PRINCIPAL COMMISSIONER OF INCOME TAX DELHI-20 vs. M/S CA COOPERATIVE THRIFT AND CREDIT SOCIETY LTD

PDF · subscribers
ITA - 335 / 2024HC Delhi10 July 20243 pages
For Petitioner: ABHISHEK
AI SummaryPartly Allowed

What did the High Court hold?

The High Court condoned the delay in refiling and admitted the appeals. It held that the appeals are maintainable despite the low tax effect, citing an exception for Section 263 orders where tax liability cannot be quantified.

What were the facts?

The Revenue filed appeals against an ITAT order that set aside a Section 263 order. The respondent society raised a preliminary objection regarding the maintainability of the appeal due to low tax effect.

What were the issues?

Whether the ITAT was justified in setting aside the Section 263 order and directing the Assessing Officer to allow the Section 80P(2)(a)(i) deduction.

Which sections of the Income-tax Act were involved?

Section 263,Section 80P(2)(d),Section 80P(2)(a)(i)

AI-generated summary — verify with the full judgment below

$~185 & 186 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 335/2024

PRINCIPAL COMMISSIONER OF INCOME TAX DELHI-20 .....Appellant Through: Mr. Abhishek Maratha, Sr. SC alongwith Mr. Parth Semiwal, Mr. Apoorv Agarwal, Jr. SCs. with Ms. Nupur Sharma, Mr. Manav Goyal, Mr. Gaurav Singh, Ms. Divya Verma and Mr. Bhanukaran Singh Jodha, Advs.

versus

M/S. CA COOPERATIVE THRIFT AND CREDIT SOCIETY LTD

.....Respondent Through: Mr. Deepanshu Jain, Mr. Shantanu Jain, Mr. Manish Yadav, Advs.

186 + ITA 336/2024 PRINCIPAL COMMISSIONER OF INCOME TAX-20 DELHI

.....Appellant Through: Mr. Abhishek Maratha, Sr. SC alongwith Mr. Parth Semiwal, Mr. Apoorv Agarwal, Jr. SCs. with Ms. Nupur Sharma, Mr. Manav Goyal, Mr. Gaurav Singh, Ms. Divya Verma and Mr. Bhanukaran Singh Jodha, Advs.

versus

CA COOPERATIVE THRIFT AND CREDIT SOCIETY LTD .....Respondent Through: Mr. Deepanshu Jain, Mr. Shantanu Jain, Mr. Manish 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 27/03/2026 at 12:31:53

Yadav, Advs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE RAVINDER DUDEJA

O R D E R %

10.07.2024 CM APPL. 38206/2024 in ITA 335/2024 & CM APPL. 38247/2024 in ITA 336/2024

Bearing in mind the disclosures made, the delay in refiling the appeals is condoned. The applications shall stand disposed of.

ITA 335/2024 & ITA 336/2024

1.

Notice. Since the respondents are duly represented, no further steps need be taken. 2. We take note of the preliminary objection which stands raised with learned counsel for the respondent submitting that the appeal would not be maintainable in light of low tax effect. We, however, take note of the exception which stands embodied in Para 3.1 (f) of the CBDT Circular 5/2024 dated 15 March 2024 and which speaks of situations where the tax prescriptions otherwise stipulated would not be applicable in cases where an appeal before the Tribunal was directed against an order passed under Section 263 of the Income Tax Act, 1961 [“Act”] by the Principal Commissioner. This since in those cases tax liability could not have been quantified. We consequently negative the preliminary objection and hold that the appeal would be maintainable. 3. Prima facie, we find merit in the appeals bearing in mind the provisions contained in Section 80P(2)(d) of the Act and which would 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 27/03/2026 at 12:31:53

exempt only such part of the income earned by way of interest or dividends if it flowed from investments made in another cooperative society. 4. We, consequently, admit the instant appeals on the following questions of law: - A. Whether the Income Tax Appellate Tribunal [“Tribunal”] is justified in the eyes of law in passing the impugned order, setting aside the order passed by the Commissioner of income Tax under Section 263 of the Act? B. Whether the Tribunal is justified in the eyes of law in directing the Assessing Officer to all the claim of deduction made under Section 80P(2)(a)(i) of the Act?” 5. List again on 01.10.2024.

YASHWANT VARMA, J.

RAVINDER DUDEJA, J. JULY 10, 2024/neha

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 27/03/2026 at 12:31:53

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →