Facts of the Case

The Revenue filed multiple appeals before the Delhi High Court challenging the orders passed by the Income Tax Appellate Tribunal in favour of the assessee, Nazar Trading Pvt. Ltd.

During the hearing, counsel for the respondent/assessee submitted that the appeals could be allowed without framing any substantial question of law and requested that the matter be remanded to the Assessing Officer for fresh adjudication. This submission was made in light of an earlier Delhi High Court judgment in Pr. Commissioner of Income Tax-06 vs. Matchless Glass Services Pvt. Ltd.

The Revenue did not object to this request.

Issues Involved

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

Petitioner’s (Revenue) Arguments

  • The Revenue initially filed appeals challenging the Tribunal’s decision.
  • Upon the assessee’s request for remand, the Revenue stated that it had no objection to the matter being remanded for fresh assessment.

Respondent’s (Assessee) Arguments

  • The assessee requested that:
    • Appeals be allowed without framing any substantial question of law.
    • The matter be remanded to the Assessing Officer for fresh assessment.
  • This request was based on the precedent laid down in Matchless Glass Services Pvt. Ltd. case.

Court’s Findings / Order

  • The Delhi High Court accepted the statements made by both parties.
  • The Court:
    • Allowed the appeals
    • Set aside:
      • Assessment orders
      • Appellate orders
      • Tribunal’s impugned order
    • Remanded the matter to the Assessing Officer for fresh adjudication.

Important Clarification by the Court

  • The Court explicitly clarified that:
    • No opinion was expressed on the merits of the cas

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

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