M/S GLOBE AGENCIES vs. ASSISTANT CIT NEW DELHI & ORS & ORS.

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W.P.(C)/8182/2018HC DelhiDLHC01192405201817 November 2022Author: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Delhi High Court held that the writ petition had become infructuous. This was because the Income Tax Appellate Tribunal (ITAT), in its order dated November 26, 2021, had set aside the direction issued by the Commissioner of Income Tax (Appeals) (CIT(A)) on September 20, 2017. The CIT(A)'s direction had been to take action under Sections 147, 148, and 150 of the Income Tax Act, 1961. Since the reassessment proceedings were initiated pursuant to this direction, and the direction itself was nullified by the ITAT, the High Court found no further purpose for the writ petition. The operative direction was to dispose of the writ petition as infructuous, while granting liberty to the petitioner to take appropriate steps if the revenue were to challenge the ITAT's order.

What were the facts?

The petitioner, M/s Globe Agencies, filed a writ petition before the Delhi High Court challenging an order. The Income Tax Appellate Tribunal (ITAT), by its order dated November 26, 2021, had set aside a direction previously issued by the Commissioner of Income Tax (Appeals) (CIT(A)). This direction, dated September 20, 2017, had mandated action under Sections 147, 148, and 150 of the Income Tax Act, 1961. The reassessment proceedings under challenge were initiated pursuant to the CIT(A)'s direction. The High Court noted that since the ITAT had set aside the direction, the reassessment proceedings had become infructuous.

What were the issues?

1. Whether the writ petition has become infructuous in light of the ITAT's order dated November 26, 2021, which set aside the CIT(A)'s direction to initiate reassessment proceedings under Sections 147, 148, and 150 of the Income Tax Act, 1961. Assessee's Contention: The petitioner stated that the ITAT's order had rendered the reassessment proceedings infructuous. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the issues raised by the petitioner. However, the revenue was represented by learned Senior Standing Counsel.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 150

AI-generated summary — verify with the full judgment below

$~24 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 8182/2018 M/S GLOBE AGENCIES ..... Petitioner Through: Mr. R. Santhanam and Mr.Arjun Prasad, Advocates. versus ASSISTANT CIT NEW DELHI & ORS & ORS. ..... Respondents Through: Mr. Ruchir Bhatia, Senior Standing Counsel for Revenue. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 17.11.2022 Learned counsel for the Petitioner states that the Income Tax Appellate Tribunal (‘ITAT’) vide its order dated 26th November, 2021 has set aside the direction given by the Commissioner of Income Tax (Appeals) [‘CIT(A)’] to take action under Sections 147 and 148 read with Section 150 of the Income Tax Act, 1961 (‘the Act’) vide order dated 20th September, 2017. Since the impugned reassessment proceedings had been initiated in pursuance to the aforesaid directions given by the CIT(A), the present writ petition has become infructuous and is disposed of accordingly. However, in the event, the Respondent-Revenue challenges the order of the ITAT dated 26th November, 2021, the Petitioner shall be at liberty to take appropriate steps in accordance with law.

With the aforesaid liberty, the present writ petition stands disposed of. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J NOVEMBER 17, 2022 j

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