CELESTIAL AVIATION SERVICES LIMITED (EARLIER KNOWN AS GE CAPITAL AVIATION SERVICES LIMITED (ERSTWHI vs. ASSISTANT COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE 1(2)(1), NEW DELHI & ANR.

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W.P.(C)/12620/2023HC DelhiDLHC01038209202303 September 2025Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR3 pages
AI SummaryAllowed

What did the High Court hold?

The Delhi High Court noted the submission made by the revenue's counsel, Mr. Ruchir Bhatia, SSC, via an email dated 02.09.2025 from the ACIT. The email stated that proceedings under Section 148 of the Income Tax Act, 1961, for Assessment Year 2012-13, in respect of both Crescent Leasing 7 Limited and Crescent Leasing 10 Limited, were dropped. The reason for dropping these proceedings was that the assessee companies were dissolved and not in existence. In light of this development, the High Court held that the same fate must follow for the writ petitions filed by the shareholder of these erstwhile companies. Consequently, the prayers sought in the petitions, which challenged the notice dated 28.07.2022 under Section 148, the Assessment Order dated 31.07.2023 under Section 147/144/144(C)(3), and the Demand Notice dated 31.07.2023 under Section 156 for AY 2013-14, were liable to be set aside. The court ordered accordingly.

What were the facts?

The petitioner, Celestial Aviation Services Limited (formerly GE Capital Aviation Services Limited), filed two writ petitions before the Delhi High Court. These petitions challenged notices issued under Section 148 of the Income Tax Act, 1961, and subsequent assessment orders and demand notices. The petitioner was the erstwhile shareholder of Crescent Leasing 10 Limited and Crescent Leasing 7 Limited. The assessment years in question were 2012-13 and 2013-14. The revenue, represented by the Assistant Commissioner of Income Tax, International Taxation, informed the court via email that the proceedings under Section 148 for AY 2012-13 against Crescent Leasing 7 Limited and Crescent Leasing 10 Limited were dropped because the assessee companies were dissolved and no longer in existence. The court was considering the petitions challenging notices and orders related to these companies.

What were the issues?

1. Whether the writ petitions challenging the notices issued under Section 148 of the Income Tax Act, 1961, and subsequent assessment orders and demand notices for Assessment Year 2012-13 and 2013-14 are maintainable, given that the underlying assessee companies (Crescent Leasing 7 Limited and Crescent Leasing 10 Limited) have been dissolved and are not in existence. Assessee's Contention: The petitioner, as an erstwhile shareholder, is directly affected by the actions of the revenue and therefore has locus standi to challenge the impugned notices and orders. The petitioner sought to set aside the notices, assessment orders, and demand notices. Revenue's Contention: The revenue, through an email from the ACIT, submitted that proceedings under Section 148 for AY 2012-13 were dropped as the assessee companies were dissolved and not in existence. This submission implies that the basis for the assessment proceedings no longer exists, and therefore, the challenge to these proceedings should be resolved based on this development.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 144,Section 144(C)(3),Section 156

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

W.P.(C) 12620/2023
W.P.(C) 12637/2023

Read from the judgment's own cause title. This page is filed under one of them.

$~29 & 30 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 12620/2023 & CM APPL. 49792/2023 CELESTIAL AVIATION SERVICES LIMITED (EARLIER KNOWN AS GE CAPITAL AVIATION SERVICES LIMITED (ERSTWHILE SHAREHOLDER OF CRESCENT LEASING 10 LTD.) .....Petitioner Through: Mr. Sachit Jolly, Senior Advocate with Mr. Devansh jain and Ms. Viyushti Rawat, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE 1(2)(1), NEW DELHI & ANR. .....Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC, Mr. P. Gupta & Mr. Abhishek Anand, Adv. (30) + W.P.(C) 12637/2023 & CM APPL. 49834/2023 CELESTIAL AVIATION SERVICES LIMITED EARLIER KNOWN AS GE CAPITAL AVIATION SERVICES LIMITED ERSTWHILE SHAREHOLDER OF CRESCENT LEASING 7 LTD. .....Petitioner Through: Mr. Sachit Jolly, Senior Advocate with Mr. Devansh jain and Ms. Viyushti Rawat, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAXCIRCLE 1 2 1, 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 11/09/2025 at 12:39:07

INTERNATIONAL TAXATION NEW DELHI & ANR. .....Respondents Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC, Mr. P. Gupta & Mr. Abhishek Anand, Adv. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR O R D E R % 03.09.2025 1. Our attention has been drawn by Mr. Ruchir Bhatia, SSC to the E- mail dated 02.09.2025 received by him from the ACIT, Circle 1(2)(1), International Tax, Delhi which reads as under:- “... In this regard, it is submitted that from the perusal of the material available on record, it is found that the proceedings u/s 148 of the Act were dropped on the grounds that the assessee company was already dissolved and not in existence. Thus, in both the cases (i.e. CRESCENT LEASING 7 LIMITED and CRESCENT LEASING 10 LIMITED) for AY 2012-13, the proceedings u/s 148 were droppted.” 2. Suffice to state, this petition (W.P.(C) 12620/2023) has been filed by the shareholder of the erstwhile company being Crescent Leasing 10 Limited. Similarly, W.P.(C) 12637/2023 has been filed by the shareholder of erstwhile company Crescent Leasing 7 Limited. In view of the contents of the E-mail received by Mr. Bhatia as the proceedings in respect of the Crescent Leasing 7 Limited and Crescent Leasing 10 Limited have been dropped for the Assessment Years (AY) 2012-13, for the reason that the two companies have been dissolved, the same fate must also follow in respect of these petitions. 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 11/09/2025 at 12:39:07

3.

Accordingly, the prayers sought in the present petitions challenging the notice dated 28.07.2022 issued under Section 148 of the Act along with Assessment Order dated 31.07.2023; passed under Section 147/144/144(C)(3); the impugned Demand Notice dated 31.07.2023 issued under Section 156 of the Act for the AY 2013-14 are liable to be set aside. We order accordingly. V. KAMESWAR RAO, J VINOD KUMAR, J SEPTEMBER 3, 2025 rk 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 11/09/2025 at 12:39:07

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