Facts of the Case

The appellants, Aradhana Drinks and Beverages Pvt. Ltd. and Aradhana Foods and Juice Pvt. Ltd., had filed appeals before the Delhi High Court challenging orders under the Income Tax Act.

During the pendency of these appeals, the matters were remanded to the lower authority. In the post-remand proceedings, the assessees succeeded, and an appeal effect order was passed in their favour.

Issues Involved

  1. Whether the appeals should continue when the assessee has already succeeded in post-remand proceedings.
  2. Whether the High Court should adjudicate on merits despite the relief already granted at the lower level.

Petitioner’s Arguments

  • The assessees submitted that they had already succeeded in the remand proceedings.
  • An appeal effect order had been passed, granting them the relief sought.
  • Therefore, the appellants sought permission to withdraw the appeals as they had become infructuous.

Respondent’s Arguments

  • The Revenue was represented but did not raise any substantial objection to the withdrawal request.
  • The matter was left to the discretion of the Court considering the factual developments.

Court’s Findings / Order

  • The Court acknowledged that the assessees had succeeded in post-remand proceedings.
  • Since the relief had already been granted, the appeals no longer required adjudication.
  • Accordingly, the Court:
    • Allowed withdrawal of the appeals
    • Dismissed the appeals as withdrawn
    • Disposed of all pending applications

Important Clarification

  • When an assessee obtains relief in post-remand proceedings, continuation of the appeal before the High Court becomes unnecessary.
  • Courts generally permit withdrawal of appeals in such circumstances, avoiding redundant adjudication.
  • This case reinforces the principle that judicial time should not be spent on infructuous matters.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2019:DHC:7408-DB/SMD14082019ITA522019_162251.pdf

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