W.P.(C)/12177/2026 of KOMMIT TECHNO LEGAL LLP Vs DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE & ANR. on 1 September 2026

O R D E R

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01.09.2026

1. By way of the present writ petition the petitioner has challenged communication/order dated 20.07.2026 issued by Department for Promotion of Industry and Internal Trade (hereinafter referred to as ‘the Department’), whereby the application of the petitioner seeking Tax Exemption under Section 80-IAC of the Income Tax Act, 1961 (hereinafter referred to as ‘the act of 1961’) has been rejected by respondent no. 1.

2. Learned counsel for the petitioner submitted that the communication/order under consideration is non-speaking – it does not contain any reason for which the petitioner’s application has been turned down.

3. Mr. Rajesh Kumar, learned SPC for respondent no. 1, on the other hand submitted that if the communication dated 20.07.2026 is taken into account, the same, as a matter of fact, is not a rejection of the application, but the Department has simply intimated the petitioner to apply afresh, after three months, after showing some improvement.

4. Heard learned counsel for the parties. The impugned communication dated 20.07.2026 reads as under:

5. On perusal of the above communication, though we find that no reason has been assigned and as contended by Mr. Rajesh Kumar, the same may not be construed to be an order of rejection. We, however, feel that even while deferring the decision or requiring a unit to come after three months, respondent no. 1 should have indicated some reason or specified the area in which he wanted the applicant to improve.

6. Pursuant to Court’s askance, Mr. Rajesh Kumar, learned SPC for respondent no. 1requested the Deputy Director of the Department to remain present in the Court, who has appeared and apprised the Court that the following three criteria are necessary for grant of certificate under Section 80-IAC of the Act of 1961:

(i) Innovation,

(ii) Development or improvement of products/ processes/ services,

(iii) Employment generation or wealth creation.

7. He further submitted that so far as wealth creation and employment generation is concerned, the petitioner fulfils the requisite criteria, but it has to show some improvement in the field of innovation. Be that as it may, whether the petitioner fulfills the criteria or not, has to be adjudged by the Department and in the absence of requisite material, we do not propose to enter into such arena, at this juncture.

8. Having regard to facts and circumstances of the case and concerning the proactive and business friendly approach exhibited by Mr. Alam Ansari and with a view to ensure that provision of Section 80-IAC achieves its objective, we request the Deputy Director to have an interaction with the petitioner within a period of two weeks, so that the petitioner can know the area in which it needs to improve.

9. It shall be required of Mr. Alam Ansari, Deputy Director of the Department, to send an email to the petitioner at krishnagopal@singhandsingh.com, intimating the suitable time and date for interaction so that the petitioner can visit his office. The petitioner shall be free to file a representation before the Department, in order to show that it fulfils the requisite criteria.

10. The petitioner, if advised, may file a fresh application as well.

11. With the above observations and directions, the petition stands disposed of alongwith the pending application.

DINESH MEHTA, J.

VIMAL KUMAR YADAV, J. SEPTEMBER01, 2026/sds