CIT vs. MERCANTILE CAPITAL & FINANCIAL SERVICES PVT LTD

ITA - 1271 / 2011HC Delhi19 December 20111 pages

For Petitioner: SANJEEV SABHARWAL

AI SummaryRemanded

What did the High Court hold?

The High Court of Delhi was not inclined to entertain the appeals filed by the revenue under Section 260A of the Income Tax Act, 1961. This decision was based on a prior judgment of the same court in the case of Maxopp Investment Ltd. v. CIT, New Delhi (ITA No.687/2009 dated 18.11.2011). The Tribunal had passed an order of remand. The High Court directed that while deciding the matter, the Assessing Officer should take into consideration the observations and ratio of the decision in the Maxopp Investment Ltd. case. Liberty was granted to the parties to approach the High Court again if they faced any difficulties. The appeals were disposed of on this basis.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (CIT) against the orders passed by the Income Tax Appellate Tribunal (ITAT). The ITAT had passed orders of remand in these cases. The respondent in ITA 1271/2011 and ITA 1272/2011 was Mercantile Capital and Financial Services Pvt Ltd, while in ITA 1275/2011, it was Mohan Overseas Pvt Ltd. The appeals were filed under Section 260A of the Income Tax Act, 1961. The High Court of Delhi was hearing these appeals. The revenue was represented by None, and the respondents were represented by Mr. Sanjeev Sabharwal, Sr. Standing Counsel.

What were the issues?

1. Whether the High Court should entertain the present appeals by the revenue under Section 260A of the Income Tax Act, 1961, given the ITAT's order of remand? The revenue's contention was not recorded as they were represented by 'None'. The respondent's contention, as implied by the court's decision, was likely that the ITAT's order of remand was appropriate and that the appeals by the revenue were not maintainable or should not be entertained. The respondent relied on the decision of the Delhi High Court in the case of Maxopp Investment Ltd. v. CIT, New Delhi.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . . . ITA 1271/2011 . . . CIT ..... Appellant . Through: None . . . versus . . . . . MERCANTILE CAPITAL and FINANCIAL . SERVICES PVT LTD ..... Respondent . Through: Mr. Sanjeev Sabharwal, Sr. Standing Counsel . . . ITA 1272/2011 . . . CIT ..... Appellant . Through: None . . . versus . . . MERCANTILE CAPITAL and FINANCIAL . SERVICES PVT LTD ..... Respondent . Through: Mr. Sanjeev Sabharwal, Sr.Standing Counsel . . . ITA 1275/2011 . . . CIT ..... Appellant . Through: None . . . versus . . . . . MOHAN OVERSEAS PVT LTD ..... Respondent . Through: Mr. Sanjeev Sabharwal, Sr.Standing Counsel . CORAM: . HON'BLE MR. JUSTICE SANJIV KHANNA . HON'BLE MR. JUSTICE R.V.EASWAR . . . . . O R D E R . 19.12.2011 . . . . We are not inclined to entertain the present appeal by revenue under Section 260A of the Income Tax Act, 1961 in view of the decision of the Delhi High Court in the case of Maxopp Investment Ltd. v. CIT, New Delhi in ITA No.687/2009 dated 18.11.2011. The Tribunal has passed an order of remand. While deciding the matter the Assessing Officer will take into consideration the observations and ratio of the decision of the Delhi High Court in the case of Maxopp Investment Ltd. v. CIT, New Delhi (supra). Liberty is granted to the parties to approach this Court in case they face any difficulty. . The appeal is disposed of. . . . . . . . SANJIV KHANNA, J. . . . . . . . R.V.EASWAR, J. . DECEMBER 19, 2011 . mm . . . 49 . $ .

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