THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs. YUM! RESTAURANTS ( ASIA ) PTE. LTD.

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ITA/720/2023HC DelhiDLHC01043829202124 February 2025Bench: CASES PERTAINING TO SPL.DIVISION BENCHES1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal is not liable to be continued due to the low tax effect, which is below INR 2 Crores, in light of Circular No. 9/2024 dated 17 September 2024. Consequently, the appeal was dismissed on this ground. The Court explicitly stated that the proposed questions of law are kept open to be urged and addressed in an appropriate case, indicating no decision on the merits of the underlying tax dispute. No specific relief was granted or denied on the substantive issues.

What were the facts?

This appeal, ITA 720/2023, was filed by the Commissioner of Income Tax - International Taxation - 3 (the Revenue) against YUM! RESTAURANTS (ASIA) PTE. LTD. (the Assessee). The judgment does not specify the assessment year(s) or the specific order or action under challenge, nor does it mention the amount in dispute. The procedural history is limited to the filing of this appeal before the High Court of Delhi.

What were the issues?

The High Court was to decide on the appeal filed by the Revenue. The judgment does not explicitly frame questions of law. However, the core issue revolves around the appeal's maintainability. The Revenue, through its counsel, acknowledged that the tax effect in this appeal falls below INR 2 Crores. The Assessee, represented by its counsel, did not present any arguments as the appeal was dismissed on the ground of low tax effect.

AI-generated summary — verify with the full judgment below

$~16 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 720/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC and Ms. Aditi Sabharwal, Advs.

versus

YUM! RESTAURANTS ( ASIA ) PTE. LTD. .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Neeraj Jain, Mr. Aniket D. Agrawal and Mr. Abhishek Singhvi, Advs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE RAVINDER DUDEJA

O R D E R %

24.02.2025 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.

RAVINDER DUDEJA, J. FEBRUARY 24, 2025/DR 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 14:30:54

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