Facts of the Case

The Petitioner, India Trade Promotion Organization, had approached the Delhi High Court by filing a writ petition against the Deputy Commissioner of Income Tax (Exemption), New Delhi, challenging the Revenue’s action connected with tax proceedings.

During the pendency of the writ proceedings, the Revenue communicated through its letter dated 16 February 2017 that the notice dated 11 September 2015, which was the subject matter of challenge, had become infructuous because appellate orders had already been passed by the Commissioner of Income Tax (Appeals) for Assessment Years 2009-10, 2010-11, and 2011-12.

 Issues Involved

  1. Whether the writ petition challenging the impugned tax notice remained maintainable after appellate adjudication by the CIT(A).
  2. Whether the cause of action survived once the appellate authority had passed orders covering the relevant assessment years.

 Petitioner’s Arguments

  • The petitioner had originally challenged the action initiated by the Revenue through the impugned notice.
  • Upon being informed of the Revenue’s stand and the subsequent appellate developments, counsel for the petitioner sought withdrawal of the writ petition.

 Respondent’s Arguments

  • The Revenue informed the Court that the impugned notice had become infructuous.
  • It was submitted that the appellate authority, namely the CIT(A), had already passed orders for the concerned assessment years, thereby superseding the immediate grievance raised in the writ petition.

 Court Order / Findings

The Delhi High Court recorded the statement made by the petitioner’s counsel seeking withdrawal of the writ petition in light of the Revenue’s stand.

The Court held that since the impugned notice had become infructuous owing to the appellate orders passed by the CIT(A), the writ petition no longer survived for adjudication. Accordingly, the writ petition was dismissed as withdrawn.

 Important Clarification

This order does not adjudicate upon the merits of the tax dispute. The High Court merely recorded that the matter had become infructuous due to subsequent appellate proceedings and permitted withdrawal of the petition.

Thus, this judgment is relevant primarily on the procedural principle that when the cause of action ceases to survive because of subsequent statutory appellate remedies or orders, a writ petition may become infructuous.

Sections Involved

  • Income Tax Act, 1961
  • Appellate jurisdiction and assessment proceedings (as arising from the facts of the case)
  • Proceedings before Commissioner of Income Tax (Appeals) [CIT(A)]

 Link to download the order - https://delhihighcourt.nic.in/app/case_number_pdf/2017:DHC:8123-DB/SRB09032017CW96642015_160057.pdf

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