SSG INFRATECH PRIVATE LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 22(2), DELHI

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W.P.(C)/4665/2025HC DelhiDLHC01020169202523 April 2025Author: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA1 pages
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What did the High Court hold?

The High Court held that the assessment order dated March 18, 2025, could not be sustained. The reasoning was that this assessment order was passed by the Assessing Officer (AO) as a consequence of the order passed by the Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961. Crucially, the Income Tax Appellate Tribunal (ITAT) had allowed the appeal against the Section 263 order on March 12, 2025. Since the order under Section 263, which formed the basis for the AO's action, was set aside, the impugned assessment order was rendered invalid. Therefore, the High Court allowed the writ petition and set aside the assessment order. No issues were expressly left undecided.

What were the facts?

The petitioner, SSG Infratech Private Limited, filed a writ petition challenging an assessment order dated March 18, 2025, for Assessment Year 2013-14. This assessment order was passed by the Assessing Officer (AO) following an order dated March 14, 2024, issued by the Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961. The order under Section 263 had been the subject of an appeal before the Income Tax Appellate Tribunal (ITAT). The ITAT had passed an order on March 12, 2025, allowing the appeal against the Section 263 order.

What were the issues?

1. Whether the assessment order dated March 18, 2025, passed by the Assessing Officer for AY 2013-14, can be sustained when the order of the Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961, pursuant to which it was passed, has been set aside by the Income Tax Appellate Tribunal. Assessee's Contention: The assessee argued that since the foundational order under Section 263, which mandated the AO to pass the impugned assessment order, was itself set aside by the ITAT, the subsequent assessment order could not survive. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding this issue.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~96 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 4665/2025 and CM APPL. 21573/2025 SSG INFRATECH PRIVATE LIMITED .....Petitioner Through: Mr Aditya Gupta, Advocate. versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 22(2), DELHI .....Respondent Through: Mr Ruchir Bhatia, SSC. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA

O R D E R %

23.04.

2025

1.

The petitioner has filed the present petition, inter alia, impugning an assessment order dated 18.03.2025 in respect of Assessment Year [AY] 2013-14. Concededly, the said order is passed by the Assessing Officer [AO] pursuant to the order passed by the Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961 [the Act] on 14.03.2024. The said order was subject matter of an appeal before the Income Tax Appellate Tribunal, which was allowed on 12.03.2025. 2. Since the order under Section 263 of the Act pursuant to which the impugned assessment order has been passed had been set aside, the assessment order cannot be sustained.

3.

In view of the above, the present petition is allowed and the impugned assessment order is set aside. Pending application shall also stand disposed of.

VIBHU BAKHRU, J

TEJAS KARIA, J APRIL 23, 2025/tr

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