PR COMMISSIONER OF INCOME TAX 4 NEW DELHI vs. MS MOLYCODDLE FASHIONS PVT LTD

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ITA/64/2025HC DelhiDLHC01110424202412 March 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 of Delhi dismissed the appeal filed by the Revenue. The primary reason for dismissal was the low tax effect, which was below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024. The Court noted that the tax effect was not covered by any exceptions mentioned in the circular. Therefore, the appeal was not entertained on its merits. No finding was given on the substantive issues that might have been before the ITAT. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, represented by the Pr. Commissioner of Income Tax, filed an appeal under Section 260A of the Income Tax Act, 1961, challenging an order dated 30.10.2023 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 1126/Del/2019. The appeal pertains to the assessment year 2012-13. The assessee is MS Molycoddle Fashions Pvt Ltd. The appeal was heard by the High Court of Delhi. The learned counsel for both parties stated that the tax effect involved in the appeal was below the threshold limit of ₹2,00,00,000/- as stipulated in the Circular dated 17.09.2024 and was not covered by any exceptions mentioned in the circular.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect involved? The Revenue argued that the appeal should be heard on merits. However, the Revenue's counsel, along with the counsel for the respondent, conceded 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. The respondent (assessee) was represented by 'None'.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

$~55 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 64/2025 & CM APPL. 14903/2025

PR COMMISSIONER OF INCOME TAX 4 NEW DELHI .....Appellant Through: Mr. Shlok Chandra, Sr. SC with Ms. Naincy Jain, Jr. SC with Ms. Madhavi Shukla, Jr. SC

Versus

MS MOLYCODDLE FASHIONS PVT LTD .....Respondent

Through: None

CORAM:

HON'BLE THE CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

12.03.2025 1. The Revenue has filed the present appeal under section 260A of the Income Tax Act, 1961 impugning the order dated 30.10.2023 passed by the learned Income Tax Appellate Tribunal in ITA No. 1126/Del/2019 for the assessment year 2012-13. 2. At the outset, the learned counsel appearing for the parties 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 MARCH 12, 2025/rl 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 28/04/2025 at 15:55:05

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