Pr Commissioner Of Income Tax Central 2 v. Veritas India Ltd

5-ITXA-39-2024.DOCX Amol

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 39 OF 2024 Pr Commissioner of Income Tax Central -2 ...Appellant

Versus

Veritas India Ltd

...Respondent

______________________________________________________ Mr Vipul Bajpayee, for the Appellant.

______________________________________________________

CORAM

M.S. Sonak & Advait M. Sethna, JJ.

DATED:

15 October 2025 PC:- 1.

Heard Mr Bajpayee for the Appellant.

2.

The tax effect in this matter is admittedly less than Rs. 2 Crores as stated in paragraph 13 of the Appeal memo. Mr Digitally signed by AMOL PREMNATH JADHAV Date:

2025.10.16 11:39:48 +0530 AMOL PREMNATH JADHAV Bajpayee however submits that this Appeal would fall within the exceptions provided in Clause 3.1(l)(ii) of the Circular No. 5 of 2024 dated 15 March 2024. He submits that this is because a transfer pricing issue was involved in this matter. 3.

Having regard to Clause 3.1(l), we are not too sure whether the exception would include all cases of transfer prices. However, even assuming this is so, it is apparent that this exception was carved out by Circular dated 5/2024 which entered force on 15 March 2024. This Appeal was instituted on 2 November 2023 i.e., before the exception was carved out.

5-ITXA-39-2024.DOCX 4.

A Coordinate Bench of this Court in the case of CIT Vs V M Salgaoncar and Brothers Pvt Ltd1, in the specific context of Clause 3.1(l) of Circular No. 5 of 2024 dated 15 March 2024 upon which Mr Bajpayee now relies, has held that this exception would apply only to Appeals filed after 15 March 2024.

5.

Therefore, by following the reasoning in V M Salgaoncar and Brothers Pvt Ltd (supra) and without going into the question whether every matter which involves a transfer pricing issue would fall within the exception under Clause 3.1(l), we dispose of this Appeal on the ground of low tax effect. The question of law raised in this Appeal is however kept open.

(Advait M. Sethna, J) (M.S. Sonak, J) 169 taxmann.com 597