COMMISSIONER OF INCOME TAX-III vs. SAMTEL COLOR LIMITED

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ITA/538/2014HC DelhiDLHC01120702201423 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 decided to dismiss the appeal on the ground of low tax effect. The court referenced Circular No. 9/2024 dated 17 September 2024, which stipulates that appeals with a tax effect below INR 2 Crores are not liable to be continued. Consequently, the appeal was dismissed on this administrative basis. The court explicitly stated that the proposed questions of law are kept open to be urged and addressed in an appropriate future case, indicating no decision on the substantive legal merits of the appeal.

What were the facts?

This appeal, ITA 538/2014, was filed by the Commissioner of Income Tax-III (the Revenue) against Samtel Color Limited (the Assessee). The appeal concerns assessment years not specified in the judgment. The order or action under challenge is not detailed, nor is the authority that passed it. The amount in dispute is also not explicitly stated, but the tax effect is mentioned as falling below INR 2 Crores. The procedural history is limited to the filing of this appeal before the High Court of Delhi.

What were the issues?

The High Court of Delhi was presented with an appeal by the Revenue. The primary issue before the court was whether the appeal should be continued given the tax effect. The Revenue, through its counsel, did not argue the merits of the case. The Assessee's appearance was not given, and therefore, no arguments were recorded on its behalf. The court's decision was based on a subsequent administrative instruction regarding low tax effect appeals.

AI-generated summary — verify with the full judgment below

$~78 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 538/2014

COMMISSIONER OF INCOME TAX-III .....Appellant Through: Mr. Indruj Rai, SSC with Mr. Sanjeev Menon, Mr. Rahul Singh, JScs, Mr. Anmol Jagga & Mr. Gaurav Kumar, Advs.

versus

SAMTEL COLOR LIMITED

.....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 12:03:00

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