THE PR. COMMISSIONER OF INCOME TAX -15 vs. SH. MUKESH MITTAL

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ITA - 12 / 2025HC Delhi24 January 20252 pages
For Petitioner: RUCHIR BHATIA
AI SummaryPartly Allowed

What did the High Court hold?

The Delhi High Court admitted the appeal for hearing and issued notice to the respondent. The Court condoned the delay of 930 days in refiling the appeal. The substantial question of law framed by the Court pertains to whether the ITAT erred in deleting the addition of Rs. 5,94,89,044/- made by the AO on account of disallowance of Long Term Capital Gain, by failing to appreciate that the transaction was a colorable device for tax avoidance. The Court has not yet decided on the merits of the appeal. The respondent was not represented before the Court.

What were the facts?

The Principal Commissioner of Income Tax-15 (Revenue) filed an appeal before the Delhi High Court against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed with a delay of 930 days in refiling, which was condoned by the High Court. The ITAT had deleted an addition of Rs. 5,94,89,044/- made by the Assessing Officer (AO) on account of disallowance of 'Long Term Capital Gain'. The Revenue's contention is that the ITAT failed to appreciate that the transaction was a colorable device for tax avoidance. The respondent, Sh. Mukesh Mittal (Assessee), was not represented before the High Court.

What were the issues?

1. Whether the learned ITAT erred in deleting the addition of Rs. 5,94,89,044/- made by the Assessing Officer on account of disallowance of 'Long Term Capital Gain', failing to note and appreciate that the transaction was a colorable device for avoidance of tax? (Question of law) Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue contends that the ITAT failed to appreciate that the transaction in question was a colorable device employed for the purpose of avoiding tax liability. The Revenue argues that the ITAT's deletion of the addition made by the AO was erroneous on this ground.

AI-generated summary — verify with the full judgment below

$~30 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 12/2025 & CM APPL. 4440/2025

THE PR. COMMISSIONER OF INCOME TAX -15 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC and Mr. Abhishek Anand, Advocate.

versus

SH. MUKESH MITTAL

.....Respondent

Through: None.

CORAM:

HON'BLE THE CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

24.01.2025 CM APPL. 4440/2025 1. Cause explained is sufficient. Accordingly, the application is allowed. Delay of 930 days in refiling the appeal is condoned. 2. The application stands disposed of.

ITA 12/2025 3. The present appeal raises the following substantial question of law, which reads as under:- “2.1 Whether the learned ITAT in deleting the addition of Rs.5,94,89,044/- made by the Assessing officer on account of disallowance of 'Long Term Capital Gain' failing to note and appreciate that the transaction was a colorable device for avoidance of tax?”

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 12:50:13

4.

Issue notice to the respondent, returnable on 27.03.2025.

DEVENDRA KUMAR UPADHYAYA, CJ

TUSHAR RAO GEDELA, J JANUARY 24, 2025/mk 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 12:50:13

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