Facts of the Case

The appellant, a Public Sector Undertaking, filed Income Tax Appeals before the Delhi High Court.

The appellant informed the Court that approval from the Committee on Disputes (COD) was mandatory before pursuing the appeals.

Although an application seeking COD approval had already been submitted, no approval had been granted by the competent authority.

In view of the absence of COD clearance, the matter came up before the Delhi High Court for consideration. 

Issues Involved

  1. Whether an Income Tax Appeal filed by a Public Sector Undertaking could proceed without obtaining prior approval from the Committee on Disputes (COD).
  2. Whether the appeals were maintainable in the absence of COD clearance.
  3. Whether liberty should be granted to revive the appeals upon obtaining such approval. 

Appellant’s Arguments

  • The appellant submitted that it was a Public Sector Undertaking.
  • COD approval was required before pursuing the appeals.
  • An application for obtaining such approval had already been made.
  • However, no approval had been granted till the date of hearing.

Respondent’s Arguments

The order does not record any specific submissions made on behalf of the respondent. 

Court Findings

The Delhi High Court noted that:

  • The appellant was a Public Sector Undertaking.
  • Approval from the Committee on Disputes was a prerequisite for maintaining the appeals.
  • Though the appellant had applied for approval, no approval had been granted.

The Court found that in the absence of COD clearance, the appeals could not proceed. 

Court Order / Findings

  • The appeals were dismissed.
  • Liberty was granted to the appellant to seek revival of the appeals if COD approval was subsequently granted.
  • No adjudication was made on the merits of the underlying tax dispute.

Important Clarification

The Court did not examine any substantive tax issue.

The dismissal was procedural in nature and was based solely on the absence of Committee on Disputes (COD) approval.

The Court expressly preserved the appellant’s right to seek restoration or revival of the appeals if the requisite approval was granted subsequently.

Therefore, the order should not be treated as a precedent on any substantive provision of the Income Tax Act. 

Sections Involved

The order does not refer to any specific provision of the Income Tax Act, 1961.

The dispute primarily concerns:

  • Requirement of Committee on Disputes (COD) approval for litigation involving Public Sector Undertakings.
  • Maintainability of appeals filed without obtaining COD clearance.

Link to download the order - https://delhihighcourt.nic.in/app/case_number_pdf/2009:DHC:8944-DB/AKS09122009ITA13712009_163346.pdf

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