Delhi HC quashes seven ITAT orders in Patanjali tax case
The Delhi High Court cited procedural lapses, inconsistent hearing dates and inadequate reasoning in setting aside seven ITAT orders involving Patanjali Ayurved. The tax-search assessment appeals for multiple years will be reheard by a different tribunal bench; the court did not rule on the underlying merits.
What happened
Delhi High Court quashed seven ITAT orders involving Patanjali Ayurved, citing procedural lapses, inconsistent hearing dates and lack of reasoning. The
Key facts
- 7 ITAT orders quashed
- 7 appeals to be reheard
- 4 Patanjali appeals allowed and 3 Revenue cross-appeals dismissed in the set-aside order
- Assessment years 2013-14, 2014-15, 2015-16 and 2017-18
- Search conducted October 31-November 3, 2018
What changed
Delhi High Court quashed seven ITAT orders involving Patanjali Ayurved, citing procedural lapses, inconsistent hearing dates and lack of reasoning. The tax-search assessment appeals will be reheard by a different ITAT bench, with no High Court finding on the underlying merits.
Why this matters
Patanjali faces prolonged tax-case uncertainty and should prepare for a full rehearing while maintaining compliance documentation and operational contingency plans.
What to watch
- Constitution and hearing schedule of the replacement ITAT bench.
- Disclosure of the disputed assessment years, tax-demand amount, penalties and any existing deposits or provisions.
- Whether the department seeks to challenge any part of the High Court ruling before the Supreme Court.
- Fresh ITAT findings on evidence, unexplained income, deductions or search-assessment procedure.
- Changes in Patanjali's contingent-liability disclosures, cash-tax payments or auditor emphasis in annual filings.