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IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Girish Kathpalia, JJ.
Principal Commissioner of Income Tax (central)-3 – Appellant
Versus
Bhilwara Energy Ltd. – Respondent
ITAs 409 of 2023, 410 of 2023, 411 of 2023 & 412 of 2023
Decided On : 28-07-2023
Condonation of Delay - Income Tax Appeals - The court allowed the condonation of delay in filing the appeals and dismissed the appeals as no substantial question of law arose for consideration.
Fact of the Case:
The appellant/revenue sought condonation of delay in filing and re-filing the appeals concerning Assessment Years 2014-15, 2015-16, 2017-18, and 2016-17. The issue for consideration was the deletion of disallowance under Section 14A of the Income Tax Act, 1961.
Finding of the Court:
The court allowed the condonation of delay but dismissed the appeals as no substantial question of law arose for consideration.
Issues: The main issue was whether the Tribunal was right in sustaining the deletion of disallowance under Section 14A of the Income Tax Act, 1961.
Ratio Decidendi: The court found that the issue was not substantial and was covered by previous decisions, and therefore, no substantial question of law arose for consideration.
Final Decision: The appeals were dismissed as no substantial question of law arose for consideration.
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J.: (Oral)
CM APPL. 38119/2023 in ITA 409/2023
CM APPL. 38122/2023 in ITA 410/2023
CM APPL. 38125/2023 in ITA 411/2023
CM APPL. 38128/2023 in ITA 412/2023
1. Allowed, subject to just exceptions.
CM APPL. 38117/2023 in ITA 409/2023
CM APPL. 38120/2023 in ITA 410/2023
CM APPL. 38123/2023 in ITA 411/2023
CM APPL. 38126/2023 in ITA 412/2023 [Application filed on behalf of the appellant/revenue seeking condonation of delay of 11 days in filing ITAs 409/2023 & 411/2023 and 02 days in filing ITAs 410/2023 & 412/2023]
2. These are the applications moved on behalf of the appellant/revenue seeking condonation of delay in filing the appeal.
2.1. According to the appellant/revenue, there is a delay of 2 days in filing ITAs 410/2023 & 412/2023, while in ITAs 409/2023 & 411/2023, there is a delay of 11 days.
3. For the reasons, mentioned in the applications, the delay is condoned.
4. The applications are disposed of, in the aforesaid terms.
CM APPL. 38118/2023 in ITA 409/2023
CM APPL. 38121/2023 in ITA 410/2023
CM APPL. 38124/2023 in ITA 411/2023
CM APPL. 38127/2023 in ITA 412/2023 [Applications filed on behalf of the appellant/revenue seeking condonation of delay of 118 days in re- filing]
5. These are the applications moved on behalf of the appellant/revenue seeking condonation of delay in re-filing the appeal. 5.1 According to the appellant/revenue, there is a delay of 118 days.
6. For the reasons given in the applications, the delay is condoned.
7. The applications are disposed of, in the aforesaid terms. ITAs 409/2023, 410/2023, 411/2023 & 412/2023
8. These appeals concern Assessment Years (AYs) 2014-15 (ITA 409/2023), 2015-16 (ITA 410/2023), 2017-18 (ITA 411/2023) and 2016-17 (ITA 412/2023).
9. Via these appeals, the appellant/revenue seeks to assail the common order of the Income Tax Appellate Tribunal [in short, "Tribunal"] dated 02.08.2022.
10. Mr Abhishek Maratha, senior standing counsel, who appears on behalf of the appellant/revenue, submits that the issue that arises for consideration is whether the Tribunal was right in sustaining the deletion of disallowance under Section 14A of the Income Tax Act, 1961 [in short, "Act"] in view of the fact that no income exempt from tax had been earned during the relevant period.
11. According to us, the issue is covered by the following decisions:
(i) Judgement dated 02.09.2015 passed in ITA 749/2014, titled Cheminvest Limited v. Commissioner of Income Tax-VI.
(ii) Commissioner of Income-tax, Central 1, Chennai v. Chettinad Logistics (P.) Ltd. [2017] 80 taxmann.com 221 (Madras).
(iii) Order dated 30.05.2023 passed in ITA Nos. 316/2023 and 317/2023, titled Principal Commissioner of Income Tax Delhi 4 v. IL And FS Energy Development Co Ltd.
12. Insofar as Chettinad Logistics (P.) Ltd. is concerned, one of us [i.e., Rajiv Shakdher, J.] was a member of the Bench.
12.1. Mr Maratha does not dispute that a Special Leave Petition (SLP) was preferred against the said judgment, which was dismissed via order dated 02.07.2018; which is reported in [2018] 95 taxmann.com 250 (SC). The order passed by Supreme Court reads as follows:
"1. The Special Leave petition is dismissed on the ground of delay as well as on merits."
13. Therefore, according to us, no substantial question of law arises for our consideration in the above-captioned appeals.
14. The appeals are, accordingly, dismissed.
The court's decision emphasized that no substantial question of law arose for consideration, leading to the dismissal of the appeals.
The absence of substantial question of law can lead to the closure of appeals.
The principle of condonation of delay and the requirement for a substantial question of law to arise for consideration in an appeal.
The court found that the issue was covered by previous judgments and no substantial question of law arose for consideration.
The court's decision was influenced by the absence of incriminating material in the mentioned Assessment Years and the coverage of the issue by the judgment of the coordinate bench of the Court and t....
The court has the discretion to allow condonation of delay in re-filing appeals and may grant liberty to file a writ petition based on previous judgments.
The court's decision was influenced by the applicability of previous judgments and the absence of a substantial question of law for consideration.
The court has the discretion to condone delay in re-filing appeals and may rely on previous decisions to close appeals.
The court has the discretion to condone delay and may dispose of appeals with a caveat for further steps against the respondent/assessee in case of any deletion of substantial additions.
The court's decision was influenced by its previous ruling on a similar issue, indicating the importance of consistency in judicial decisions.
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