Bombay High Court
THE PRINCIPAL COMMISSIONER OF INCOME TAX-3, MUMBAIversusDOSHI HOLDINGS PVT. LTD. THROUGH MS. KANAK JANI, RESOLUTION PROFESSIONAL
- Decided
- Disposal
- DISPOSED OFF
Holding
Since there were no outstanding dues and no live issue, the appeal was disposed.
Summary
The Principal Commissioner of Income Tax-3, Mumbai appealed against Doshi Holdings Pvt. Ltd. concerning a tax demand of Rs 1,27,77,150. The respondent argued that the appeal was not maintainable under Circular No. 09/2024 of the CBDT because the tax effect was low, and further contended that the corporate resolution plan had been finalized, leaving no dues payable. The appellant opposed the withdrawal, asserting that the circular’s exceptions might apply, but also acknowledged that no dues remained due to the resolution plan. The Court examined whether a live issue existed for adjudication given the absence of any outstanding liability. Concluding that there was no live issue, the Court disposed of the appeals.
Issues considered
- Whether an appeal is maintainable when the tax effect is low under CBDT Circular No. 09/2024.
- Whether the finalization of a corporate resolution plan extinguishes the tax liability and renders the appeal moot.
Subjects
- Income Tax
- Appeal
- Low Tax Effect
- CBDT Circular 09/2024
- Resolution Plan
- No Live Issue
- Tax Liability
Judgment
Digitally signed
by MAYUR
MAYUR KONDIRAM
KONDIRAM ADANE
ADANE Date:
2026.08.24
19-ITXA-1163-2019 (OS).DOC
11:33:03 +0530
Mayur
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL(IT) NO. 1163 OF 2019
WITH
IA(L)/19476/2025
IN
ITXA/1163/2019
The Principal Commissioner Of Income Tax-3, …Appellant
Mumbai
Versus
Doshi Holdings Pvt. Ltd. Through Ms. Kanak …Respondents
Jani, Resolution Professional
Mr. P.C. Chhotaray for the Appellant.
Mr Prathamesh M. Nirkhe, i/b. Asahi Legal for Respondent.
CORAM: SUMAN SHYAM &
ADVAIT M. SETHNA, JJ.
DATED: 17th AUGUST 2026.
PC:-
1. Mr. Prathamesh Nirkhe, learned counsel for the Respondent,
submits that the amount of tax involved in these proceedings is Rs.
1,27,77,150/-, and in view of Circular No. 09/2024 of the Central
Board of Direct Taxes dated 17th September 2024, issued by the
Government of India, Ministry of Finance, Department of Revenue,
Central Board of Direct Taxes, this appeal would not be
maintainable only on the ground of low tax effect. However, it is
also the submission of the learned counsel for the Respondent that
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19-ITXA-1163-2019 (OS).DOC
since the corporate resolution plan pertaining to the Respondent
has already been finalized and the same has been implemented,
nothing survives in this appeal since there are no dues from the
Respondent payable to the Appellant at this point of time.
2. Responding to the above, Mr. Chhotaray, learned
Department counsel, has opposed the submission suggesting
withdrawal of the appeal on the ground of low tax effect as the
same would fall within the exceptions carved out in the CBDT
Circulars. However, he submits that, based on instructions obtained
from the official, it can be stated that there are no dues from the
Respondent to the Appellant at this stage, in view of the
finalization of the resolution plan. If that be so, we are of the view
that there is no live issue for adjudication by this Court in the
present matters.
3. The appeals are accordingly, disposed of.
(ADVAIT M. SETHNA, J.) (SUMAN SHYAM, J.)
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