M/S COIM INDIA PVT. LTD. vs. ADDITIONAL COMMISSIONER OF INCOME T & ANR.

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W.P.(C)/2193/2018HC DelhiDLHC01049520201809 April 2024Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV2 pages
AI SummaryAllowed

What did the High Court hold?

The Delhi High Court allowed the writ petitions. The Court noted that the parties were in agreement that the writ petitions should be allowed, taking into account the order passed in ITA 269/2019 dated February 19, 2024, which dealt with the quantum appeal. It was not disputed that the reassessment proceedings being challenged were founded on the judgment of the ITAT. Since the ITAT had ultimately decided in favour of the assessee in that appeal, the High Court held that the impugned reassessment could not be sustained. Consequently, the Court quashed the impugned orders dated December 20, 2017, and the impugned notices dated March 28, 2017, and November 17, 2017. The ratio decidendi is that reassessment proceedings based on an ITAT decision that is subsequently decided in favour of the assessee are unsustainable.

What were the facts?

The petitioner, M/s COIM INDIA PVT. LTD., filed two writ petitions (W.P.(C) 2193/2018 and W.P.(C) 2205/2018) before the Delhi High Court. These petitions challenged certain reassessment orders and notices issued by the Additional Commissioner of Income Tax. The core of the dispute revolved around a reassessment that was based on a prior judgment of the Income Tax Appellate Tribunal (ITAT). The ITAT's decision in the related quantum appeal (ITA 269/2019) was rendered on February 19, 2024. The parties before the High Court agreed that the outcome of the writ petitions should be determined by the ITAT's earlier ruling.

What were the issues?

1. Whether the impugned reassessment proceedings and consequent orders/notices are sustainable in light of the Income Tax Appellate Tribunal's (ITAT) decision in the related quantum appeal (ITA 269/2019)? (Question of law) Assessee's Contention: The assessee argued that since the ITAT had already ruled in their favour in the quantum appeal, the reassessment proceedings based on that very decision would not be valid and should be quashed. They relied on the principle that a reassessment founded on a subsequently overturned or decided matter should not stand. Revenue's Contention: The revenue did not dispute the assessee's contention. They agreed that the writ petitions should be allowed and disposed of bearing in mind the ITAT's order in ITA 269/2019.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

W.P.(C) 2193/2018
W.P.(C) 2205/2018

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

$~61 & 62 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 2193/2018

M/S COIM INDIA PVT. LTD.

..... Petitioner

Through: Mr. Nageswar Rao, Adv. with

Mr. Parth and Mr. Aman

Rawaria, Advs.

Versus

ADDITIONAL COMMISSIONER OF INCOME T & ANR. ..... Respondents

Through: Mr. Shlok Chandra, Sr.SC with

Ms. Madhavi Shukla and Ms.

Priya Sarkar, Jr.SCs.

62 + W.P.(C) 2205/2018

M/S COIM INDIA PVT. LTD.

..... Petitioner

Through: Mr. Nageswar Rao, Adv. with

Mr. Parth and Mr. Aman

Rawaria, Advs.

Versus

ADDITIONAL COMMISSIONER OF INCOME TAX & ANR.

..... Respondents

Through: Mr. Shlok Chandra, Sr.SC with

Ms. Madhavi Shukla and Ms.

Priya Sarkar, Jr.SCs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

O R D E R %

09.04.2024

1.

Learned counsels appearing for parties are ad idem that the instant writ petitions would deserve to be allowed and disposed of 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 15/04/2024 at 12:07:40

bearing in mind the order rendered by us in ITA 269/2019 dated 19 February 2024 and which constituted the quantum appeal. 2. It is not disputed before us that the re-assessment which is assailed in the instant petitions is rested and founded on the judgment of the Income Tax Appellate Tribunal [“ITAT”] which formed the subject matter of the aforenoted appeal. 3. Since the ITAT had ultimately handed down a decision in favour of the assessee, the impugned re-assessment would not sustain. 4. We accordingly, allow the instant writ petitions and quash the impugned orders dated 20 December 2017 and impugned notices dated 28 March 2017 and 17 November 2017.

YASHWANT VARMA, J.

PURUSHAINDRA KUMAR KAURAV, J. APRIL 9, 2024/p 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 15/04/2024 at 12:07:40

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