Facts of the Case

The appeals were filed by the Union of India through the Department of Sports, 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 relating to Assessment Years 2010–11 and 2008–09. The Tribunal had dismissed the appeals at the threshold 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. The Organising Committee had subsequently been disbanded with the permission of the Government of India, following which the Union of India stepped in to represent its interests.

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 deserved 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 entity and consequently became the aggrieved party entitled to pursue pending tax litigation. It was argued that dismissal of the appeals on the technical ground of locus deprived the appellant of adjudication on merits and resulted in grave prejudice. The appellant therefore sought remand of the appeals to the Tribunal for decision on merits.

Respondent’s Arguments

The Revenue initially defended the order of the Tribunal dismissing the appeals on the ground of lack of locus. However, upon seeking instructions, the learned counsel for the Revenue fairly submitted 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 dismissed the appeals solely on the ground that the Union of India was not an aggrieved party. The Court recorded the submission of the Revenue that the matters could be remanded for adjudication on merits. Accepting the said submission, the Court held that in the interest of justice, the appeals before the Tribunal deserved to be restored and decided in accordance with law, particularly in view of the fact that the Organising Committee had been disbanded and the Union of India had stepped into its shoes.

Important Clarification

The Court clarified that it had not examined the merits of the tax issues involved in the appeals 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 orders of the Income Tax Appellate Tribunal dismissing ITA Nos. 1677/Del/2019 and 1678/Del/2019 for Assessment Years 2010–11 and 2008–09 were 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/1769680912_UNIONOFINDIATHROUGHDEPARTMENTOFSPORTSMINISTRYOFYOUTHAFFAIRSANDSPORTSVsDY.DIRECTOROFINCOMETAXEXEMPTIONINV.CIRCLEII.pdf

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