COMMISSIONER OF INCOME TAX-1 vs. M/S ASHIAN NEEDLES PVT. LTD.

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ITA/1151/2017HC DelhiDLHC01446371201718 December 2017Bench: CASES PERTAINING TO SPL.DIVISION BENCHES2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises for determination. The Court reasoned that the decision of the Income Tax Appellate Tribunal (ITAT) had turned on facts which were not controverted by the Revenue. Consequently, the appeal was dismissed. The dismissal was based on two grounds: the extraordinary delay of 698 days in re-filing the appeal, for which the reason provided was unconvincing, and the lack of a substantial question of law on merits. The operative direction was the dismissal of the appeal.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-1 (appellant) against M/s Ashian Needles Pvt. Ltd. (respondent). The appeal challenges a reassessment notice. The High Court noted an extraordinary delay of 698 days in filing the appeal, with the reason provided being unconvincing. The Court also observed that the reassessment notice was identical to one that led to a previous appeal, ITA 226/2015, which was decided by the same Court. In that prior appeal, the Court had dismissed the Revenue's appeal, citing both delay and the merits of the case.

What were the issues?

1. Whether a substantial question of law arises for determination, given the ITAT's decision turned on facts that were not controverted. (Question of law) Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue argued that a substantial question of law arose, necessitating the appeal. However, the judgment does not detail specific arguments made by the Revenue beyond the general assertion of a substantial question of law. The Revenue relied on the fact that the ITAT's decision was based on facts not controverted.

AI-generated summary — verify with the full judgment below

ITA 1151/2017 Pa g e 1 $~43 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1151/2017 COMMISSIONER OF INCOME TAX-1 ..... Appellant Through Mr. Sanjay Kumar with Mr. Rahul Chaudhary, Advocates. versus M/S ASHIAN NEEDLES PVT. LTD. ..... Respondent Through None. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A.K. CHAWLA O R D E R % 18.12.2017 CM No.45927/2017 (exemption) Exemption is allowed subject to all just exceptions. CM No.45926/2017 (for condonation of delay) We notice that there is an extraordinary delay of 698 days. The reason given for the delay is entirely unconvincing. The application is, therefore, dismissed. ITA 1151/2017 This Court notices the reassessment notice. It has been pointed out that the reassessment notice, which is the subject matter of this appeal, was identical and culminated into a common order of the ITAT, which was subject to an appeal previously in ITA 226/2015 (Commissioner of Income Tax vs. Ashian Needles Pvt. Ltd.). The Court had rejected the appeal holding as follows:-

ITA 1151/2017 Pa g e 2 “7.The decisionofthe ITA T having turned onfacts,which have notbeencontroverted,nosubstantial questionof law arisesfordeterm ination. 8. C onsequently,the appeal is dism issed both on the ground ofthe delay inre-filing the appeal as well as onm erits.” For the same reasons, the Court also holds that there is no substantial question of law. The appeal is, therefore, dismissed. S. RAVINDRA BHAT, J A.K. CHAWLA, J DECEMBER 18, 2017 st

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