PR. COMMISSIONER OF INCOME TAX -FARIDABAD vs. GREEN GEM ESTATES PVT. LTD.

ITA - 365 / 2024HC Delhi22 July 20242 pages

For Petitioner: RUCHIR BHATIA

AI SummaryPartly Allowed

What did the High Court hold?

The High Court took note of the Tribunal's finding that since the CIT(A) had held the reopening of assessment to be unsustainable, quashing the assessment order, and the Revenue had not raised this issue before the Tribunal, the CIT(A)'s findings had attained finality. Consequently, the Tribunal found it unnecessary to dwell into the merits of the case. The High Court, in its order, granted the appellant (Revenue) liberty to file the appeal paper book within three weeks, in relation to Ground (g). The matter was then listed for further hearing. The High Court did not decide on the merits of the case or the substantive tax dispute, but rather on a procedural aspect concerning the filing of documents.

What were the facts?

The appeal is filed by the Pr. Commissioner of Income Tax – Faridabad (Revenue) against an order passed by the Income Tax Appellate Tribunal (Tribunal). The Tribunal, in its order, noted that the CIT(A) had held the reopening of assessment to be unsustainable, thereby quashing the assessment order. The Revenue had not raised this issue before the Tribunal. The Tribunal, therefore, did not delve into the merits of the case, as the assessment order had been quashed. The Revenue, through its counsel, sought liberty to bring on record the appeal paper book filed before the Tribunal, specifically referring to Ground (g). The High Court granted this liberty and listed the matter for further hearing.

What were the issues?

1. Whether the Income Tax Appellate Tribunal erred in not adjudicating the merits of the assessment when the CIT(A) had quashed the assessment order on the ground of unsustainable reopening, and the Revenue had not challenged this finding before the Tribunal? The Revenue's contention, as indicated by their prayer for liberty to file the paper book and reference to Ground (g), suggests an intention to argue that the Tribunal should have considered the merits of the case, despite the CIT(A)'s order quashing the assessment. The Revenue's argument, though not explicitly detailed in the provided text, likely revolves around the necessity of a final determination on the substantive tax liability, even if the initial assessment was flawed. The Revenue appears to be seeking an opportunity to present its case on the merits. The Respondent (assessee) has not recorded any arguments in the provided text.

AI-generated summary — verify with the full judgment below

$~80 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 365/2024

PR. COMMISSIONER OF INCOME TAX – FARIDABAD

.....Appellant

Through: Mr. Ruchir Bhatia, SSC.

versus

GREEN GEM ESTATES PVT. LTD. .....Respondent

Through: Mr. Dushyant Agarwal, Adv.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE RAVINDER DUDEJA

O R D E R %

22.07.2024 1. We take note of the following finding which has come to be returned by the Income Tax Appellate Tribunal [“Tribunal”] in the order impugned before us:- “10. In our considered opinion once the CIT(A) has held that reopening of the assessment is not sustainable thereby quashing the assessment order and the revenue has not raised this issue before us the findings of the CIT(A) have attained finality. Since the assessment order has been quashed we do not find it necessary to dwell into the merits of the case.”

Learned counsel for the appellant, however, draws our attention to Ground (g), and consequently, prays for liberty being accorded to bring on record the appeal paper book which was filed before the Tribunal. 3. Let the aforesaid be done within a period of three weeks from today.

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 14:15:59

List again on 03.09.2024.

YASHWANT VARMA, J.

RAVINDER DUDEJA, J. JULY 22, 2024/neha

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