Income Tax Act Section 245W Appeal Must Be Filed By AO Not PCIT: Delhi High Court

The Delhi High Court on 19 August clarified that an appeal under Section 245W(1) of the Income Tax Act, 1961, must be filed by the Assessing Officer (AO), and not by the Principal Commissioner of Income Tax (PCIT).

Section 245W provides for appeals to the High Court against orders passed by the Income Tax Appellate Tribunal in cases covered by the provision.

A Division Bench comprising Justices Dinesh Mehta and Rajneesh Kumar Gupta made the observation while dismissing an appeal filed by the PCIT against Goldera International. It observed:

“Having gone through sub-section (1) of Section 245W of the Act of 1961, we are of the considered view that the submission made by Mr. Dharan Gandhi, learned Counsel for the respondent is correct,”

Counsel for the taxpayer raised a preliminary objection to the maintainability of the Revenue's appeal, arguing that the PCIT had filed the appeal, whereas Section 245W(1) contemplated an appeal by the AO.

The Bench examined Section 245W(1) and accepted the objection. It consequently dismissed the appeal on the ground that the PCIT had filed it instead of the AO, while granting the AO liberty to file a fresh appeal in accordance with law. It held:

“The present appeal stands dismissed for having been filed by wrong authority-PCIT. A liberty is however given to the AO to file a fresh appeal, in accordance with law.”

Accordingly, the High Court dismissed the appeal.

For Appellant: Mr. Puneet Rai, SSC with Mr. Ashvini Kr., Mr. Rishabh Nangia, JSCs, Mr. Nikhil Jain and Ms. Nancy Jain, Advocates

For Respondent: Mr. Dharan Gandhi and Mr. Subham Kumar, Advocates