COMMISSIONER OF INCOME TAX CENTRAL-2 vs. PRABHATAM BUILDTECH PVT.LTD.

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ITA/936/2017HC DelhiDLHC01454840201703 February 2025Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal on the ground of low tax effect. The Court noted that the tax effect in this appeal falls below INR 2 Crores, making it 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. Therefore, no decision was made on the merits of the appeal. The operative direction was the dismissal of the appeal.

What were the facts?

This appeal was filed by the Commissioner of Income Tax Central-2 (the Revenue) against Prabhatam Buildtech Pvt. Ltd. (the Assessee). The assessment year(s) are not specified in the judgment. The order or action under challenge is the appeal itself, which the Revenue sought to pursue. The procedural history involves the Revenue filing this appeal before the High Court. The amount in dispute is not explicitly stated, but the judgment notes that the tax effect falls below INR 2 Crores.

What were the issues?

The High Court was not required to decide any substantive questions of law or fact. The primary issue before the Court was whether the appeal should be entertained given the tax effect. The Revenue, as the appellant, would have argued for the appeal to be heard on its merits. The Assessee, as the respondent, would likely have contended that the appeal should be dismissed due to the low tax effect, referencing the relevant circular.

AI-generated summary — verify with the full judgment below

$~76 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 936/2017 COMMISSIONER OF INCOME TAX CENTRAL-2

.....Appellant Through: Mr. Debesh Panda, SSC with Ms. Zehra Khan, Mr. Vikram Aditya, Advs.

versus

PRABHATAM BUILDTECH PVT.LTD. .....Respondent Through: Mr. Gautam Jain, Mr. Manish Yadav, Advs.

CORAM:

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

O R D E R %

03.02.2025 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. 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. FEBRUARY 3, 2025/neha 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 14:47:38

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