RAJASTHAN PRIME STEEL PROCESSING CENTER PVT. LTD. vs. DEPUTY COMMISSIONER OF INCOME TAX & ANR.

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ITA/207/2022HC DelhiDLHC01027015202220 July 2022Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the present appeal and application by directing the ITAT to dispose of the application filed under Section 254(2) of the Act, being M.A. No.91/Del/2020 arising out of ITA No.488/Del/2021, within six months. The Court explicitly clarified that it had not commented on the merits of the controversy. The rights and contentions of all parties were left open. Liberty was granted to the appellant to raise all issues, including all grounds and questions of law raised in the present appeal, in case the appellant is aggrieved after the disposal of the application under Section 254(2) of the Act by the Tribunal. No specific finding was given on the maintainability of the appeal, as the matter was disposed of with a direction to the ITAT.

What were the facts?

The appellant, Rajasthan Prime Steel Processing Center Pvt. Ltd., filed an Income Tax Appeal before the Delhi High Court challenging an order dated November 11, 2021, passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.488/Del/2021 for Assessment Year 2016-17. The respondents are the Deputy Commissioner of Income Tax & Anr. The revenue raised a preliminary objection regarding the maintainability of the appeal, citing a pending application filed by the appellant under Section 254(2) of the Income Tax Act, 1961, before the ITAT. The appellant argued that the issue was recurring and that delay in deciding the Section 254(2) application would lead to the impugned judgment being followed in subsequent assessment years.

What were the issues?

1. Whether the present appeal is maintainable when an application under Section 254(2) of the Income Tax Act, 1961, filed by the appellant before the ITAT, is pending consideration. Assessee's Contention: The appellant argued that the issue involved is recurring. They contended that if the application under Section 254(2) of the Act is not decided expeditiously, the subordinate authorities and the ITAT itself would follow the impugned judgment in subsequent assessment years, causing prejudice. Revenue's Contention: The revenue raised a preliminary objection to the maintainability of the present appeal on the ground that the appellant has filed an application under Section 254(2) of the Income Tax Act, 1961, before the ITAT, which is pending consideration.

Which sections of the Income-tax Act were involved?

Section 254(2)

AI-generated summary — verify with the full judgment below

$~S-23 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 207/2022 & CM APPL.31653/2022 RAJASTHAN PRIME STEEL PROCESSING CENTER PVT. LTD. ..... Appellant Through: Mr.Nageswar Rao, Advocate with Mr.Akshay Uppal, Advocate. versus DEPUTY COMMISSIONER OF INCOME TAX & ANR. ..... Respondents Through: Mr.Ruchir Bhatia, Sr.Standing Counsel. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 20.07.2022 Present Income Tax Appeal has been filed challenging the Order dated 11th November, 2021 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No.488/Del/2021 for the Assessment Year 2016-17. At the outset, learned counsel for the respondents raises a preliminary objection to the maintainability of the present appeal on the ground that the appellant has filed an application under Section 254(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) before the ITAT, which is pending consideration. Per contra, learned counsel for the appellant states that the issue raised in the present appeal is a recurring issue and if the application filed under Section 254(2) of the Act is not decided expeditiously, the 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 15/06/2026 at 01:46:30

Subordinate Authority as well as the ITAT will follow the impugned judgment in the subsequent assessment years. Keeping in view the aforesaid submission, this Court disposes of the present appeal and application by directing ITAT to dispose of the application filed under Section 254(2) of the Act being M.A. No.91/Del/2020 arising out of ITA No.488/Del/2021 within six months. It is clarified that this Court has not commented on the merits of the controversy. The rights and contentions of all the parties are left open. Liberty is granted to the appellant to raise all issues, including all grounds and questions of law raised in the present appeal, in case the appellant is aggrieved after disposal of application under Section 254(2) of the Act by the Tribunal. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J JULY 20, 2022 TS 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 15/06/2026 at 01:46:30

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