Facts of the Case

The Commissioner of Income Tax filed multiple income tax appeals against Bharat Heavy Electricals Limited (BHEL) before the Delhi High Court. During the course of hearing, learned counsel appearing on behalf of the Revenue submitted that the appellant had not obtained approval from the Committee on Disputes (COD), which was required at the relevant time for pursuing litigation involving Government Departments and Public Sector Undertakings.

The Revenue further stated that after obtaining the requisite approval from the Committee on Disputes, permission may be granted to re-file the appeals. In view of the said submission, the Court considered the matter and proceeded to dispose of the appeals while preserving the Revenue's liberty to pursue the same after obtaining the necessary approval.

Issues Involved

  1. Whether the Revenue could maintain and prosecute the income tax appeals without obtaining prior approval from the Committee on Disputes (COD).
  2. Whether the Revenue should be granted liberty to re-file the appeals after obtaining the requisite COD approval.
  3. Whether the appeals were liable to be disposed of on account of non-compliance with the COD approval requirement.

Petitioner’s Arguments (Revenue)

• The Revenue submitted that approval from the Committee on Disputes (COD) had not been obtained before filing and prosecuting the appeals.

• Learned counsel for the Revenue fairly stated before the Court that after obtaining the necessary COD approval, permission may be granted to re-file the appeals.

• The Revenue requested that its right to pursue the appeals be preserved upon fulfillment of the procedural requirement.

Respondent’s Arguments (BHEL)

The order does not record any detailed arguments advanced on behalf of Bharat Heavy Electricals Limited (BHEL). The matter was disposed of primarily on the statement made by learned counsel appearing for the Revenue regarding the absence of Committee on Disputes approval.

Court Findings

The Delhi High Court recorded the submission made by learned counsel for the Revenue that the appellant had not obtained approval from the Committee on Disputes (COD).

The Court further noted the statement of the Revenue that after obtaining the requisite approval, permission may be granted to re-file the appeals.

Taking the submission on record, the Court found it appropriate to dispose of the appeals while preserving the Revenue's liberty to re-file the same after obtaining the required approval.

The Court did not examine or adjudicate upon the merits of the tax disputes involved in the appeals.

Court Order

The Delhi High Court disposed of ITA Nos. 278/2010, 312/2010, 798/2010, 800/2010, 803/2010, 805/2010, 807/2010, 810/2010, 813/2010 and 814/2010 on the ground that the Revenue had not obtained approval from the Committee on Disputes (COD).

The Court granted liberty to the Revenue to re-file the appeals after obtaining the requisite COD approval.

Accordingly, all the appeals stood disposed of with the aforesaid liberty.

Important Clarification

• The Court did not decide any issue on merits relating to income tax liability.

• The disposal of the appeals was purely procedural and based on the absence of Committee on Disputes (COD) approval.

• The Revenue was specifically granted liberty to re-file the appeals after obtaining the requisite approval.

• No findings were rendered on any substantive question of law arising under the Income-tax Act, 1961.

• The order only dealt with maintainability of the appeals in the absence of COD clearance.

Sections Involved

Income-tax Act, 1961

• Section 260A – Appeal to High Court.

Link to download the order –https://delhihighcourt.nic.in/app/case_number_pdf/2010:DHC:9987/MMH07092010ITA7982010_163529.pdf

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