CADENCE REAL ESTATES PRIVATE LIMITED vs. ACIT/DCIT & ORS.

PDF · subscribers
W.P.(C)-7584/2021HC Delhi2022:DHC:115630 March 20222 pages
AI SummaryPartly Allowed

What did the High Court hold?

The Delhi High Court clarified that its judgment dated December 15, 2021, had quashed notices under Section 148 of the Income Tax Act, 1961, that were issued on or after April 1, 2021. This was based on the finding that the respondents had not followed the mandatory procedure laid down in the Finance Act, 2021. The Court noted that notices issued prior to April 1, 2021, were not quashed by the said judgment. Therefore, the re-assessment notice dated March 31, 2021, issued for Assessment Year 2015-16, being prior to April 1, 2021, was not covered by the quashing order. The application for clarification was disposed of with this clarification.

What were the facts?

This matter concerns an application filed by the respondents-applicants (ACIT/DCIT & Ors.) seeking clarification of a previous judgment dated December 15, 2021, passed by the Delhi High Court in W.P.(C) 7584/2021. The respondents sought to clarify that the earlier judgment, which quashed certain re-assessment notices, was not applicable to a specific re-assessment notice dated March 31, 2021, issued under Section 148 of the Income Tax Act, 1961. This notice pertained to re-assessment proceedings for the Assessment Year 2015-16. The respondents stated that the fact of this particular notice being issued was inadvertently not brought to the Court's attention by either party during the original proceedings.

What were the issues?

1. Whether the judgment dated December 15, 2021, quashing notices under Section 148 of the Income Tax Act, 1961, issued on or after April 1, 2021, is applicable to a re-assessment notice dated March 31, 2021, for Assessment Year 2015-16. Assessee's Contention: The judgment dated December 15, 2021, should be clarified to exclude the notice dated March 31, 2021, from its ambit. The assessee's counsel accepted notice on behalf of the petitioner. Revenue's Contention: The respondents-applicants argued that the re-assessment notice dated March 31, 2021, was issued prior to April 1, 2021, and therefore, the earlier judgment, which quashed notices issued on or after April 1, 2021, due to non-compliance with the Finance Act, 2021, should not apply to this specific notice. They contended that the issuance of this notice was inadvertently not brought to the Court's notice.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

W.P.(C) 7584/2021

Page 1 of 2

$~13 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P.(C) 7584/2021

CADENCE REAL ESTATES PRIVATE LIMITED ..... Petitioner

Through Ms. Kavita Jha, Advocate with

Mr. Himanshu Aggarwal and

Mr. Udit Naresh, Advocates.

versus

ACIT/DCIT & ORS.

..... Respondents Through Mr. Zoheb Hossain, Sr. Standing Counsel with Mr. Vipul Agrawal and Mr. Parth Senwal, Advs.

Date of Decision: 30th March, 2022 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE DINESH KUMAR SHARMA

J U D G M E N T

MANMOHAN, J (Oral): 1. Present application has been filed by the respondents-applicants seeking clarification of the judgment dated 15 CM APPL.15682/2022

th December, 2021 passed in W.P.(C) 7584/2021 to the extent that the aforesaid judgment is not applicable to the re-assessment notice dated 31st

March, 2021 issued under Section 148 of the Income Tax Act, 1961 in respect of re-assessment proceedings for the Assessment Year 2015-16. 2022:DHC:1156-DB

W.P.(C) 7584/2021

Page 2 of 2

2.

Learned counsel for the respondents-applicants states that inadvertently the factum of issuance of notice dated 31st 3. Issue notice. Ms. Kavita Jha, learned counsel accepts notice on behalf of the non-applicant/petitioner. March, 2021 for the Assessment Year 2015-16 was not brought to the notice of this Court by either of the parties. 4. Admittedly, vide judgment dated 15th December, 2021 the Court had quashed the notices under Section 148 of the Act issued on or after 1st 5. Consequently, notices issued prior to 1 April, 2021 on the ground that the respondents had not followed the mandatory procedure laid down in the Finance Act, 2021. st

MANMOHAN, J

DINESH KUMAR SHARMA, J MARCH 30, 2022 AS

April, 2021 were not quashed. With the aforesaid clarification, the present application stands disposed of. 2022:DHC:1156-DB

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →