Facts of the Case

The Commissioner of Income Tax (Revenue) filed multiple Income Tax Appeals before the Delhi High Court against Bharat Heavy Electricals Limited (BHEL). During the hearing, counsel appearing for the Revenue informed the Court that the appellant had not obtained the necessary approval from the Committee on Disputes (COD), which was then required for litigation between Government departments and Public Sector Undertakings.

Considering the absence of COD approval, the Revenue sought liberty to re-file the appeals after obtaining the requisite permission.

Issues Involved

  1. Whether the Revenue could pursue the appeals without obtaining prior approval from the Committee on Disputes (COD).
  2. Whether the appeals should be entertained in the absence of such approval.
  3. Whether liberty should be granted to the Revenue to re-file the appeals after obtaining COD clearance.

Petitioner’s (Revenue's) Arguments

  • The Revenue acknowledged before the Court that the necessary approval from the Committee on Disputes (COD) had not been obtained.
  • Counsel for the Revenue requested that permission be granted to re-file the appeals after securing the requisite approval from the COD.

Respondent’s Arguments

The order does not record any detailed submissions made on behalf of Bharat Heavy Electricals Limited (BHEL). The matter was disposed of primarily on the basis of the Revenue's admission regarding the absence of COD approval.

Court Findings / Observations

The Delhi High Court took note of the statement made by the Revenue that COD approval had not been obtained.

The Court further noted the fair statement made by the Revenue's counsel that, after obtaining such approval, permission may be granted to re-file the appeals.

In view of these submissions, the Court considered it appropriate to dispose of the appeals while preserving the Revenue's right to institute fresh proceedings after obtaining the requisite approval.

Court Order

The Delhi High Court disposed of the Revenue's appeals on account of the absence of Committee on Disputes (COD) approval.

However, liberty was expressly granted to the Revenue to re-file the appeals after obtaining the necessary approval from the Committee on Disputes.

Important Clarification

  • The Court did not adjudicate the merits of the tax dispute.
  • The appeals were not dismissed on merits.
  • The disposal was solely due to non-availability of COD approval.
  • Revenue was granted liberty to re-file the appeals after obtaining the requisite clearance.
  • Therefore, the order should not be treated as a precedent on any substantive issue under the Income-tax Act.

Sections Involved

The specific provisions of the Income-tax Act, 1961 involved in the underlying appeals are not discussed in the order.

However, the appeals were filed under:

  • Section 260A of the Income-tax Act, 1961 (Appeal to High Court)

The order primarily concerns the procedural requirement of obtaining Committee on Disputes (COD) approval before litigation between Government entities and Public Sector Undertakings.

Link to download the order –https://delhihighcourt.nic.in/app/case_number_pdf/2010:DHC:9993/MMH07092010ITA8142010_163703.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.