Pr. Commissioner of Income Tax, DELHI-7 Vs Sun Infraestate Pvt. Ltd. — Income Tax | Delhi HC (2025)

Pr. Commissioner of Income Tax, DELHI-7 Vs Sun Infraestate Pvt. Ltd. — Income Tax | Delhi HC (2025)

What the court decided

AI extract

Outcome

Both appeals (ITA 198/2025 and ITA 194/2025) and all pending applications disposed of by consent: the ITAT order dated 02.07.2024, the NFAC orders dated 17.03.2023 and the assessment orders dated 29.03.2022 (AY 2016-17) and 21.09.2021 (AY 2018-19) set aside; matters remanded to the Assessing Officer for fresh assessment; all rights and contentions of the parties reserved.

Issue for consideration

Whether the additions in the assessment orders passed by the National Faceless Assessment Centre for AYs 2016-17 and 2018-19, relating to amounts received by the respondent (assessee) from M/s Grand Realcon Pvt. Ltd., were sustainable. +1 more

Court's answer

By consent, and expressly without examining the merits of the decision rendered by the ITAT, the Court set aside the impugned ITAT order dated 02.07.2024, the NFAC orders dated 17.03.2023, the assessment order dated 29.03.2022 (AY 2016-17) and the assessment order dated 21.09.2021 (AY 2018-19), and remanded the matters to the Assessing Officer for consideration afresh.

Ratio / Principle

Recording the counsel's agreed position that complete enquiries had not been conducted, the Court endorsed remand to the Jurisdictional Assessing Officer to examine all issues and pass fresh assessment orders in accordance with law; the order was passed with the consent of counsel and all rights and contentions of the parties were reserved.

Detailed headnote1 paragraphs

Income Tax Appeals - Section 260A, Income Tax Act, 1961 - Pr. Commissioner of Income Tax, Delhi-7 v. Sun Infraestate Pvt. Ltd. (ITA 198/2025 and ITA 194/2025; Delhi High Court; Vibhu Bakhru and Tejas Karia, JJ.; 04.07.2025) - Revenue appealed against the ITAT's common order dated 02.07.2024 (ITA Nos. 1469 and 1470/Del/2023) for AYs 2016-17 and 2018-19, which had faulted additions made by the National Faceless Assessment Centre solely because M/s Grand Realcon Pvt. Ltd. did not respond to a summons under Section 133(6) of the Act, without an opportunity to the assessee to produce that entity's principal officer - Counsel were agreed that complete enquiries had not been conducted - With consent, and without examining the merits of the ITAT's decision, the Court set aside the ITAT order, the NFAC orders dated 17.03.2023 and the assessment orders dated 29.03.2022 and 21.09.2021, remanding the matters to the Jurisdictional Assessing Officer for examination of all issues and fresh assessment orders in accordance with law - All rights and contentions reserved; appeals and pending applications disposed of.

$~13 & 19

* IN THE HIGH COURT OF DELHI AT NEW DELHI

- ITA 198/2025 and CM APPLs. 38485-87/2025

PR. COMMISSIONER OF INCOME TAX, DELHI-7.....Appellant Through: Mr. Puneet Rai, SSC with Mr. Ashvini Kumar, Mr. Rishabh Nangia, Mr. Gibran, Mr. Nikhil Jain, Ms. Srishti Sharma and Mr. Pratham Aggarwal, Advocates.

versus

SUN INFRAESTATE PVT. LTD. .....Respondent Through: Mr. Ved Jain, Mr. Nischay Kantoor, Ms. Soniya Dodeja and Mr. Sarthak Abrol, Advs. AND

- ITA 194/2025 and CM APPL. 38218-19/2025

PR. COMMISSIONER OF INCOME TAX, DELHI-7.....Appellant

Through: Mr. Puneet Rai, SSC with Mr. Ashvini Kumar, Mr. Rishabh Nangia, Mr. Gibran, Mr. Nikhil Jain, Ms. Srishti Sharma and Mr. Pratham Aggarwal, Advocates.

versus

SUN INFRAESTATE PVT. LTD. .....Respondent Through: Mr. Ved Jain, Mr. Nischay Kantoor, Ms. Soniya Dodeja and Mr. Sarthak Abrol, Advs.

CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R

% 04.07.2025

The Revenue has filed the present appeals under Section 260A of the Income Tax Act, 1961 [ the Act ], inter alia, impugning an order dated 02.07.2024 [ impugned order ] passed by the learned Income Tax Appellate

This is a digitally signed order.

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Tribunal [ ITAT ] in respect of assessment years [ AYs ] 2016-17 and 201819. The said common order was passed by the learned ITAT in ITA No.1469/Del/2023 and ITA 1470/Del/2023. These appeals were preferred by the Revenue against the separate orders passed by the National Faceless Appeal Centre [ NFAC ] on 17.03.2023.

The principal question to be addressed in the present appeals relates to assessment orders passed by the National Faceless Assessment Centre in respect of amounts received by the respondent [ Assessee ] during the previous year relevant to AYs 2016-17 and 2018-19 from one M/s Grand Realcon Pvt. Ltd.

The learned ITAT had faulted the assessment unit for making an addition on the sole basis that the concerned entity [M/s Grand Realcon Pvt. Ltd.] had not responded to the summons under Section 133(6) of the Act without giving an opportunity to the respondent to produce the principal officer of the said entity.

The learned counsel are ad idem that complete enquiries had not been conducted.

After some arguments, the counsels further agree that the matter be remanded to the Jurisdictional Assessing Officer for examining all the issues and passing fresh assessment orders in accordance with law. This course commends itself to this court. Thus, without examining the merits of the decision rendered by the ITAT, we consider it apposite to set aside the impugned order passed by the ITAT; orders dated 17.03.2023 passed by the NFAC; the assessment order dated 29.03.2022 in respect of AY 2016-17, and the assessment order dated 21.09.2021 in respect of AY 2018-19, and, remand the matter to the Assessing Officer for consideration afresh.

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/07/2025 at 12:37:53

This order is passed with the consent of the learned counsel for the parties.

All rights and contentions of the parties are reserved.

The appeals and all pending applications are disposed of.

VIBHU BAKHRU, J

TEJAS KARIA, J

JULY 4, 2025 RK Click here to check corrigendum, if any

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/07/2025 at 12:37:53