Maintainability of tax appeal given negligible tax effect; Department withdrew appeal under Circular No.9/2024, appeal dismissed

Whether the appeal was maintainable in view of low tax effect: the Department invoked Circular No. 9 of 2024 and sought withdrawal of the appeal for the assessment year, asserting negligible tax effect. The HC recorded that submission and, on that basis, dismissed the tax appeal as withdrawn. Consequence: the appeal is dismissed as withdrawn and no adjudication on the substantive question of law was made; the legal question is left open for determination in an appropriate matter.

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Issues: Whether the tax appeal relating to assessment year 2005-06 is to be pursued by the Income-Tax Department.

Analysis:

Conclusion: The appeal in respect of assessment year 2005-06 is dismissed as withdrawn on account of the Department's election not to pursue the appeal.

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