Facts of the Case

The Revenue (Appellant) filed appeals against the order dated 31.10.2022 passed by the Income Tax Appellate Tribunal (ITAT) concerning Assessment Years 2015–16 and 2016–17.

Additionally, there was a delay of 60 days in re-filing the appeals, for which condonation applications were filed. The Respondent (assessee) did not object to the condonation of delay.

It was also brought to the Court’s attention that in a similar matter for AY 2017–18 involving the same assessee, the Court had previously closed the appeal and granted liberty to file a writ petition, following the Full Bench judgment in Lachman Dass Bhatia.

Issues Involved

  1. Whether delay in re-filing the appeals should be condoned.
  2. Whether the appeals filed by the Revenue were maintainable in light of earlier judicial precedent.
  3. Whether the Revenue should instead pursue remedy via a writ petition.

Petitioner’s (Revenue’s) Arguments

  • The Revenue submitted that there was a delay of 60 days in re-filing, which should be condoned.
  • The Revenue sought to challenge the ITAT’s order through the present appeals.
  • It relied on its right to appeal under the Income Tax Act.

Respondent’s (Assessee’s) Arguments

  • The Respondent did not oppose the condonation of delay.
  • It highlighted that in a similar matter involving the same assessee, the Court had already directed that the appropriate remedy lies in filing a writ petition.

Court’s Findings / Order

  • The Court condoned the delay of 60 days in re-filing the appeals.
  • Taking note of its earlier decision in a similar matter, and relying on the Full Bench ruling in Lachman Dass Bhatia, the Court held that:
    • The present appeals are not to be entertained in the current form.
  • Accordingly, the Court:
    • Closed the appeals, and
    • Granted liberty to the Revenue to file a writ petition.

Important Clarification

  • The Court reaffirmed that where the issue is governed by the Full Bench decision in Lachman Dass Bhatia, the appropriate remedy is not an appeal but a writ petition.
  • This decision ensures procedural consistency in tax litigation involving similar questions.

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60802082023ITA4202023_092536.pdf

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