Case Law Details

Case Name : PCIT Vs Amrapali Sapphire Developers Pvt Ltd (Delhi High Court)
Appeal Number : ITA 329/2022
Date of Judgement/Order : 21/12/2023
Related Assessment Year :

PCIT Vs Amrapali Sapphire Developers Pvt Ltd (Delhi High Court)

Introduction: The Delhi High Court recently addressed appeals related to Assessment Years 2010-11 to 2014-15 in the case of PCIT vs. Amrapali Sapphire Developers Pvt Ltd. The appeals centered around orders passed by the Income Tax Appellate Tribunal (ITA) and were complicated by the ongoing Corporate Insolvency Resolution Process (CIRP) involving companies from the Amrapali Group.

Detailed Analysis: The appeals (ITA Nos. 329/2022, 337/2022, 340/2022, 341/2022, 343/2022, 345/2022, and 646/2023) contested orders from the Tribunal dated 03.2021, 08.04.2021, and 17.06.2021. The Tribunal had dismissed the appeals filed by both the assessee and the revenue due to the respondent/assesse undergoing CIRP.

Despite repeated attempts to gather information on the insolvency proceedings and the relevant parties, the court faced challenges in obtaining clarity. It was noted that the proceedings regarding the Amrapali Group were under consideration by the Supreme Court.

After more than a year of uncertainty, the court decided to close the appeals, granting liberty to the appellant/revenue to approach the court for revival when there is clarity in the matters related to the Amrapali Group. As a result, pending applications, including those concerning the condonation of delay in re-filing the appeal, were closed.

Conclusion: The Delhi High Court’s decision reflects the complexity introduced by insolvency proceedings, especially when involving entities like the Amrapali Group. The grant of liberty to revive the appeal acknowledges the ongoing challenges and ensures that the revenue can pursue legal remedies when the relevant details become clear. This case underscores the court’s pragmatic approach in the face of intricate legal situations, allowing parties the opportunity to seek redress as circumstances evolve. 


1. These appeals concern Assessment Years (AYs) 2011-12 [ITA No. 329/2022], 2014-15 [ITA No. 337/2022], 2012-13 [ITA No. 340/2022], 2011-12 [ITA No.341/2022], 2010-11 [ITA No. 343/2022], 2012-13 [ITA 345/2022] and 2011-12 [ITA No. 646/2023].

2. While ITAs 329/2022, 337/2022, 340/2022 assail the order dated 03.2021 passed by the Income Tax Appellate Tribunal [in short, “Tribunal”], ITA 341/2022, 343/2022 and 345/2022 assail the order dated 08.04.2021 and ITA 646/2023 assails the order dated 17.06.202 1.

2.1. In the orders dated 08.04.2021 and 17.06.2021, the Tribunal has relied upon the order dated 17.03.2021 and dismissed the appeals filed by the assessee and the revenue in view of the respondent/assesse undergoing Corporate Insolvency Resolution Process (CIRP).

3. We have been informed several times by the learned counsels appearing on behalf of the appellant/revenue that the respondents/companies, which are the part of the Amrapali Group, are undergoing insolvency proceedings.

4. We have also asked counsel for the appellant/revenue time and again as to the person upon whom notice needs to be served.

5. It was also conveyed to us that proceedings qua Amrapali Group are being looked at by the Supreme Court.

6. Since more than one year has passed without definite information, we are inclined to close the instant appeals, with liberty to the appellant/revenue to approach the court for revival, albeit as per law, as and when they obtain clarity in the above-captioned matters.

7. Consequently, the pending applications concerning condonation of delay in re-filing the appeal (i.e., CM APPL. 60497/2023 in ITA 646/2023) shall stand closed.

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