PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) -3 vs. VAAAN INFRA PRIVATE LIMITED

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ITA/513/2025HC DelhiDLHC01127906202406 August 2026Author: HON'BLE MR. JUSTICE RAJNEESH KUMAR GUPTA,HON'BLE MR. JUSTICE DINESH MEHTA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal cannot continue. The court accepted the submission made by the learned counsel for the respondent (assessee) that the tax effect involved in the present appeal is below the limits prescribed in CBDT Circular No.5/2024 dated 15.03.2024 read with Circular No. 9/2024 dated 17.09.2024. The assessment order dated 31.03.2022, which gave effect to the Principal Commissioner's order under Section 263 of the Income Tax Act, 1961, determined the assessee's total income at Rs.3,42,45,148/-. The court found that the tax calculated on this income would fall below the prescribed monetary limits. Therefore, the appeal was dismissed on this ground. No other issue was decided on merits.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central) -3 against an order that gave effect to a Section 263 order passed by the Principal Commissioner of Income Tax, Delhi-7. The Assessing Officer (AO) had passed an assessment order on 31.03.2022, determining the assessee's (VAAAN INFRA PRIVATE LIMITED) total income at Rs.3,42,45,148/-. The respondent's counsel submitted that the tax effect arising from this assessment falls below the monetary limits prescribed by CBDT Circular No.5/2024 and Circular No. 9/2024. Consequently, the appeal cannot be pursued.

What were the issues?

1. Whether the appeal can be continued when the tax effect is below the prescribed monetary limits as per CBDT Circular No.5/2024 and Circular No. 9/2024? Assessee's contention: The appeal cannot continue as the tax effect involved is below the limits prescribed in CBDT Circular No.5/2024 dated 15.03.2024 read with Circular No. 9/2024 dated 17.09.2024. The assessment order dated 31.03.2022, giving effect to the Principal Commissioner's Section 263 order, resulted in a total income of Rs.3,42,45,148/-, upon which the calculated tax would be below the stipulated threshold. Revenue's contention: No specific contention was recorded for the revenue in this regard.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~22 * IN THE HIGH COURT OF DELHI AT NEW DELHI # CNR No. DLHC011279062024 + ITA 513/2025 & CM APPL. 64209/2025 PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) -3 .....Appellant Through: Mr. Siddhartha Sinha, SSC with Ms. Easha Gurung, JSC. versus VAAAN INFRA PRIVATE LIMITED .....Respondent Through: Mr. Manish Yadav & Ms. Nitika Choudhary, Advs. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE RAJNEESH KUMAR GUPTA

O R D E R %

06.08.

2026

1.

Learned counsel for respondent submitted that the appeal in hands cannot continue, as the tax effect involved in the present appeal is below the limits as prescribed in CBDT Circular No.5/2024 dated 15.03.2024 read with Circular No. 9/2024 dated 17.09.2024. 2. In this regard, learned counsel for the respondent submitted that pursuant to the order dated 30.03.2021 passed by the Principal Commissioner of Income Tax, Delhi-7 (hereinafter referred to as ‘the Authority’) under Section 263 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act of 1961’), the Assessing Officer (AO) has passed an assessment order dated 31.03.2022 giving effect to the order of the Authority, wherein the assessee 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 11/08/2026 at 11:35:29

has been assessed at total income of Rs.3,42,45,148/-. If the tax is calculated thereupon, it will fall below the prescribed limit provided in the aforesaid circular. And, hence, the appeal is liable to be dismissed.

3.

In view of the aforesaid, the appeal is dismissed.

DINESH MEHTA, J.

RAJNEESH KUMAR GUPTA, J. AUGUST 6, 2026/sid

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 11/08/2026 at 11:35:29

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