PR. COMMISSIONER OF INCOME TAX CENTRAL 2 NEW DELHI vs. M/S TEGH INTERNATIONAL

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ITA/829/2016HC DelhiDLHC01296613201630 January 2025Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the appeal should be dismissed on the ground of low tax effect. The reasoning was based on the fact that the tax effect falls below INR 2 Crores, making it ineligible for continuation under Circular No. 9/2024 dated 17 September 2024. The ratio decidendi is that appeals with a tax effect below the threshold stipulated in the relevant circulars are to be dismissed on that administrative ground. The proposed questions of law were expressly left open to be urged and addressed in an appropriate case. No operative directions were issued as the appeal was dismissed.

What were the facts?

This appeal was filed by the Principal Commissioner of Income Tax, Central 2, New Delhi, against M/s Tegh International. The appeal concerns the tax effect which falls below INR 2 Crores. The judgment does not specify the assessment year(s) or the specific order or action under challenge, nor the authority that passed it. The procedural history is limited to the filing of this appeal by the revenue.

What were the issues?

1. Whether the appeal should be dismissed on the ground of low tax effect, in light of Circular No. 9/2024 dated 17 September 2024? (Question of law) Assessee's contentions: Not recorded. Revenue's contentions: The revenue, through its counsel, acknowledged that the tax effect in this appeal falls below INR 2 Crores and is therefore not liable to be continued as per the provisions of Circular No. 9/2024.

AI-generated summary — verify with the full judgment below

$~354 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 829/2016 PR. COMMISSIONER OF INCOME TAX CENTRAL 2 NEW DELHI

.....Appellant

Through: Mr. Arvind Kumar, Adv.

versus

M/S TEGH INTERNATIONAL

.....Respondent

Through: Appearance not given.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

O R D E R %

30.01.2025

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 30, 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 06/02/2025 at 14:47:40

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