DIRECTOR OF INCOME TAX vs. QUALCOMM INCORPORATED NEW DELHI

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ITA/6/2015HC DelhiDLHC01228093201414 January 2015Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the five appeals filed by the Revenue were not maintainable. The primary reasoning was based on a Full Bench judgment of the same High Court in Lachman Dass Bhatia V. Assistant Commissioner of Income Tax. The Court also noted that the grounds of appeal raised by the Revenue in the present appeals had already been considered and urged in the appeal against the main order of the ITAT dated 31.01.2013. Therefore, the appeals were dismissed on the grounds of non-maintainability. No decision was made on the merits of the rectification application or the original order.

What were the facts?

The Director of Income Tax (Revenue) filed five appeals before the Delhi High Court challenging an order dated 28.04.2014 passed by the Income Tax Appellate Tribunal (ITAT). This order was made pursuant to an application filed by the Revenue under Section 254(2) of the Income Tax Act, seeking rectification of the ITAT's main order dated 31.01.2013. The appeals were filed against Qualcomm Incorporated. The High Court noted that the appeals were not maintainable in light of a Full Bench judgment in Lachman Dass Bhatia V. Assistant Commissioner of Income Tax (ITA 724/2010 and connected cases, decided on 06.08.2010). Furthermore, the grounds raised in the present appeals had already been urged in the appeal against the main order of 31.01.2013.

What were the issues?

1. Whether the appeals filed by the Revenue against the ITAT's order on a rectification application are maintainable, given the Full Bench judgment in Lachman Dass Bhatia V. Assistant Commissioner of Income Tax and the fact that the grounds were already urged in the appeal against the main order. Assessee's Contention: The judgment does not record any specific contentions made by the assessee (Qualcomm Incorporated) regarding the maintainability of the appeals or the merits of the case. The focus was on the Revenue's appeals. Revenue's Contention: The Revenue filed the appeals challenging the ITAT's order on the rectification application. The judgment indicates that the grounds urged by the Revenue in these appeals had already been raised in the appeal against the main order of 31.01.2013. The Revenue's argument implicitly relies on the possibility of challenging the rectification order, but the High Court found this approach flawed based on precedent.

Which sections of the Income-tax Act were involved?

Section 254(2)

AI-generated summary — verify with the full judgment below

$~6 to 10 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 6/2015 + ITA 7/2015 + ITA 8/2015 + ITA 9/2015 + ITA 10/2015 DIRECTOR OF INCOME TAX Appellant Through Mr. Abhishek Singh Baghel, Adv. for Mr. Balbir Singh, sr. standing counsel versus QUALCOMM INCORPORATED NEW DELHI Respondent Through Mr. Deepak Chopra and Ms. Manasvini Bajpai, Advs. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.K.GAUBA ORDER % 14.01.2015 In these five appeals by the revenue the order dated 28.04.2014 impugned in the Income Tax Appellate Tribunal is in respect of an order on the application moved by it under Section 254(2) of the Income Tax Act. The main order of the Tribunal which led to the application seeking rectification, was made on 31.01.2013. The present appeals are by reason of the Full Bench judgment in Lachman Dass Bhatia V. Assistant Commissioner of Income Tax (ITA 724/2010 and connected eases, decided on 06.08.2010) not maintainable. It is also noticed that the ground urged in Digitally Signed By:AMULYA Signature Not Verified

support of the present appeals has already been urged in the appeal against the impugned order dated 31.01.2013. In these circumstances, the appeals are dismissed as non- maintainable. S. RAVINDRA BHAT, J cT R.K.GAUBA, J JANUARY 14, 2015 vld

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