THE PR. COMMISSIONER OF INCOME TAX -1 vs. DIAGEO DISTILLERIES PVT. LTD.

ITA - 406 / 2022HC Delhi17 October 20222 pages

For Petitioner: RUCHIR BHATIA

AI SummaryWithdrawn

What did the High Court hold?

The Delhi High Court held that the present appeal was infructuous. This decision was based on the submission by the assessee's counsel that the matter had been resolved under the Direct Tax Vivad Se Vishwas Act, 2020, and Form-5 had been issued to the assessee. The court took on record the photocopies of Forms 1, 2, 3, 4, and 5, which substantiated the claim of settlement. Consequently, the appeal was disposed of as infructuous, without delving into the merits of the original dispute, which was otherwise covered by the precedent in CIT vs. Kabul Chawla. No specific finding was made on the ITAT's order itself, as the appeal's pendency was mooted by the settlement.

What were the facts?

The Principal Commissioner of Income Tax - 1 (Revenue) filed an appeal before the Delhi High Court challenging an order dated 27th May, 2020, passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.5164/Del/2015 for the Assessment Year 2008-09. The assessee is Diageo Distilleries Pvt. Ltd. The Revenue's counsel acknowledged that the issue in the appeal was covered by a previous judgment of the High Court in CIT vs. Kabul Chawla. However, the assessee's counsel stated that the matter had been resolved under the Direct Tax Vivad Se Vishwas Act, 2020, and Form-5 had been issued to the assessee. Photocopies of Forms 1, 2, 3, 4, and 5 were submitted and taken on record.

What were the issues?

1. Whether the appeal filed by the Revenue is infructuous in light of the settlement under the Direct Tax Vivad Se Vishwas Act, 2020? (Question of law). The Revenue contended that the issue in the appeal was covered by the High Court's judgment in CIT vs. Kabul Chawla. The Assessee argued that the dispute had been resolved under the Direct Tax Vivad Se Vishwas Act, 2020, and Form-5 had been issued, rendering the appeal infructuous. The Assessee relied on the issuance of Form-5 as proof of settlement.

AI-generated summary — verify with the full judgment below

$~44 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 406/2022 THE PR. COMMISSIONER OF INCOME TAX -1 ..... Appellant Through: Mr.Ruchir Bhatia, Sr.Standing Counsel for the Revenue with Ms.Mansie Jain, Advocate. versus DIAGEO DISTILLERIES PVT. LTD. ..... Respondent Through: Mr.Nikhil Ranjan with Mr.Kamal Arya, Advocates. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 17.10.2022 Present income tax appeal has been filed challenging the order dated 27th May, 2020 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No.5164/Del/2015 for the Assessment Year 2008-09. Though the issue raised in the present appeal is covered by the judgment of this Court passed in CIT vs. Kabul Chawla, 380 ITR 573 (Del), yet learned counsel for the respondent states that the matter has been resolved under the Direct Tax Vivad Se Vishwas Act, 2020 and Form-5 has been issued to the respondent/assessee under Rule-7 of the Direct Tax Vivad Se Vishwas Rules, 2020. He has handed over photocopies of Forms-1, 2, 3, 4 & 5. The same are taken on record. 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 14:24:33

In view of the aforesaid documents, present appeal is disposed of as infructuous. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J OCTOBER 17, 2022 KA 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 14:24:33

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