PRINCIPAL COMMISSIONER OF vs. M/S BHIMA JEWELLERY

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TCA/864/2017HC Madras2026/MHC/423412 October 2026Bench: Honourable Dr.Justice ANITA SUMANTH2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court recorded the submission of the learned Senior Standing Counsel for the appellant/Department that the Income-Tax Department does not wish to pursue the Tax Case (Appeal) for the assessment year 2011-2012 and seeks withdrawal of the same on account of low tax effect, as per Circular bearing No.9 of 2024 dated 17.09.2024. Recording this submission, the Court dismissed the Tax Case (Appeal) as withdrawn. The Court explicitly stated that the questions of law are left open to be decided in an appropriate matter. No costs were awarded. The operative direction was the dismissal of the appeal as withdrawn.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Central-2, Chennai (the Revenue) against an order of the Income Tax Appellate Tribunal (ITAT), Madras, 'D' Bench, dated 31.05.2017 in ITA.No.109/Mds/2017. The assessee is M/s.Bhima Jewellery, Madurai. The assessment year in question is 2011-2012. The Revenue sought to withdraw the appeal on the grounds of low tax effect, as per Circular No.9 of 2024 dated 17.09.2024. The respondent/assessee did not appear before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed as withdrawn on account of low tax effect, as per Circular No.9 of 2024. The Revenue argued that it does not wish to pursue the Tax Case (Appeal) for the assessment year 2011-2012 and seeks withdrawal of the same due to low tax effect, citing Circular No.9 of 2024 dated 17.09.2024. The Revenue relied on this circular to support its request for withdrawal. The assessee did not appear before the court, and therefore, no arguments were recorded on their behalf.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

2026:MHC:4234 TC(A).No.864 of 2017 __________ Page 1 of 2 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 12-10-2026 CORAM THE HON'BLE DR.JUSTICE ANITA SUMANTH AND THE HON'BLE MR.JUSTICE K.RAJASEKAR TC(A).No.864 of 2017 CNR: {HCMA012036562017} The Principal Commissioner of Income Tax, Central-2, No.108 Mahatma Gandhi Road, Chennai. ..Appellant Vs M/s.Bhima Jewellery, No.137, West Masi Street, Madurai - 625 001. ..Respondent Prayer: Tax Case Appeal filed under Section 260-A of Income Tax Act, 1961, against the Order of the Income Tax Appellate Tribunal Madras, ‘D’ Bench, dated 31.05.2017 in ITA.No.109/Mds/2017. For Appellant: Mr.Prabhu Mukunth Arunkumar Senior Standing Counsel For Respondent: No appearance https://www.mhc.tn.gov.in/judis ( Uploaded on: 15/10/2026 04:22:49 pm ) 2026:MHC:4234 TC(A).No.864 of 2017 __________ Page 2 of 2 DR.ANITA SUMANTH, J. AND K.RAJASEKAR, J. JUDGMENT (Delivered by Dr.Anita Sumanth, J.) Mr.Prabhu Mukunth Arunkumar, learned Senior Standing Counsel appearing for the appellant/Department, would submit that the Income-Tax Department does not wish to pursue the Tax Case (Appeal) qua assessment year 2011-2012 and seeks withdrawal of the same on account of low tax effect, per Circular bearing No.9 of 2024 dated 17.09.2024. 2. Recording the aforesaid submission, this Tax Case (Appeal) is dismissed as withdrawn leaving the questions of law open to be decided in an appropriate matter. No costs. (A.S.M.,J.) (K.R.S.,J.) 12-10-2026 Index: Yes/No Speaking order Neutral Citation: Yes hvk TC(A).No.864 of 2017 https://www.mhc.tn.gov.in/judis ( Uploaded on: 15/10/2026 04:22:49 pm )

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