Kawatra Tent and Caterers Private Limited Vs Assistant Commissioner… — Income Tax | Delhi HC (2025)

Kawatra Tent and Caterers Private Limited Vs Assistant Commissioner… — Income Tax | Delhi HC (2025)

What the court decided

AI extract

Outcome

Exemption applications allowed and disposed; appeals disposed of with the two cross-objections (CO 138/DEL/2023 in ITA 2729/DEL/2023, AY 2019-20; CO 133/DEL/2023 in ITA 2606/DEL/2023, AY 2013-14) revived and remitted to the ITAT for fresh decision; all pleas left open.

Issue for consideration

Whether proceedings initiated under Section 153A of the Income Tax Act, 1961 are valid where the approval under Section 153D was obtained with regard to seven assessment years together rather than separately, as raised in the appellant's cross-objections before the Tribunal. +1 more

Court's answer

The cross-objections bearing 138/DEL/2023 in ITA No. 2729/DEL/2023 (AY 2019-20) and 133/DEL/2023 in ITA No. 2606/DEL/2023 (AY 2013-14) are revived and remanded to the ITAT, which shall decide the said issue (validity of Section 153A proceedings given the consolidated Section 153D approval) after hearing counsel for the parties, in accordance with law.

Ratio / Principle

All the pleas of the parties are left open to be canvassed before the ITAT.

Detailed headnote1 paragraphs

Delhi High Court (V. Kameswar Rao and Vinod Kumar, JJ.) disposed of ITA 599/2025, ITA 600/2025 and ITA 601/2025 filed by Kawatra Tent and Caterers Private Limited against the Assistant Commissioner of Income Tax, Central Circle 16, Delhi, challenging the Tribunal's orders dated 20.08.2025 deciding four ITAs across different assessment years. The appeals primarily concerned cross-objections in ITA Nos. 2729/DEL/2023 and 2606/DEL/2023 contesting the validity of proceedings initiated under Section 153A of the Income Tax Act, 1961, on the ground that the approval under Section 153D had been taken for seven assessment years together rather than separately. Although the Tribunal had recorded that no submissions supported the cross-objections, appellant's counsel asserted (on the authority of CA Kundan Wahi's account) that the cross-objections had been argued. The Court did not itself resolve the validity question: it revived cross-objections 138/DEL/2023 (AY 2019-20) and 133/DEL/2023 (AY 2013-14) before the ITAT, directing that the issue be decided after hearing both sides in accordance with law; all pleas were left open and the appeals disposed of. Exemption applications were likewise disposed. Respondent counsel referred to Pr. CIT-15 v. Shiv Kumar Nayyar, ITA 285/2024, as settling the approval-separateness question; the Court engaged with it only conditionally ('If that be so') and deferred the issue to the Tribunal.

$~90 to 92

IN THE HIGH COURT OF DELHI AT NEW DELHI

- ITA 599/2025

- ITA 600/2025

- ITA 601/2025

KAWATRA TENT AND CATERERS PRIVATE LIMITED

.....Appellant Through: Mr. Amit Sood and Mr. Aditya Jagia, Advs.

versus

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 16, DELHI

.....Respondent Through: Mr. Vipul Agarwal, SSC, Ms. Sakshi Sehawal, Mr. Akshat Singh, JSCs and Mr. Gaoraang Ranjan and Ms. Harshita Kotru, Advs.

CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR

O R D E R

% 12.11.2025

CM APPL. 70342/2025 in ITA 599/2025 CM APPL. 70343/2025 in ITA 600/2025 CM APPL. 70345/2025 in ITA 601/2025

Exemptions allowed, subject to all just exceptions.

The applications are disposed of.

ITA 599/2025

ITA 600/2025 ITA 601/2025

The challenge in these appeals is to orders dated 20.08.2025 whereby

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the Tribunal has decided the four ITAs, relatable to different assessment years. These appeals are primarily relatable to cross-objections in ITA Nos. 2729/DEL/2023 and 2606/DEL/2023.

The learned counsel for the appellant states that the challenge is primarily relatable to the cross-objections in which the appellant has challenged the validity of the proceedings initiated under Section 153A of the Income Tax Act, 1961 (“Act”) primarily on the ground that the approval under Section 153D of the Act was taken with regard to seven assessment years together and not separately as is contemplated in law laid down by this Court.

The learned counsel for the appellant would submit that though the Tribunal has in paragraph 7 recorded that no submission has been advanced in support of the cross-objections, he vehemently by drawing our attention to paragraph 19 and 20 of these appeals contend that as per the information given by Kundan Wahi, Chartered Accountant, who appeared for the appellant before the Tribunal, it is clear that Kundan Wahi had vehemently argued the cross-objections and also contested the appeal filed by the Revenue.

Mr. Agarwal states that the said aspect cannot be commented upon by him. His only submission is that as the law relatable to the validity of the proceedings initiated under Section 153A of the Act, on the ground the approval sought under Section 153D of the Act is relatable to seven AY’s together and not individually is well settled by the judgment of this Court in Pr. Commissioner of Income Tax-15 v. Shiv Kumar Nayyar, ITA 285/2024.

If that be so, appropriate shall be that the cross-objections more

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specifically the above issue should be decided by the Tribunal. For this purpose, we remand the cross-objections being 138/DEL/2023 in ITA No. 2729/DEL/2023 and 133/DEL/2023 in ITA No. 2606/DEL/2023 relatable to assessment years 2019-20 and 2013-14 respectively by reviving the same on the Board of the ITAT which shall decide the said issue after hearing the counsel for the parties, in accordance with law.

All the pleas of the parties are left open to be canvassed before the ITAT.

With the aforesaid observations, the appeal is disposed of.

V. KAMESWAR RAO, J

VINOD KUMAR, J

NOVEMBER 12, 2025 ss

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 02/12/2025 at 12:05:50