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.

DEVENDRA KUMAR UPADHYAYA, CJ

TUSHAR RAO GEDELA, J FEBRUARY 24, 2025/yrj 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 01/03/2025 at 14:30:53

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