PR. COMMISSIONER OF INCOME TAX vs. ASHTECH INDUSTRIES PVT. LTD.
What did the High Court hold?
The High Court held that the appeal could not be sustained, applying the same rationale as a previous coordinate bench decision. The court noted that the SFIO order was dated after the notice for reopening assessment.
What were the facts?
The Revenue appealed against an ITAT order concerning AY 2009-2010. The appeal was filed despite the tax effect being below the prescribed threshold, citing ongoing SFIO investigations.
What were the issues?
Whether an appeal is maintainable when the tax effect is below the threshold, if parallel investigations by SFIO are ongoing. The timing of the SFIO report relative to the reopening notice.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
$~25 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 59/2023 & CM Appls.4376-77/2023
PR. COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr Zoheb Hossain & Mr Vipul Agrawal, Sr. Standing Counsel with Mr Parth Semwal, Advs.
versus
ASHTECH INDUSTRIES PVT. LTD.
..... Respondent
Through: Mr Kapil Goel, Adv.
CORAM:
HON'BLE MR JUSTICE RAJIV SHAKDHER
HON'BLE MS JUSTICE TARA VITASTA GANJU
O R D E R %
31.01.2023 [Physical Hearing/Hybrid Hearing (as per request)] 1. This appeal is directed against the order dated 20.12.2018 passed by the Income Tax Appellate Tribunal [in short “Tribunal”]. 1.1 This appeal concerns Assessment Year (AY) 2009-2010. 2. This order was passed, after proceedings under Section 147/148 of the Income Tax Act, 1961 [in short “Act”] were initiated, based on inputs received from the Deputy Commissioner of Income Tax (DCIT). 2.1 The admitted position is, that the tax effect in the present appeal is Rs 62,88,150/-. 3. Mr Zoheb Hossain, who appears on behalf of the appellant/revenue, says that parallelly, investigations are being carried out by the SFIO, and therefore, the instant appeal will be maintainable, despite the tax impact being below the prescribed threshold in view of para 10(e) of the circular dated 20.08.2018. ITA 59/2023
page 1 of 2 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 13:31:56
3.1 Mr Hossain, however, has placed before us, fairly, an order of the coordinate bench dated 04.05.2022 passed in ITA No. 113/2021 titled Pr. Commissioner of Income Tax-7 v. M/S Rajdhani Realcon P. Ltd. wherein a similar plea taken on behalf of the appellant/revenue was rejected. In that case, the SFIO’s report is dated 31.03.2016, while the assessment order is dated 16.03.2016. 3.2 In this case, it is noticed, that the SFIO order is dated 31.03.2016, while the notice for reopening assessment was issued prior in point of time i.e., on 28.03.2016. 4. In our view, the same rationale would apply, and therefore, this appeal cannot be sustained. 4.1 The appeal is, accordingly, closed. 5. Consequently, the accompanying applications are rendered inefficacious. Accordingly, the same are closed.
RAJIV SHAKDHER, J
TARA VITASTA GANJU, J
JANUARY 31, 2023/r
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ITA 59/2023
page 2 of 2 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 13:31:56
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