Facts of the Case

The Revenue filed multiple appeals before the Delhi High Court against the orders passed by the Income Tax Appellate Tribunal concerning Nazar Trading Pvt. Ltd.

During the hearing, counsel for the respondent/assessee, on instructions, submitted that the appeals may be allowed and the matter may be remanded back to the Assessing Officer for passing a fresh assessment order. This submission was made relying on an earlier decision of the Delhi High Court in Pr. Commissioner of Income Tax-06 vs Matchless Glass Services Pvt. Ltd. (decided on 18.12.2015).

The Revenue did not oppose this request.

Issues Involved

  1. Whether the High Court should frame a substantial question of law before deciding the appeal under Section 260A.
  2. Whether the matter can be remanded to the Assessing Officer based on mutual consent of parties.
  3. Whether prior assessment and appellate orders should be set aside without adjudicating on merits.

Petitioner’s (Revenue) Arguments

  • The Revenue accepted the statement made by the assessee.
  • It did not object to remanding the matter to the Assessing Officer for fresh adjudication.

Respondent’s (Assessee) Arguments

  • The assessee requested that the appeals be allowed without framing any substantial question of law.
  • It sought remand of the case to the Assessing Officer for fresh assessment.
  • The request was made in light of the precedent set in Matchless Glass Services Pvt. Ltd. case.

Court’s Findings / Order

  • The Delhi High Court recorded the statement made by the assessee.
  • The Court allowed the appeals.
  • The assessment order, appellate orders, and the Tribunal’s order were set aside.
  • The matter was remanded to the Assessing Officer for fresh adjudication/decision.

Important Clarification by Court

  • The Court expressly clarified that it had not expressed any opinion on the merits of the case.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:8307-DB/SKN09072018ITA10432017_145645.pd

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