PICO DEEPALI OVERLAYS CONSORTIUM BY DEEPALI DESIGNS AND EXHIBITS PRIVATE LIMITED AS ALLEGED MEMBER vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-17,NEW DELHI AND ANR

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W.P.(C)/7327/2023HC DelhiDLHC01020842202325 May 2023Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA3 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court directed the Income Tax Appellate Tribunal (ITAT) to dispose of the application and/or the substantive appeal pending before it at the earliest, but not later than four months from the date of receipt of a copy of the High Court's order. The court acknowledged the petitioner's prayer for an expeditious disposal of ITA 518/Del/2022, specifically concerning the preliminary issue of DDEPL's membership in the AOP. Given that the ITAT had not yet rendered a decision on the application filed by the petitioner, the High Court exercised its supervisory jurisdiction to ensure timely adjudication. The court did not delve into the merits of the preliminary issue or the substantive appeal itself, but rather focused on procedural efficiency. The operative direction is for the ITAT to proceed with the disposal within the stipulated timeframe.

What were the facts?

The petitioner, Pico Deepali Overlays Consortium (represented by Deepali Designs and Exhibits Private Limited as an alleged member of an AOP), filed a writ petition before the Delhi High Court seeking a mandamus directing the Income Tax Appellate Tribunal (ITAT) to expeditiously dispose of ITA 518/Del/2022. The petitioner specifically requested that the ITAT first decide the preliminary issue of whether Deepali Designs and Exhibits Private Limited (DDEPL) is a member of the AOP. This was a second attempt by the petitioner, as a previous writ petition (W.P.(C)No.12560/2022) filed for a similar direction was withdrawn on August 31, 2022, with liberty to seek relief from the ITAT. The petitioner claims to have filed an application dated November 14, 2022, with the ITAT, but no decision has been rendered on either the application or the substantive appeal.

What were the issues?

1. Whether a writ of mandamus should be issued directing the ITAT to expeditiously dispose of ITA 518/Del/2022, including the preliminary issue of DDEPL's membership in the AOP. (Question of law and fact, turning on the court's power to direct expeditious disposal of pending matters and the ITAT's procedural obligations). Assessee's Contention: The petitioner argued that the ITAT has not rendered any decision on their application or the substantive appeal, despite the passage of time and a previous liberty granted by the High Court. They sought a direction for expeditious disposal. Revenue's Contention: The revenue, through its standing counsel, accepted notice and stated that a counter-affidavit was not necessary, indicating a willingness to argue the matter based on the existing record. No specific argument against the petitioner's prayer for expeditious disposal was recorded.

AI-generated summary — verify with the full judgment below

Heard together (3 matters)

W.P.(C) 7327/2023
ITA 518/Del/2022
W.P.(C)No.12560/2022

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

W.P.(C) 7327/2023 Page 1 of 3

$~69 * IN THE HIGH COURT OF DELHI AT NEW DELHI

Decision delivered on: 25.05.2023 + W.P.(C) 7327/2023 & CM APPL. 28510/2023

PICO DEEPALI OVERLAYS CONSORTIUM BY DEEPALI DESIGNS AND EXHIBITS PRIVATE LIMITED AS ALLEGED MEMBER OF THE AOP

..... Petitioner Through: Mr Raghavendra Singh and Mr Abhishek Gupta, Advs.

versus

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-17,NEW DELHI AND ANR

..... Respondents Through: Mr Sanjay Kumar, Sr Standing Counsel with Ms Easha and Ms Hemlata Rawat, Standing Counsels.

CORAM:

HON'BLE MR. JUSTICE RAJIV SHAKDHER

HON'BLE MR. JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)] RAJIV SHAKDHER, J. (ORAL): CM No.28510/2023 1. Allowed, subject to just exceptions. W.P.(C) 7327/2023 2. Issue notice. 2.1 Ms Easha Kadian, learned standing counsel, accepts notice on behalf of the respondents/revenue. 3. Given the direction that we propose to issue, Ms Kadian says that Digitally Signed By:TARUN RANA Signing Date:27.06.2023 13:43:04 Signature Not Verified

W.P.(C) 7327/2023 Page 2 of 3

counter-affidavit need not be filed, and she will argue the matter based on the record presently available with the court. 3.1 Therefore, with the consent of learned counsel for the parties, the matter is taken up for hearing and final disposal at this stage itself. 4. The substantive prayer made in the writ petition reads as follows : “(a) Issue a writ of mandamus directing an expeditious disposal of ITA 518/Del/2022 before the Hon' ble ITAT, New Delhi by first deciding the preliminary issue whether DDEPL is a member of the AOP or not.”

5.

The record shows that the petitioner had approached the court for the very same direction by way of an earlier writ action, i.e., W.P.(C)No.12560/2022. 6. This writ petition was disposed of by the coordinate bench on 31.08.2022 when the following short order was passed : “After some arguments, learned counsel for the petitioner wishes to withdraw the present writ petition with liberty to seek the same relief from the ITAT by filing an appropriate application. This Court is confident that if the said application is filed before the ITAT, the same shall be considered in accordance with law. With the aforesaid observation and liberty, the present writ petition along with pending application stands disposed of.”

7.

Learned counsel for the petitioner informs us that in consonance with the observations made by the coordinate bench on 31.08.2022, an application dated 14.11.2022 was filed with the Tribunal. 7.1 We are told by learned counsel for the petitioner that the Tribunal has not rendered any decision, either on the application or the substantive appeal pending adjudication before it. 8. Given this position, we request the Tribunal to dispose of the application and/or the substantive appeal pending before it at the earliest, Digitally Signed By:TARUN RANA Signing Date:27.06.2023 13:43:04 Signature Not Verified

W.P.(C) 7327/2023 Page 3 of 3

though not later than four months from the date of receipt of a copy of the order passed by this court. 9. The writ petition and pending applications are disposed of, in the aforesaid terms. 10. Parties will act based on the digitally signed copy of the order.

RAJIV SHAKDHER, J

GIRISH KATHPALIA, J

MAY 25, 2023

aj Digitally Signed By:TARUN RANA Signing Date:27.06.2023 13:43:04 Signature Not Verified

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