Cargill India Private Limited Vs Central Board Of Direct Taxes (Delhi High Court)
Delhi High Court held that relaxation of conditions prescribed under rule 9C of the Income Tax Rules is discretionary power and is not amenable to judicial review unless the court finds that exercise is capricious, malafide, arbitrary and/or unreasonable.
Facts- The petitioner had earlier filed an application dated 21.06.2018 seeking relaxation of the conditions prescribed under Rule 9C of the Income Tax Rules 1962 read with Section 72A of the Income Tax Act, 1962 seeking permission to carry forward all losses of the companies that had amalgamated with the petitioner, for an extended period of three years. The said application was rejected by the impugned order. The petitioner had, thereafter, requested for reconsideration of the petitioner’s request for relaxation, which was also rejected and the same was communicated to the petitioner by the impugned communication dated 30.06.2021. Thus, essentially, the petitioner seeks to assail the impugned order dated 25.10.2019 rejecting the petitioner’s requests for relaxation of the conditions as prescribed under Rule 9C of the Rules.
The only controversy that requires to be considered is whether the impugned order rejecting the petitioner’s request for relaxation of the conditions under Rule 9C of the Rules is arbitrary, unreasonable, and contrary to law.
