Case Law Details
PCIT – Central Vs Ashok Kumar Singh (Delhi High Court)
Introduction: In a recent judgment, the Delhi High Court, in the matter of PCIT – Central vs. Ashok Kumar Singh (ITA 754/2023), addressed an application seeking condonation of delay in re-filing the appeal on behalf of the appellant/revenue. The court, having considered the circumstances, inclined to condone the delay, leading to the disposal of the application.
Background: The appeal in question pertains to the Assessment Year 2014-15 and challenges the order dated 19.04.2023 passed by the Income Tax Appellate Tribunal (“Tribunal”). The Commissioner of Income Tax (Appeals) (“CIT(A)”), in an earlier order dated 23.08.2021, had deleted the addition made by the Assessing Officer on a protective basis. The substantial addition was against the company Everbez Business Inc., in which the respondent/assessee, Ashok Kumar Singh, was a director and sole shareholder. Everbez was under proceedings related to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“2015 Act”).
Court Proceedings: The Tribunal upheld the CIT(A)’s order, prompting the appellant/revenue to file the instant appeal. During the proceedings, Mr. Ruchir Bhatia, learned senior standing counsel, suggested closing the appeal with liberty for the appellant/revenue to approach the Court again if unsuccessful in proceedings against the respondent/assessee concerning Everbez under the 2015 Act.
Court’s Decision: The court agreed with Mr. Bhatia’s suggestion and accordingly disposed of the appeal, providing liberty to the appellant/revenue for future recourse. This decision reflects a pragmatic approach, recognizing the ongoing proceedings against the respondent/assessee in connection with Everbez.
Conclusion: The Delhi High Court’s decision in the PCIT – Central vs. Ashok Kumar Singh case demonstrates the court’s willingness to consider the circumstances surrounding the appeal, leading to the condonation of delay and subsequent disposal of the application. The decision also emphasizes a practical resolution by allowing the appellant/revenue the option to reapproach the Court based on the outcome of proceedings related to Everbez Business Inc. under the 2015 Act
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This is an application seeking condonation of delay in re-filing the appeal, on behalf of the appellant/revenue.
2. According to the appellant/revenue, there is a delay of 40 days re-filing the appeal.
3. Having regard to the period involved, we are inclined to condone the delay.
4. The application is, accordingly, disposed of.
ITA 754/2023
5. This appeal concerns Assessment Year [AY] 2014-15.
6. Via the instant appeal, the appellant/revenue seeks to assail the order dated 19.04.2023 passed by the Income Tax Appellate Tribunal [in short “Tribunal“].
7. The Commissioner of Income Tax (Appeals) [in short, “CIT(A)”], via the order dated 23.08.2021, deleted the addition made by the Assessing Officer (AO), albeit on protective basis, amounting to Rs. 2,75,75,955/- on the ground that a substantive addition was being made against the company in which the respondent/assessee was a director and a sole shareholder, i.e., Everbez Business Inc. [in short “Everbez”] The record shows that Everbez was being proceeded under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 [in short “2015 Act”].
8. The said order of the CIT(A) has been sustained by the Tribunal via the impugned order.
9. Mr Ruchir Bhatia, learned senior standing counsel states that the best way forward would be to close the instant appeal, with liberty to the appellant/revenue to approach the Court, in case the appellant/revenue were to fail in the proceedings taken out against the respondent/assessee, concerning Everbez under the 2015 Act.
10. We tend to agree with Mr Bhatia. Accordingly, the appeal is closed with liberty as prayed for.
11. The registry will dispatch a copy of the order to the respondent/assessee via all modes, including email. The appellant/revenue will also ensure that a copy of this order is served on the respondent/assessee.
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