SUMIT GUPTA vs. DEPUTY COMMISSIONER OF INCOME TAX

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W.P.(C)/4504/2024HC DelhiDLHC01015950202422 August 2025Author: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR3 pages
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What did the High Court hold?

The Delhi High Court allowed the petition. The Court found that the notice dated March 30, 2023, issued under Section 148 of the Income Tax Act, 1961, for AY-2013-14, was indeed beyond the period of limitation. The Court noted that the Revenue did not seriously contest the petitioner's submission regarding the limitation period and the applicability of the judgment in Principal Commissioner of Income Tax-Central-1 v. Ojjus Medicare Pvt. Ltd. Consequently, the Court set aside the impugned notice dated March 30, 2023, and all consequential reassessment proceedings, including any orders passed thereof. The petition was disposed of as allowed.

What were the facts?

The petitioner, Sumit Gupta, filed a writ petition before the Delhi High Court challenging a notice issued under Section 148 of the Income Tax Act, 1961, dated March 30, 2023, and the consequential reassessment proceedings. The assessment year in question is AY-2013-14. The petitioner's primary contention is that the notice is barred by limitation as prescribed under Section 149, read with Section 153A and its fourth proviso. The petitioner also referred to a chart indicating that a search was conducted on October 7, 2022, and the relevant assessment year for that search is AY-2023-24. The respondent Revenue did not seriously contest the petitioner's submissions regarding the limitation period and the applicability of a previous judgment.

What were the issues?

1. Whether the notice dated March 30, 2023, issued under Section 148 of the Income Tax Act, 1961, for AY-2013-14, is barred by limitation under Section 149, read with Section 153A (fourth proviso)? Assessee's Contention: The notice is beyond the period of limitation prescribed by Section 149, read with Section 153A (fourth proviso), and is also hit by the judgment in Principal Commissioner of Income Tax-Central-1 v. Ojjus Medicare Pvt. Ltd. (2024 SCC OnLine Del 2439). Revenue's Contention: The Revenue did not seriously contest the submission made by the petitioner regarding the applicability of the judgment in Principal Commissioner of Income Tax-Central-1 v. Ojjus Medicare Pvt. Ltd.

Which sections of the Income-tax Act were involved?

Section 148,Section 149,Section 153A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~ 35 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 4504/2024 SUMIT GUPTA .....Petitioner Through: Mr. Nitin Kanwar, Ms. Parul Kanwar, Mr. Rajiv Kumar, Mr. Dushyant Kumar, Mr. Shivam Jain, Mr. Jiterndra Kumar, Advs. versus DEPUTY COMMISSIONER OF INCOME TAX .....Respondent Through: Mr. Ruchir Bhatia, SSC, Mr. Anant Mann, Mr. P. Gupta, JSCs Mr. Sourabh Gupta, SPC for R-2 CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR

O R D E R %

22.08.

2025 W.P.(C) 4504/2024, CM APPL. 18414/2024

1.

This petition has been filed by the petitioner with the following prayers: “1) It is therefore, prays that this Hon'ble Court may kindly be pleased to:-Issue a writ of PROHIBITION or any other appropriate writ, order or direction quashing the Impugned Notice u/s 148 dated 30.03.2023 and Consequential proceedings; 2) Issue a writ of PROHIBITION or any other appropriate writ, order or direction for staying the ongoing consequential reassessment proceedings u/s 147”

2.

The petition concerns the Assessment Year(AY)-2013-14. The This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/08/2025 at 12:53:12

submission is that the notice dated 30.03.2023 under Section 148 of the Income Tax Act, 1961, is beyond the period of limitation as prescribed under Section 149, 149(1) read with Section 153(A), fourth proviso and also the judgment of this Court in the case of Principal Commissioner of Income Tax-Central-1 v. Ojjus Medicare Pvt. Ltd. : 2024 SCC OnLine Del 2439. 3. In support of his submission, he has drawn our attention to page 44 of the petition which is a chart depicting that the search having been conducted on 07.10.2022, AY being 2023-24, which we reproduce as under : “For the search conducted on 07/10/2022 the Assessment Year will be 2023-24. Thus ten years from the End of Assessment Year, relevant to previous year in which search is conducted, will be: No. Assessment Year 1 2023-24 2 2022-23 3 2021-22 4 2020-21 5 2019-20 6 2018-19 7 2017-18 8 2016-17 9 2015-16 10 2014-15”

4.

The learned counsel for the respondent Revenue does not seriously contest the submission made by Mr. Kanwar about the applicability of the judgment in the case of Principal Commissioner of Income Tax-Central-1 v. Ojjus Medicare Pvt. Ltd. (supra).

5.

If that be so, the prayer as sought by the petitioner is liable to be granted. We accordingly set aside the notice dated 30.03.2023 and also consequential re-assessment proceedings and any order passed thereof. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/08/2025 at 12:53:12

6.

The petition is disposed of as allowed. V. KAMESWAR RAO, J VINOD KUMAR, J AUGUST 22, 2025 ss This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/08/2025 at 12:53:12

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