PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI-12 vs. SALONI NARANG

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ITA/779/2026HC DelhiDLHC01046487202628 September 2026Author: HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD,HON'BLE MS. JUSTICE RENU BHATNAGAR2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Delhi High Court held that it was not inclined to entertain the present appeal filed under Section 260A of the Income Tax Act, 1961, because the tax effect was less than Rs. 2 crores, in accordance with Circular No. 09/2024. The reasoning was based on the policy outlined in the circular, which guides the High Court's discretion in entertaining appeals. Following this observation, the learned counsel for the Appellant sought permission to withdraw the appeal. The Court accordingly disposed of the appeal as withdrawn. No decision was made on the merits of the original ITAT order.

What were the facts?

The Principal Commissioner of Income Tax, Delhi-12 (Appellant) filed an appeal under Section 260A of the Income Tax Act, 1961, before the Delhi High Court. The appeal challenged an order dated 27.10.2025, passed by the Income Tax Appellate Tribunal, Delhi Branch. The Appellant sought condonation of a delay of 184 days in re-filing the appeal, which was allowed. However, the Court noted that the tax effect in the appeal was less than Rs. 2 crores. Consequently, in view of Circular No. 09/2024, the Court was not inclined to entertain the appeal. The learned counsel for the Appellant then sought permission to withdraw the appeal.

What were the issues?

1. Whether the Delhi High Court should entertain the present appeal filed under Section 260A of the Income Tax Act, 1961, given that the tax effect is less than Rs. 2 crores, in light of Circular No. 09/2024? Assessee's Contention: The assessee (Respondent) did not explicitly argue any points as the appeal was withdrawn by the appellant. However, the Court's decision was based on its own inclination not to entertain appeals with a tax effect below Rs. 2 crores, as per the circular. Revenue's Contention: The Appellant (Principal Commissioner of Income Tax) sought to withdraw the appeal after the Court indicated its reluctance to entertain the matter due to the low tax effect, citing Circular No. 09/2024.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~46 * IN THE HIGH COURT OF DELHI AT NEW DELHI # CNR No. DLHC010464872026 + ITA 779/2026 PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI-12 .....Appellant Through: Mr. Indruj Singh Rai, SSC Mr. Sanjeev Menon, JSC Mr. Rahul Singh, JSC Ms. Priya Sarkar, JSC Mr. Gaurav Kumar and Mr. Prateek Bhati Advocates versus SALONI NARANG .....Respondent Through: Dr. Rakesh Gupta, Sr. Advocate with Mr. Dushyant Agrawal, Adv. CORAM: HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD HON'BLE MS. JUSTICE RENU BHATNAGAR

O R D E R %

28.09.

2026 CM APPL. 66906/2026 (Exemption) Allowed, subject to all just exceptions. CM APPL. 66905/2026

This Application has been filed on behalf of the Appellant seeking condonation of delay of 184 days in re-filing the present Appeal.

For the reasons stated in the Application, the same is allowed. The delay of 184 days in re-filing the Appeal stands condoned.

The Application is disposed of. 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 05/10/2026 at 10:42:27

ITA 779/2026

The present Appeal under Section 260A of the Income Tax Act, 1961 has been filed by the Appellant challenging the Order dated 27.10.2025, passed by the Income Tax Appellate Tribunal, Delhi Branch.

Since the tax effect in the present Appeal is less than Rs. 2 crores, in view of the Circular No.09/2024, this Court is not inclined to entertain the present Appeal.

In view of the above, learned Counsel for the Appellant seeks permission to withdraw the Appeal.

Accordingly, the Appeal is disposed of as withdrawn. Pending applications, if any, also stand disposed of. SUBRAMONIUM PRASAD, J RENU BHATNAGAR, J SEPTEMBER 28, 2026 hsk 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 05/10/2026 at 10:42:27

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