THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1, NEW DELHI vs. ERNST AND YOUNG U.S. LLP

ITA - 423 / 2025HC Delhi16 September 20252 pages

For Petitioner: PUNEET RAI

AI SummaryRemanded

What did the High Court hold?

The High Court, in its order dated September 16, 2025, allowed the exemption applications and condoned the delays in filing and re-filing the appeals by the Revenue. The Court found the reasons stated in the applications for condonation to be sufficient. The substantive issues of the appeals were not decided. The matter was adjourned to September 23, 2025, at the request of the Assessee's counsel, who sought time to file certain judgments. Therefore, no finding has been reached on the merits of the appeals, and no operative directions regarding the tax dispute itself were issued.

What were the facts?

The Commissioner of Income Tax (International Taxation)-1, New Delhi (Revenue) has filed two appeals, ITA 423/2025 and ITA 424/2025, against the respondent, Ernst and Young U.S. LLP (Assessee). The appeals are before the Delhi High Court. The Revenue sought condonation of delay in filing the appeals. The Assessee appeared through their counsel and requested time to file certain judgments. The Court allowed the exemption applications and condoned the delays in filing and re-filing the appeals.

What were the issues?

1. Whether the delay in filing and re-filing the appeals by the Revenue should be condoned, turning on the principles of condonation of delay. The Revenue sought condonation of delay in filing and re-filing the appeals. The Assessee did not record any specific arguments against condonation but sought time to file judgments. 2. Whether the appeals themselves have merit, which is yet to be decided as the matter was adjourned for further arguments. The Assessee's counsel sought time to file judgments, indicating a need for further deliberation on the substantive issues of the appeals.

AI-generated summary — verify with the full judgment below

$~85 & 86 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 423/2025 + ITA 424/2025 THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1, NEW DELHI .....Appellant Through: Mr. Puneet Rai, SSC with Mr. Rishabh Nangia, JSC and Mr. Ashvini Kumar, JSC. versus ERNST AND YOUNG U.S. LLP .....Respondent Through: Mr. S. Ganesh, Sr. Adv. with Ms. Ananya Kapoor, Adv. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR O R D E R % 16.09.2025 CM APPL. 58480/2025 in ITA 423/2025 (Exemption) CM APPL. 58483/2025 in ITA 424/2025 (Exemption) 1. Exemption is allowed, subject to all just exceptions. 2. The application stands disposed of. CM APPL. 58481/2025 in ITA 423/2025 (condonation of delay of 21 days in filing) CM APPL. 58482/2025 in ITA 423/2025 (condonation of delay of 606 days in re-filing) CM APPL. 58484/2025 in ITA 424/2025 (condonation of delay of 238 days in re-filing) 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 12:33:03

For the reasons stated in the applications, the delay in re-filing and filing the appeals are condoned. 4. The applications are disposed of. ITA 423/2025 ITA 424/2025 5. Mr. S. Ganesh, Senior Advocate along with Ms. Ananya Kapoor appears for the respondent on advance notice and seeks time to file certain judgments. 6. At his request, re-notify on 23.09.2025. V. KAMESWAR RAO, J VINOD KUMAR, J SEPTEMBER 16, 2025/sr 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 12:33:03

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