PCIT Vs Satish Kumar (Delhi High Court)
Procedural History & Facts: The Revenue filed an application (CM APPL. 31455/2026) under Section 5 of the Limitation Act, Section 151 of the Code of Civil Procedure, 1908, and Section 260(2A) of the Income Tax Act, 1961, seeking condonation of a 77-day delay in re-filing an appeal (ITA 384/2026) against an ITAT order dated 26.09.2025.
Findings & Directions: The High Court condoned the 77-day delay in re-filing and admitted the appeal on four substantial questions of law:
Whether the ITAT was legally justified in rejecting multiple Revenue grounds without giving reasons or discussion.
Whether the ITAT was legally justified in deleting Section 69A additions regarding demonetisation-era cash deposits.
Whether the ITAT correctly held that the increased tax rate of 60% applies from 01.04.2017.
Whether the Section 115BBE amendment under the Taxation Laws (Second Amendment) Act, 2016 (published 15.12.2016) applying an enhanced 60% tax rate can apply to transactions prior to 15.12.2016.
The High Court issued notice through all permissible modes, returnable on 06.10.2026.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Allowed, subject to all just exceptions.
2. Application stands disposed of.
CM APPL. 31455/2026 [Delay in re-filing]
3. Instant application has been filed under Section 5 of limitation Act read with Section 151 of the Code of Civil Procedure Act, 1908 read with Section 260(2A) of the Income Tax Act, 1961 seeking condonation of delay in re-filing the appeal.
4. For the reasons stated in the application, the delay of 77 days in re-filing the appeal is condoned.
5. Application stands disposed of.
ITA 384/2026
6. The following substantial questions of law arise out of the order dated 26.09.2025 passed by the Income Tax Appellate Tribunal, Delhi Bench “G” New Delhi (hereinafter referred to as ‘the Tribunal’) for our consideration:
i. Whether the Tribunal was legally justified in rejecting the Revenue’s multiple grounds in a single paragraph without giving any reasons or making discussion?
ii. Whether on the facts and circumstances of the case and in law, the Tribunal was legally justified in deleting the addition made under Section 69A of the Income Tax Act, 1961 [“Act”] in respect of the demonetization period which is disproportionate in comparison to the cash sale made during the same period in the earlier years?
iii. Whether the Income Tax Appellate Tribunal was legally correct and justified in holding that the increased rate of tax i.e. 60%, would be applicable from 01.04.2017?
iv. Given that the Taxation Laws (Second Amendment) Act, 2016 was published in the Official Gazette on 15.12.2016; whether the amendment under Section 115BBE of the Act of 1961, providing enhanced rate of tax (60%) can be applied on the transactions taking place prior to 15.12.2016?
7. Admit.
8. Issue notice through all permissible modes, returnable on 06.10.2026.
