PR. COMMISSIONER OF INCOME TAX -7 vs. M/S RATROI MAA TRADING PVT. LTD.

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ITA - 15 / 2024HC Delhi05 January 20242 pages
For Petitioner: PUNEET RAI
AI SummaryPartly Allowed

What did the High Court hold?

The High Court admitted the appeal, framing a substantial question of law concerning the perversity of the ITAT's finding that no notice of enhancement under Section 251 of the Income Tax Act, 1961, was issued to the assessee. The Court noted that the respondent (assessee) did not appear despite advance notice. Consequently, the Court directed the appellant (revenue) to take steps for service upon the respondent through all permissible modes, including approved courier service. The appeal is scheduled to be called again on 08.05.2024. No decision on the merits of the substantial question of law has been rendered at this stage. The operative direction is to facilitate service on the respondent and relist the matter.

What were the facts?

The appeal is filed by the Principal Commissioner of Income Tax -7 against an order passed by the Income Tax Appellate Tribunal (ITAT). The assessee is M/s Ratroi Maa Trading Pvt. Ltd. The assessment year(s) are not specified in the provided text. The core of the dispute revolves around whether the ITAT correctly held that no notice of enhancement, as contemplated under Section 251 of the Income Tax Act, 1961, was issued to the assessee. The ITAT's finding on this procedural aspect is challenged by the revenue as perverse. The respondent (assessee) has not appeared before the High Court despite advance notice.

What were the issues?

1. Whether the judgment of the Income Tax Appellate Tribunal is perverse in holding that no notice of enhancement under Section 251 of the Income Tax Act, 1961, was issued to the assessee? (Question of law/mixed law and fact, turning on Section 251 of the Income Tax Act, 1961). Assessee's contentions: Not recorded in the provided text. Revenue's contentions: The revenue argues that the ITAT's finding that no notice of enhancement was issued is perverse. The revenue relies on the provisions of Section 251 of the Income Tax Act, 1961, which deals with the powers of the Commissioner (Appeals) to enhance, confirm, or reduce the assessment. The revenue implicitly contends that the ITAT erred in its interpretation or application of this section, leading to an incorrect conclusion regarding the issuance of the notice.

Which sections of the Income-tax Act were involved?

Section 251

AI-generated summary — verify with the full judgment below

$~31 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 15/2024 & CM APPL. 624/2024 (Delay)

PR. COMMISSIONER OF INCOME TAX -7 ..... Appellant Through: Mr. Puneet Rai, Sr. Standing Counsel along with Mr. Ashvini Kumar and Mr. Rishabh Nangia, Standing Counsels.

versus

M/S RATROI MAA TRADING PVT. LTD. ..... Respondent

Through: None.

CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE GIRISH KATHPALIA

O R D E R %

05.01.2024

CM APPL. 623/2024 (Exemption) Allowed, subject to all just exceptions. Application is disposed of. ITA 15/2024 & CM APPL. 624/2024 (Delay) 1. Admit. Having heard learned counsel for the appellant, we find that the appeal raises the following substantial questions of law:- a. Whether the judgment of the Income Tax Appellate Tribunal is not rendered perverse insofar as it proceeds to record that no notice of enhancement as contemplated under Section 251 of the Income Tax Act, 1961 had been issued to the assessee? 2. Although the respondent is stated to have been placed on advance notice, none has appeared on its behalf when the matter was 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 13:31:40

called. Consequently, let learned counsel appearing for the appellant take steps for service upon the respondent through all permissible modes including via approved courier service. 3. Let the appeal be called again on 08.05.2024.

YASHWANT VARMA, J.

GIRISH KATHPALIA, J. JANUARY 05, 2024/ RW 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 13:31:40

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