Income Tax Dept expresses Regret on filing Infructuous Appeal against Huawei Technologies: Delhi HC directs Dept to be More Careful [Read Order]

In a relief to Huawei Technologies, the division bench of the Delhi High Court has directed the income tax department to be more careful in filing appeal after the department expressed regret over the filing of an infructuous appeal.

The income tax department filed an appeal before the High Court challenging the order dated 9^th December 2020 passed by the Income Tax Appellate Tribunal for the Assessment Year 2009-10 granting relief to the assessee. The assessee has submitted a photocopy of the order dated 29th October, 2021 passed by the ITAT recalling its order vis-a-vis Grounds 6 and 7 in an application filed under Section 254(2) of the Income Tax Act, 1961.

In view of the above facts, Justice Manmohan and Justice Manmeet Pritam Singh Arorafound that though the present appeal is supported by an affidavit of the Commissioner of Income Tax dated 16^thJune, 2022, yet the subsequent order of the ITAT dated 29th October, 2021 was not disclosed by the Department either to its counsel or to this Court.

“In fact, this Court is of the view that there was no need for filing the present appeal in view of the subsequent order of the ITAT dated 29th October, 2021. At this stage, learned counsel for the appellant expresses regret for filing an infructuous appeal,” the Court said.

The counsel appearing for the department expressed the regret for filing an infructuous appeal.

“Recording the aforesaid regret and directing the Income Tax Department to be more careful in future, this Court disposes of the present appeal and application as infructuous. It is clarified that if the appellant so desires, it is at liberty to file a separate appeal challenging the liability to deposit advance tax and interest thereon. At this stage, learned counsel for the appellant states that the appellant has filed seven other appeals with the Registry of this Court. Registry is directed to list the said seven appeals filed,” the High Court held.

Ms. Kavita Jha, Advocate with Mr. Udit Naresh, Advocates appeared for the assessee-Company.

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