INTERNATIONAL HOSPITAL LIMITED vs. DCIT CIRCLE 12 (2)

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ITA - 116 / 2023HC Delhi28 February 20233 pages
For Petitioner: SIMRAN MEHTA
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the Tribunal had not considered relevant Supreme Court judgments when dismissing an appeal. The court issued notice and listed the appeal for further hearing.

What were the facts?

The appellant's jurisdictional notice under Section 143(2) and assessment order under Section 143(3) were issued to an entity that had merged with the appellant. The CIT(A) dismissed the appeal after an order under Section 154 was passed, and a subsequent appeal against the Section 154 order was also dismissed by the CIT(A).

What were the issues?

Whether the jurisdictional notice and assessment order were validly issued to a non-existent entity due to amalgamation. Whether the Tribunal properly considered relevant legal precedents in its decision.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 143(3),Section 154

AI-generated summary — verify with the full judgment below

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$~22 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 116/2023

INTERNATIONAL HOSPITAL LIMITED ..... Appellant

Through: Mr Simran Mehta, Advocate.

versus

DCIT CIRCLE 12 (2)

..... Respondent Through: Mr Viplav Acharya, proxy for Mr Shailendra Kishore Singh, Sr. Standing Counsel.

CORAM:

HON'BLE MR JUSTICE RAJIV SHAKDHER

HON'BLE MS JUSTICE TARA VITASTA GANJU

O R D E R %

28.02.2023 [Physical Hearing/Hybrid Hearing (as per request)] CM APPL. 9623/2023 1. Allowed, subject to the appellant filing legible copies of the annexures, at least three days before the next date of hearing. ITA 116/2023 2. This appeal concerns Assessment Year (AY) 2013-2014. 3. It is the appellant/assessee‟s case that the jurisdictional notice dated 05.09.2014 issued under Section 143(2) of the Income Tax Act, 1961 [in short, “the Act”] was served on an entity, i.e., Escorts Heart & Super Speciality Institute Ltd., which was not in existence as it had merged with

ITA 116/2023

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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 27/03/2026 at 13:12:55

the appellant-company pursuant to an amalgamation scheme sanctioned by the Punjab and Haryana High Court w.e.f. 01.01.2013. 4. Furthermore, the record seems to suggest that a scrutiny assessment under Section 143(3) of the Act was framed on 28.03.2016, once again against the aforementioned amalgamating entity. 5. It appears that while the appeal was pending before the Commissioner of Income Tax (Appeals) [in short, “CIT(A)”], the Assessing Officer (AO) took recourse to provisions of Section 154 of the Act and rectified the order in appeal. The order under Section 154 of the Act was passed on 29.01.2019. 5.1 The CIT(A), after noticing that an order had been passed under Section 154 of the Act, dismissed the appeal on 15.04.2019. 6. We are informed that since the appellant/assessee had also filed an appeal against the order dated 29.01.2019 passed under Section 154 of the Act, the said appeal had also come up for hearing before the CIT(A). Thus the appeal was disallowed by the CIT(A) on 30.05.2019. 6. We are informed by Mr Simran Mehta, who appears on behalf of the appellant/assessee, that appeals have been preferred with the Income Tax Appellate Tribunal [in short, “Tribunal”] against orders dated 15.04.2019 and 30.05.2019 passed by the CIT(A). 7. We are told that appeal against order dated 15.04.2019 passed by the CIT(A) is pending adjudication before the Tribunal. It requires to be noticed that insofar as the appeal against CIT(A) order dated 30.05.2019 is concerned, the same stands dismissed via order dated 23.09.2022.

ITA 116/2023

page 2 of 3 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 27/03/2026 at 13:12:55

8.

A perusal of the impugned order dated 23.09.2022 discloses that the Tribunal has not adverted to any judgment which may perhaps have had bearing in the matter, including the judgment of the Supreme Court rendered in Principal Commissioner of Income Tax, New Delhi v. Maruti Suzuki India Ltd. (2019) 416 ITR 613 (SC) or the other judgment of the Supreme Court rendered in Principal Commissioner of Income Tax (Central)-2 v. Mahagun Realtors (P) Ltd. (2022) SCC OnLine SC 407. 9. We may also note that this bench has also rendered a judgment on 02.02.2023 in ITA 115/2019 titled CIT v. Sony Mobile Communications, in which the aforementioned judgments rendered by the Supreme Court and other judgments on the issue have been discussed. 10. Accordingly, issue notice. 10.1 Mr Viplav Acharya accepts notice on behalf of the respondent/revenue. 10.2 Mr Acharya says that he will return with instructions in the matter. 11. List the appeal on 17.03.2023.

RAJIV SHAKDHER, J

TARA VITASTA GANJU, J

FEBRUARY 28, 2023 / tr

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ITA 116/2023

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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 27/03/2026 at 13:12:55

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