COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-2 vs. INTEVA PRODUCTS NETHERLANDS BV

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ITA/625/2023HC DelhiDLHC01045900202315 January 2025Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeals were liable to be dismissed on the ground of low tax effect. This decision was based on the fact that the tax effect in these appeals fell below INR 2 Crores, making them ineligible for continuation in light of Circular No. 9/2024 dated 17 September 2024. The Court explicitly stated that the proposed questions of law are kept open to be urged and addressed in an appropriate case. The operative direction was the dismissal of the appeals. No specific findings were made on the merits of the substantive tax dispute, as the appeals were disposed of on a procedural ground.

What were the facts?

These appeals, ITA 625/2023 and ITA 628/2023, were filed by the Commissioner of Income Tax (International Taxation)-2 (the Revenue) against Inteva Products Netherlands BV (the Assessee). The appeals challenged orders from the Income Tax Appellate Tribunal (ITAT). The core of the dispute revolved around tax effect which, as stated in the judgment, falls below INR 2 Crores. The appeals were listed for hearing on 15.01.2025, with a subsequent date of 24 February 2025 also cancelled. Pending applications were disposed of.

What were the issues?

The primary issue before the High Court was whether the appeals filed by the Revenue should be continued, given the tax effect involved. The judgment does not explicitly frame questions of law. However, the implicit question is whether the appeals are maintainable in light of the low tax effect. The Revenue, by filing the appeals, contended that the matters warrant adjudication. The Assessee's position is not explicitly recorded in terms of arguments presented, but the outcome suggests the Assessee would have benefited from the dismissal based on low tax effect. The judgment directly references Circular No. 9/2024 dated 17 September 2024, which provides guidelines for the withdrawal of appeals by the Revenue based on tax effect thresholds.

AI-generated summary — verify with the full judgment below

$~135 & 136 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 625/2023, CM APPL. 2223/2025 COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-2

.....Appellant Through: Mr. Sanjay Kumar, SSC with Ms. Monica Benjamin and Ms. Easha Kadian, JSCs.

versus

INTEVA PRODUCTS NETHERLANDS BV .....Respondent

Through: Dr. Shashwat Bajpai, Adv. 136 + ITA 628/2023, CM APPL. 2222/2025 COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-2

.....Appellant Through: Mr. Sanjay Kumar, SSC with Ms. Monica Benjamin and Ms. Easha Kadian, JSCs.

versus

INTEVA PRODUCTS NETHERLANDS BV .....Respondent

Through: Dr. Shashwat Bajpai, Adv.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

O R D E R %

15.01.2025

Undisputedly, the tax effect which forms the subject matter of these appeals 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. The appeals are, 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. 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 12:02:58

The date of 24 February 2025 shall stand cancelled. Pending applications shall stand disposed of.

YASHWANT VARMA, J.

HARISH VAIDYANATHAN SHANKAR, J. JANUARY 15, 2025/neha/nd

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 12:02:58

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