K.S. COMMODITIES PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX,CIRCLE 13(1),DELHI, DELHI

ITTPA 99/DEL/2026Status: DisposedITAT Delhi20 May 20263 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that in light of the factual matrix presented, where the Assessing Officer had allowed the rectification application, deleted the addition to the appellant's income in its entirety, accepted the income declared in the return, and reduced the consequent tax demand to NIL, both the appeal filed by the assessee and the stay application had become infructuous. Therefore, the Tribunal dismissed both the appeal and the stay application as infructuous. The ratio decidendi is that when the underlying issue leading to the appeal is resolved by the lower authority in favor of the assessee, the appellate proceedings become moot.

What were the facts?

The assessee, K.S. Commodities Private Limited, filed an appeal before the Income Tax Appellate Tribunal (ITAT) for Assessment Year 2022-23. The appeal was heard along with a stay application. The ITAT had previously, by an order dated 27.02.2026, directed the Assessing Officer (AO) to decide a pending rectification application. The learned Authorized Representative (AR) informed the Tribunal that the AO had allowed the rectification application on 11.05.2026. Consequently, the addition made to the appellant's income was deleted entirely, and the income declared in the return of income was accepted. The tax demand previously raised against the appellant was reduced to NIL.

What were the issues?

1. Whether the appeal and stay application have become infructuous in light of the AO's order allowing the rectification application. (Question of fact and law) Assessee's Contention: The assessee, through its AR, submitted that the rectification application filed with the AO has been allowed, leading to the deletion of additions and a reduction of the tax demand to NIL. This renders the appeal and stay application infructuous. Revenue's Contention: The judgment records no specific contention from the revenue regarding the appeal or stay application becoming infructuous. The revenue was represented by Ms. Harpreet Kaur Hansra, Sr. DR.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “H” BENCH, DELHI

Before: SHRI S RIFAUR RAHMAN & SHRI ANUBHAV SHARMA

For Appellant: Ms. Ananya Kapoor, Adv

For Respondent: Ms. Harpreet Kaur Hansra, Sr

Hearing: 15.05.2026Pronounced: 20.05.2026

P a g e | 1] ITA No. 99/Del/2026 SA No. 123/Del/2026 K.S. Commodities Pvt. ltd. (AY: 2022-23) IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, DELHI BEFORE SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER & SHRI ANUBHAV SHARMA, JUDICIAL MEMBER IT(TP)A. No. 99/Del/2026 (Assessment Year: 2022-23) K.S. Commodities Private Vs. DCIT, Circle 13(1) Limited, 719, CR Building, I.P. Estate Indraprakash Building, 21, New Delhi – 110002 Barakhamba Road, New Delhi – 110001 �थायीलेखासं./जीआइआरसं./PAN/GIR No: AABCK2584P Appellant .. Respondent & S.A. No.123/Del/2026 (Assessment Year: 2022-23)

K.S. Commodities Private Vs. DCIT, Circle 13(1) Limited, 719, CR Building, I.P. Estate Indraprakash Building, 21, New Delhi – 110002 Barakhamba Road, New Delhi – 110001 �थायीलेखासं./जीआइआरसं./PAN/GIR No: AABCK2584P Appellant .. Respondent

Appellant by : Ms. Ananya Kapoor, Adv. Respondent by : Ms. Harpreet Kaur Hansra, Sr. DR Date of Hearing 15.05.2026 Date of Pronouncement 20.05.2026

P a g e | 2] ITA No. 99/Del/2026 SA No. 123/Del/2026 K.S. Commodities Pvt. ltd. (AY: 2022-23) O R D E R PER ANUBHAV SHARMA, JM:

The appeal was taken up today along with stay application and on

hearing both sides we find that by order dated 27.02.2026 the Bench had

directed the assessing officer to decide the pending rectification application

and ld. AR has apprised us that rectification application has been allowed by

AO vide order dated 11.05.2026 wherein the addition to the appellant’s

income has been deleted in entirety and the income as declared by the

Appellant in the return of income has been accepted. The consequent tax

demand raised earlier on the appellant has also been reduced to NIL.

In light of the aforesaid factual matrix the appeal of the assessee as well

as stay application have become infructuous and dismissed as infructuous.

Order pronounced in the open court on 20.05.2026

Sd/- Sd/- (S. Rifaur Rahman) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 20.05.2026 Rohit, Sr. PS

P a g e | 3] ITA No. 99/Del/2026 SA No. 123/Del/2026 K.S. Commodities Pvt. ltd. (AY: 2022-23) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

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