NATIONAL ACREDITATION BOARD FOR TESTING AND CALLIBRATION LABORATORIES vs. DIRECTOR GENERAL OF INCOME TAX AND ANR

PDF · subscribers
W.P.(C)/5259/2010HC DelhiDLHC01116166201009 March 2026Bench: HON'BLE MR. JUSTICE DINESH MEHTA,HON'BLE MR. JUSTICE VINOD KUMAR2 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court dismissed the writ petition as having become infructuous. The Court noted that the matter had been pending since 2010 and no interim order had been passed. The revenue's counsel argued that since the exemption certificate was for AY 2009-10, it could no longer be issued. Additionally, the revenue contended that the absence of interim protection rendered the petition infructuous. The Court accepted these submissions and disposed of the petition without deciding the merits of the exemption claim. No specific finding was made on whether the petitioner fulfilled the conditions for exemption under Section 10(23C)(iv).

What were the facts?

The petitioner, National Accreditation Board for Testing and Calibration Laboratories, filed a writ petition before the Delhi High Court challenging an order dated March 19, 2010, which rejected its application for exemption under Section 10(23C)(iv) of the Income Tax Act, 1961. The petitioner sought to quash this order and direct the respondent, Director General of Income Tax, to grant the exemption, asserting it had fulfilled all eligibility conditions. The petition also sought a stay on assessment proceedings to prevent high tax demands and cash flow issues. The matter has been pending since 2010, and no interim order was granted.

What were the issues?

1. Whether the writ petition seeking quashing of the order dated March 19, 2010, rejecting exemption under Section 10(23C)(iv) of the Income Tax Act, 1961, and directing the grant of such exemption, is maintainable and can be decided on merits. Assessee's Contention: The petitioner argued that it fulfilled all necessary conditions for exemption under Section 10(23C)(iv) and that the rejection order was erroneous. It sought to have the order quashed and the exemption granted. Revenue's Contention: The respondent submitted that since the exemption certificate was sought for Assessment Year 2009-10, it cannot now be issued. Furthermore, as no interim protection was provided to the assessee, the petition has become infructuous and should be dismissed.

Which sections of the Income-tax Act were involved?

Section 10(23C)(iv)

AI-generated summary — verify with the full judgment below

$~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 5259/2010 NATIONAL ACREDITATION BOARD FOR TESTING AND CALLIBRATION LABORATORIES

.....Petitioner

Through:

versus

DIRECTOR GENERAL OF INCOME TAX AND ANR .....Respondents Through: Mr. Shlok Chandra, SSC with Ms. Naincy Jain, JSC, Ms. Madhavi Shukla, JSC & Mr. Udit Dad, Adv.

CORAM:

HON'BLE MR. JUSTICE DINESH MEHTA

HON'BLE MR. JUSTICE VINOD KUMAR

O R D E R %

09.03.2026 1. In view of the notification no.64/G-4/Genl.-I/DHC dated 27.02.2026, the matters listed on 07.03.2026 were directed to be listed today i.e., 09.03.2026. 2. The petition has been preferred for the following prayers: “(i) Quashing Impugned order dated 19.03.2010 rejecting exemption under sec. 10(23C)(iv) of Income Tax Act 1961 (Annexure P1) (ii) Directing Respondent No. 1 to pass order granting exemption to Petitioners as the Petitioner has fulfilled all the necessary conditions for being eligible for exemption u/s 10(23C)(iv) of the Income tax Act, 1961, [approval maybe granted].

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 13/03/2026 at 13:43:53

8.

Interim order if any prayed for In the facts and circumstances of the case, the operation of the impugned order may kindly be stayed till final disposal of this petition or any other suitable order in favour of the Petitioner doing justice may kindly be granted as irreparable injury will be caused to the Petitioner in case the assessment proceedings are not stayed, as this will result in raising of high pitched illegal tax demands and enforcement of payment. This will cause huge cash flow problems and hardship to the Petitioner in discharge of application towards objects of the Petitioner as its funds will be locked-up with the Respondent Income Tax Department.” 3. The matter is pending since 2010 and no interim order has been passed. 4. Mr. Shlok Chandra, learned Senior Standing Counsel for the respondents submitted that since the exemption certificate was to be given for the AY 2009-10; no exemption certificate can now be issued. He further submitted that since no interim protection to the assessee was provided, the petition has been rendered infructuous and prayed that the same be dismissed accordingly. 5. For the above stated reasons, the petition is dismissed as having become infructuous.

DINESH MEHTA, J.

VINOD KUMAR, J. MARCH 9, 2026/sr

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 13/03/2026 at 13:43:53

More judgments on Section 10(23C)(iv)

All 149 judgments and leading authorities on Section 10(23C)(iv) →

Recent GST High Court judgments

Search GST case law →