PR. COMMISSIONER OF INCOME TAX vs. M/S THE LAKE PALACE HOTELS AND MOTELS PVT. LTD.

ITA/26/2024HC Rajasthan2026:RJ-JD:49257-DB08 October 2026Bench: SANJAY K. AGRAWAL, BALJINDER SINGH SANDHU1 pages

AI SummaryDismissed

What did the High Court hold?

The Tribunal decided that the appeal was non-maintainable. This decision was based on the joint submission of both the appellant (revenue) and the respondent (assessee) that the issue was covered by the judgment in Commissioner of Income Tax-I Vs. Satish Kumar Agarwal, decided on 27.09.2024. Furthermore, the dismissal was explicitly stated to be in view of Circular 9 of 2024. The reasoning is that if the tax effect is below a certain threshold (implied by the submission regarding Rs. 2 Crores) and the issue is covered by precedent and administrative instructions, the appeal should not proceed. The operative direction was to dismiss the appeal. The proposed substantial questions of law were expressly left undecided.

What were the facts?

The appeal was filed by the Pr. Commissioner of Income Tax, Udaipur (appellant/revenue) against M/s The Lake Palace Hotels And Motels Pvt. Ltd. (respondent/assessee). The appeal challenges an order or action that is not explicitly stated in the provided text. The procedural history indicates that on 16.09.2026, the tax effect was examined. On 08/10/2026, learned counsel for the appellant submitted that the tax effect was found to be less than Rs. 2 Crores. Both parties agreed that the issue was covered by a judgment of a Coordinate Bench in Commissioner of Income Tax-I Vs. Satish Kumar Agarwal, decided on 27.09.2024. The appeal was dismissed as non-maintainable in view of Circular 9 of 2024.

What were the issues?

The judgment does not explicitly frame questions of law. However, the core issue appears to be the maintainability of the appeal. The appellant (revenue) argued that the appeal's tax effect was less than Rs. 2 Crores, implying it might fall under a threshold for appeal. Both parties contended that the issue is covered by the Coordinate Bench's decision in Commissioner of Income Tax-I Vs. Satish Kumar Agarwal (dated 27.09.2024). The revenue also implicitly relied on Circular 9 of 2024 as the basis for dismissal. The assessee's specific arguments are not detailed, but their agreement on the covered issue and the circular suggests they supported the dismissal. The judgment notes that proposed substantial questions of law were kept open.

AI-generated summary — verify with the full judgment below

[2026:RJ-JD:49257-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 26/2024 CNR: RJHC010447822024 | URN: ITA / 114U / 2024 Pr. Commissioner Of Income Tax, Udaipur. ----Appellant Versus M/s The Lake Palace Hotels And Motels Pvt. Ltd., City Palace, Udaipur. ----Respondent For Appellant(s) : Mr. K.K. Bissa. For Respondent(s) : Mr. Anjay Kothari. HON'BLE THE CHIEF JUSTICE MR. SANJAY K. AGRAWAL HON'BLE MR. JUSTICE BALJINDER SINGH SANDHU Order 08/10/2026 1. Learned counsel for the appellant fairly submits that in compliance of the order dated 16.09.2026, the tax effect has been examined and is found to be less than Rs.2 Crores. 2. Learned counsel for the parties fairly submit that present issue is covered by the judgment passed by a Coordinate Bench of this Court, led by (Commissioner of Income Tax-I Vs. Satish Kumar Agarwal)1, decided on 27.09.2024. 3. In view of the joint submission, present appeal is dismissed as non-maintainable in view of the Circular 9 of 2024. 4. The proposed substantial questions of law are kept open. (BALJINDER SINGH SANDHU),J (SANJAY K. AGRAWAL),CJ 44/Mohd Zeeshan 1 D.B. Income Tax Appeal No.8/2021 Powered by TCPDF (www.tcpdf.org) (Uploaded on 08/10/2026 at 06:19:33 PM) (Downloaded on 28/10/2026 at 12:42:36 AM)

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