PRINCIPAL COMMISSIONER OF INCOME TAX-I vs. M/S OM METALS INFRA PROJECTS LTD.

ITA/123/2019HC RajasthanRJHC02074333201926 March 2025Bench: AVNEESH JHINGAN,MANEESH SHARMA2 pages

AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the appeals filed by the revenue are not maintainable. The primary reason for this decision is that the tax effect in the appeals is below two crores, which is a threshold specified in the circular of the Central Board of Direct Taxes dated 17.09.2024. The revenue's counsel could not demonstrate any grounds to qualify for exceptions to this circular. Consequently, the appeals were dismissed. The Tribunal explicitly stated that the formulated substantial question of law is kept open. No specific findings on the merits of the income tax assessment were made as the appeals were dismissed on a procedural ground.

What were the facts?

These are four connected appeals filed by the Principal Commissioner of Income Tax-I, Jaipur, against M/s Om Metals Infra Projects Ltd. The appeals challenge orders passed by the Income Tax Appellate Tribunal (ITAT). The tax effect in these appeals is stated to be below two crores. The appeals were heard by the High Court of Judicature for Rajasthan, Bench at Jaipur. The procedural history leading to the ITAT's decision is not detailed in this judgment.

What were the issues?

1. Whether the appeals filed by the revenue are maintainable given the tax effect being below two crores, in light of the CBDT Circular dated 17.09.2024? Assessee's Contention: Not recorded. Revenue's Contention: The revenue argued that the appeals should be maintainable. However, the judgment notes that the learned counsel for the appellant (revenue) was not able to make out a case to bring the appeals within the ambit of exceptions mentioned in the circular.

AI-generated summary — verify with the full judgment below

[2025:RJ-JP:13802-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 122/2019 Principal Commissioner Of Income Tax-I, New Central Revenue Building, Statue Circle, Jaipur (Raj) ----Appellant Versus M/s Om Metals Infra Projects Ltd., Om Tower, Church Road, M.i. Road, Jaipur Pan/gir No. Aaaco8245J ----Respondent Connected With D.B. Income Tax Appeal No. 120/2019 Principal Commissioner Of Income Tax-I, New Central Revenue Building, Statue Circle, Jaipur (Raj) ----Appellant Versus M/s Om Metals Infra Projects Ltd., Om Tower, Church Road, M.i. Road, Jaipur Pan/gir No. Aaaco8245J ----Respondent D.B. Income Tax Appeal No. 121/2019 Principal Commissioner Of Income Tax-I, New Central Revenue Building, Statue Circle, Jaipur (Raj) ----Appellant Versus M/s Om Metals Infra Projects Ltd., Om Tower, Church Road, M.i. Road, Jaipur Pan/gir No. Aaaco8245J ----Respondent D.B. Income Tax Appeal No. 123/2019 Principal Commissioner Of Income Tax-I, New Central Revenue Building, Statue Circle, Jaipur (Raj) ----Appellant Versus M/s Om Metals Infra Projects Ltd., Om Tower, Church Road, M.i. Road, Jaipur Pan/gir No. Aaaco8245J ----Respondent

[2025:RJ-JP:13802-DB] (2 of 2) [ITA-122/2019] For Appellant(s) : Mr. Anuroop Singhi with Mr. Aditya Khandelwal For Respondent(s) : Mr. Devang Gargieya for Mr. Mahendra Gargieya HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE MANEESH SHARMA Order 26/03/2025 1. The tax effect in the appeals is below two crores. The appeals are not maintainable in view of the circular of the Central Board of Direct Taxes dated 17.09.2024. 2. Learned counsel for appellant has not been able to made out a case to bring the appeals within the ambit of exceptions mentioned in the circular. 3. The appeals are dismissed. 4. The formulated substantial question of law is kept open. (MANEESH SHARMA),J (AVNEESH JHINGAN),J Simple Kumawat /103, 105, 106 & 107

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