Bombay High Court
THE PRINCIPAL COMMISSIONER OF INCOME TAX-3versusDOSHI HOLDINGS PVT.LTD. THROUGH KANAK JANI, RESOLUTION PROFESSIONAL
- Decided
- Disposal
- DISPOSED OFF
Holding
The appeal is disposed as there is no live issue for adjudication.
Summary
The Principal Commissioner of Income Tax-3, Mumbai appealed against Doshi Holdings Pvt. Ltd., represented by a resolution professional, challenging a tax demand of Rs. 1,80,76,328/-. The respondent argued that under Circular No. 09/2024 the appeal was not maintainable due to the low tax effect and that the corporate resolution plan had already been finalized, leaving no dues payable. The appellant’s counsel contested the low‑tax ground but acknowledged, based on official instructions, that no dues remained following the resolution plan. The Court observed that, irrespective of the reason—low tax effect or finalisation of the plan—there was no live issue for adjudication. Consequently, the appeal was disposed, with the Court reserving the question of law for future reference.
Issues considered
- Whether an income‑tax appeal is maintainable when the tax effect is low as per Circular No. 09/2024
- Whether the finalisation of a corporate resolution plan extinguishes the tax liability and renders the appeal moot
Subjects
- income tax
- appeal
- low tax effect
- Circular No. 09/2024
- corporate resolution plan
- mootness
- jurisdiction
Judgment
Digitally signed
by MAYUR
MAYUR KONDIRAM 19-ITXA-2745-2019 (OS).DOC
KONDIRAM ADANE
ADANE Date:
2026.08.24
14:17:17 +0530
Mayur
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL(IT) NO. 2745 OF 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.
1,80,76,328/-, 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
since the corporate resolution plan pertaining to the Respondent-
Company has already been finalized and the same has been
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19-ITXA-2745-2019 (OS).DOC
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. However,
he submits based on instructions obtained from the official, that 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, whether it is on account of the low tax effect or
due to finalisation of the resolution plan, we are of the view that
there is no live issue for adjudication by this Court in the present
matter.
3. The appeal is therefore, disposed of.
4. The question of law is kept open.
(ADVAIT M. SETHNA, J.) (SUMAN SHYAM, J.)
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