Facts of the Case

The Revenue/Appellants had filed Income Tax Appeals before the Delhi High Court. During the hearing, counsel appearing for the appellants informed the Court that an application seeking approval from the Central Board of Direct Taxes (CBDT) had already been submitted. However, the required approval had not been granted at the time of hearing.

Since the statutory or administrative approval necessary for pursuing the appeals was still pending, the Court considered whether the appeals could continue in the absence of such approval. 

Issues Involved

  1. Whether the Revenue’s appeals could be entertained and proceeded with when the requisite CBDT approval had not yet been granted.
  2. Whether the appeals should be dismissed or disposed of pending receipt of such approval.
  3. Whether liberty could be granted to the appellants to seek restoration/revival of the appeals after obtaining the required approval. 

Petitioner’s Arguments (Appellants/Revenue)

  • Learned counsel for the appellants submitted that an application seeking approval from the CBDT had already been filed.
  • It was contended that, despite filing the application, no approval had been granted up to the date of hearing.
  • The appellants sought consideration of the appeals in light of the pending approval process. 

Respondent’s Arguments

The order does not record any specific submissions made on behalf of the respondents. The Court’s decision was based primarily on the fact that the mandatory approval sought from the CBDT had not yet been obtained. 

Court Findings

The Delhi High Court noted the statement made by counsel for the appellants that an application seeking CBDT approval had been filed but that no approval had yet been granted.

The Court observed that, in the absence of such approval, it would not be appropriate to continue with the appeals at that stage.

Accordingly, the Court chose to dispose of the appeals while preserving the rights of the appellants. 

Court Order

The Delhi High Court disposed of ITA Nos. 917, 918 and 983 of 2009.

However, the Court granted liberty to the appellants to seek revival/restoration of the appeals if and when the required CBDT approval was subsequently granted.

Important Clarification

  • The Court did not decide any substantive question of law arising under the Income-tax Act.
  • The merits of the tax dispute were not examined.
  • The order is purely procedural and relates to the absence of CBDT approval.
  • The appellants were expressly granted the right to apply for revival of the appeals upon obtaining the necessary approval.
  • Therefore, the order should not be construed as an adjudication on any tax liability or legal issue involved in the underlying dispute.

Sections Involved

  • Income-tax Act, 1961 – Appellate provisions relating to filing of appeals before the High Court.
  • Administrative requirement concerning approval of the Central Board of Direct Taxes (CBDT) for pursuing the appeals.

(Note: The order does not specifically mention any particular section of the Income-tax Act.)

Link to download the order - https://delhihighcourt.nic.in/app/case_number_pdf/2009:DHC:13373-DB/AKS24092009ITA9182009_115918.pdf

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