2025 (11) TMI 234

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.... issuance of directions to the Income Tax Department for giving effect to the order dated 20th January, 2023, passed by the Income Tax Appellate Tribunal (hereinafter as 'ITAT') (hereinafter, 'ITAT order'). 4. A brief background of the present petition is that, the Petitioner had filed his income tax returns for the Assessment Year 2016-2017, declaring total income as Rs 33,64,160/-. The same was scrutinized under Section 143(3) of the Income Tax Act, 1961 and thereafter, an Assessment order was passed by the Income Tax Department on 25th December, 2025 (hereinafter, 'Assessment order'). Thereafter, the tax of Rs. 36,85,243/- was also deposited, against the demand which was raised against the Petitioner. 5. The Petitioner had preferre....

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....gains allowable under section 54 of the I.T. Act. 6. In result, the appeal is partly allowed." 6. Thereafter, the order of the CIT Appeals was challenged by the Revenue Department and Petitioner/Assessee before ITAT. Vide ITAT order, which was passed under Section 254 of the Income Tax Act, 1961, the appeal was party allowed in the following terms: " [...] 8. We observe that the ld. CIT (Appeals) held that in the case of inherited property cost of acquisition as well as the cost of improvement by the previous owner of a capital asset the indexation shall be allowed during the year of acquisition or improvement by the previous owner or the year of inheritance by the person, who sold the property. The Hon'ble Bom....

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....etition was filed on 19th September, 2025, and was listed before the previous Bench on 08th October, 2025. Around the same time, when the writ petition was filed, notice was issued to the Petitioner to appear for computation of the amounts and on 14th October, 2025, the order has been passed by the Assessing Authority in the following terms: "2. Aggrieved, the assessment order, assessee filed an appeal before the Ld. CIT(A)-14, New Delhi on 24.01.2019. The Ld. CIT(A) vide order dated 05.12.2019, directed to AO to verify the indexed cost of acquisition of the property in the hands of appellant for bother portions i.e. part purchased by the appellant and the portion of the property that was inherited by him in F.Y. 2003-04 and enhanc....

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....structions in the matter, and is not aware of the order dated 14th October, 2025, passed by the Assessing Authority. 13. Heard. The Court notes with some consternation that it is only after the writ petition has been filed, that the Income Tax Department has got activated, and have issued notice to the Petitioner, as also computed the amount. 14. It is pertinent to note that the entire period after the ITAT order was passed in January, 2023, no action has been taken by the Income Tax Department. 15. Notably, the ITAT order clearly directed the Assessing Authority to have a re-look. Despite reminders being given by the Petitioner, the Income Tax Department has failed to take any action. 16. In this background, the statutory inter....