THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -1 vs. SHAHI EXPORTS PVT. LTD.

$~84 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 174/2023 & CM Appl.13856/2023

THE PR. COMMISSIONER OF INCOME TAX -CENTRAL -1 ..... Appellant Through: Mr Ruchir Bhatia, Sr. Standing Counsel with Ms Priya Sarkar, Jr. Standing Counsel.

versus

SHAHI EXPORTS PVT. LTD..

.... Respondent

Through: None.

CORAM:

HON'BLE MR JUSTICE RAJIV SHAKDHER

HON'BLE MS JUSTICE TARA VITASTA GANJU

O R D E R %

23.03.2023 [Physical Hearing/Hybrid Hearing (as per request)] 1. Mr Ruchir Bhatia, learned senior standing counsel who appears on behalf of the appellant/revenue, says that this appeal is confined to Assessment Year (AY) 2010-11. 2. To be noted, two the assessment orders of even date, i.e., 30.03.2015, under Section 153A read with Section 153C & 143(3) of the Income Tax Act, 1961 [in short, “the Act”] were passed vis-à-vis two AYs, i.e., 2008-09 and 2010-11. 3. The record shows that the search action under Section 132 of the Act was carried out against the respondent/assessee, i.e., Shahi Exports Pvt. Ltd. (SEPL) on 16.01.2013. 3.1 Record also discloses that, prior to the search action carried out against the respondent/assessee, i.e., SEPL, another entity going by the name ITA 174/2023

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Sarla Fabrics Pvt. Ltd. amalgamated with the respondent/assessee, i.e., SEPL, which received the imprimatur of this court vide judgement dated 25.10.2010, albeit with effect from 31.03.2010. 4. Mr Bhatia concedes that no incriminating material was found in the search action qua the respondent/assessee, i.e., SEPL. 4.1 It is Mr Bhatia’s contention that although no incriminating material was found, the completed assessment vis-à-vis the AY in issue, made against the respondent/assessee, i.e., SEPL, via the assessment order dated 30.03.2013, would continue to obtain. Therefore, it is Mr Bhatia’s contention that the view taken by the Income Tax Appellate Tribunal [in short, “the Tribunal”] via the impugned order dated 24.03.2021 is not sustainable. 5. We may note that the record also discloses that the Principal Commissioner of Income Tax [in short, “PCIT”] had passed an order under Section 263 of the Act, whereby the assessment order dated 30.03.2015 was set aside, inter alia, on the ground that after the amalgamation of Sarla Fabrics Pvt. Ltd. with the respondent/assessee, i.e., SEPL, whatever additions had been made in the hands of Sarla Fabrics Pvt. Ltd, were to be assessed in the hands of the respondent/assessee, i.e., SEPL. 6. The order under Section 263 was passed by the PCIT on 21.03.2017. It is this order which was set aside by the Tribunal. 7. Issue notice to the respondent/assessee, i.e., SEPL via all modes, including email. 8. List the matter on 28.08.2023. 9. In the meanwhile, counsel for the appellant/revenue will file written ITA 174/2023

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submissions not exceeding three pages, at least five days before the next date of hearing. 10. Registry will dispatch notice to the respondent/assessee, i.e., SEPL accompanied with a copy of the order passed today. In case the notice is served to the respondent/assessee, i.e., SEPL in time, it shall also file written submissions in the matter as directed above.

RAJIV SHAKDHER, J

TARA VITASTA GANJU, J

MARCH 23, 2023/r

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ITA 174/2023

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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 14:02:50