Facts of the Case

The appeals were filed by the Union of India through the Ministry of Youth Affairs and Sports challenging the common order dated 09.04.2025 passed by the Income Tax Appellate Tribunal in ITA Nos. 1677/Del/2019 and 1678/Del/2019 for Assessment Years 2010–11 and 2008–09. The Tribunal had dismissed the appeals at the threshold solely on the ground that the Union of India lacked locus standi and was not an aggrieved party. The appeals before the Tribunal arose from assessment orders passed under Section 143(3) of the Income-tax Act, 1961 in the case of the Organising Committee, Commonwealth Games-2010, Delhi. Subsequent to completion of the Games, the Organising Committee was disbanded with the permission of the Government of India.

Issues Involved

Whether the Union of India had locus standi to maintain appeals before the Income Tax Appellate Tribunal after the Organising Committee, Commonwealth Games-2010, Delhi was disbanded, whether dismissal of appeals on the ground of lack of locus without examining merits was sustainable, and whether the matters required remand for adjudication on merits.

Petitioner’s Arguments

The Union of India contended that upon disbanding of the Organising Committee, it stepped into the shoes of the said body and consequently became the aggrieved party entitled to pursue pending tax litigation. It was argued that dismissal of the appeals on a technical objection of locus deprived the appellant of adjudication on merits and resulted in manifest injustice. The appellant therefore sought restoration and remand of the appeals to the Tribunal for decision on merits.

Respondent’s Arguments

The Revenue initially supported the impugned order of the Tribunal. However, upon seeking instructions, learned counsel for the Revenue fairly submitted before the High Court that the matters could be remanded to the Tribunal for adjudication on merits.

Court Order / Findings

The Delhi High Court noted that the Tribunal had rejected the appeals solely on the ground that the Union of India was not an aggrieved party. The Court recorded the submission of the Revenue agreeing to remand. In view of the fact that the Organising Committee had been disbanded and the Union of India had stepped into its shoes, the Court held that the appeals deserved to be restored and adjudicated on merits. The Court therefore set aside the impugned ITAT orders and remanded the appeals for fresh decision in accordance with law.

Important Clarification

The Court clarified that it had not expressed any opinion on the merits of the tax issues involved and that all contentions of both parties were left open to be urged before the Income Tax Appellate Tribunal. The Tribunal was directed to decide the appeals strictly in accordance with law.

Final Outcome

The appeals were disposed of. The common order dated 09.04.2025 passed by the Income Tax Appellate Tribunal dismissing ITA Nos. 1677/Del/2019 and 1678/Del/2019 for Assessment Years 2010–11 and 2008–09 was set aside. The matters were remanded to the Tribunal with a direction to decide the appeals on merits in accordance with law. All pending applications were disposed of as infructuous.

Link to download the order - https://www.mytaxexpert.co.in/uploads/1769680961_UNIONOFINDIAMINISTRYOFYOUTHAFFAIRSANDSPORTSGOVT.OFINDIAVsADDITIONALDIRECTOROFINCOMETAXEXEMPTIONRANGEIINEWDELHI.pdf

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