No Income Tax Assessment Order Passed After ITAT’s Remand: Delhi HC Directs Acceptance of Return and Refund [Read Order]
The Delhi High Court directs refund as no assessment order was passed after ITAT’s remand, making proceedings time-barred.
![No Income Tax Assessment Order Passed After ITAT’s Remand: Delhi HC Directs Acceptance of Return and Refund [Read Order]](https://images.taxscan.in/h-upload/2025/07/18/2065074-delhi-hc-incometax-assessment-itat-taxscan.webp "No Income Tax Assessment Order Passed After ITAT’s Remand: Delhi HC Directs Acceptance of Return and Refund [Read Order]")
In a recent ruling, the Delhi High Court held that when no assessment order is passed after a remand by the Income Tax Appellate Tribunal (ITAT), the proceedings become time-barred, and the return of income must be accepted along with the issuance of a refund.
Acuity KP Solutions (India) Private Limited filed a writ petition seeking a direction to the income tax department to accept its return of income for Assessment Year 2007-08 and refund Rs. 67,86,402 with interest.
The company’s return had originally declared nil income and claimed a refund. The case was picked up for scrutiny, and the matter was referred to the Transfer Pricing Officer, who proposed an upward adjustment. A draft assessment was followed by a final assessment order dated 18.10.2011, which the petitioner challenged before the ITAT.
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The petitioner’s counsel argued that the ITAT had remanded the case back to the Assessing Officer on 20.07.2012 due to a violation of natural justice. More than a decade had passed since the remand, and no fresh assessment order was issued. The counsel submitted that the proceedings had become time-barred and that the refund, along with statutory interest, was due.
The department’s counsel did not deny the facts and admitted that the relevant files were untraceable. Despite multiple opportunities, no counter affidavit was filed. The department did not provide any evidence of a fresh order having been passed.
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The division bench comprising Justice Vibhu Bakru and Justice Tejas Karia held that it was clear no order had been passed after the ITAT’s remand. The court further held that the time limit for passing a fresh assessment had expired, making any further proceedings invalid.
The court referred to its earlier decision in Nokia India Pvt. Ltd. v. Deputy Commissioner of Income Tax, where it had ruled similarly. The court held that the return filed by the petitioner must be accepted, and the refund claimed should be processed with applicable interest.
The income tax department was directed to release the refund within twelve weeks. The writ petition was allowed.
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