CHARU CHAINS AND JEWELS PVT LTD vs. ASSISTANT COMMISSIONER OF INCOME TAX

PDF · subscribers
W.P.(C)/17202/2022HC DelhiDLHC01047480202220 March 2025Author: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA4 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the impugned notice dated 27.07.2022, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2015-16, is unsustainable. This decision is based on the concession made by the Revenue before the Supreme Court in Union of India and Others v. Rajeev Bansal (2024 SCC OnLine SC 2693). In that case, the Revenue conceded that the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) is inapplicable to notices issued for AY 2015-16. Consequently, all notices issued on or after April 1, 2021, for AY 2015-16, will not fall within the period prescribed under TOLA and must be dropped. The Court noted that a coordinate bench had also set aside similar notices for AY 2015-16 in Ibibo Group Pvt. Ltd. v. Assistant Commissioner of Income Tax Circle 10-1 & Anr. The Revenue's counsel confirmed this position. Therefore, the impugned notice and all consequential proceedings were set aside. The petition was allowed.

What were the facts?

The petitioner, Charu Chains and Jewels Pvt Ltd, challenged a notice dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961, and an order dated 27.07.2022 passed under Section 148A(d) of the Act, both pertaining to Assessment Year 2015-16. Initially, a notice under Section 148 was issued on 30.06.2021. This was followed by a fresh notice under Section 148A(b) on 20.05.2022, pursuant to Supreme Court directions in Union of India & Ors. v. Ashish Agarwal, which deemed earlier notices as Section 148A(b) notices. These proceedings were based on the premise that the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) was applicable. However, in a subsequent Supreme Court decision, Union of India and Others v. Rajeev Bansal, the Revenue conceded that TOLA was inapplicable to notices issued for AY 2015-16.

What were the issues?

1. Whether the impugned notice dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961, for AY 2015-16 is sustainable in light of the Revenue's concession in Union of India and Others v. Rajeev Bansal (2024 SCC OnLine SC 2693) that TOLA is inapplicable to notices issued for AY 2015-16. Assessee's Contention: The assessee argued that the impugned notice is unsustainable due to the Revenue's concession before the Supreme Court in the Rajeev Bansal case, which stated that TOLA is inapplicable to AY 2015-16, rendering notices issued on or after April 1, 2021, for this AY liable to be dropped. The assessee also relied on a coordinate bench decision in Ibibo Group Pvt. Ltd. v. Assistant Commissioner of Income Tax Circle 10-1 & Anr. [WP(C) 17639/2022] where similar notices for AY 2015-16 were set aside. Revenue's Contention: The learned counsel appearing for the Revenue confirmed the position taken in the Rajeev Bansal case and did not advance any arguments against the assessee's submissions.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A(d),Section 149,Section 151

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~58 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 17202/2022 CHARU CHAINS AND JEWELS PVT LTD .....Petitioner Through: Mr Rajat Navet with Mr Kushagra Pandit and Mr Rajat Rana, Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX.....Respondent Through: Mr Monica Benjamin with Ms Easha Kadian, Advocates. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA

O R D E R % 20.03.2025

1.

The petitioner has filed the present petition, inter alia, impugning a notice dated 27.07.2022 [impugned notice] issued under Section 148 of the Income Tax Act, 1961 [the Act] in respect of Assessment Year [AY] 2015-

16.

The petitioner also impugns an order dated 27.07.2022 passed under Section 148A(d) of the Act [impugned order].

2.

The Assessing Officer [AO] had issued a notice dated 30.06.2021 under Section 148 of the Act seeking to reopen assessments for AY 2015-

16.

Such notices were subject matter of challenge in various petitions filed before this court and other courts. By virtue of the decision of this court in Mon Mohan Kohli v. CIT [WP(C) No. 6176/2021] such notices were set aside as the same had been issued on the basis of the statutory regime for 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 01/07/2025 at 20:47:57

reopening the assessment as it existed prior to 31.03.2021. The said decision as well as such similar decisions were carried in appeal before the Supreme Court. In Union of India & Ors. v. Ashish Agarwal: 2022 SCC OnLine SC 543 the Supreme Court had issued directions in exercise of powers under Article 142 of the Constitution of India and all such notices were deemed to be notices under Section 148A(b) of the Act. Further directions were also issued for the AOs to provide the material on which the said notices were premised as required under Section 148A of the Act.

3.

Pursuant to the said decision in Union of India & Ors. v. Ashish Agarwal (supra), the AO had issued a fresh notice under Section 148A(b) of the Act on 20.05.2022. 4. The aforesaid proceedings were initiated on the premise that The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 [TOLA] was applicable and permitted issuance of such notices.

5.

However, in subsequent proceedings in Union of India and Others v. Rajeev Bansal: 2024 SCC OnLine SC 2693, the Revenue made a concession that TOLA was inapplicable to notices that were issued in respect of AY 2015-16. The relevant extract of the decision of the Supreme Court in Union of India and Others v. Rajeev Bansal (supra) is set out below: “(e) The Finance Act. 2021 ((2021) 432 ITR (Stat) 52) substituted the old regime for reassessment with a new regime. The first proviso to section 149 does not expressly bar the application of Taxation and other Laws (Relaxation and Amendment of Certam Provisions) Act, 2020. Section 3 of the Taxation and other Laws (Relaxation and Amendment of Certain 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 01/07/2025 at 20:47:57

Provisions) Act, 2020 applies to the entire Income-tax Act, including sections 149 and 151 of the new regime. Once the first proviso to section 149(1)(b) is read with Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30. 2021 pertaining to the assessment years 2013-2014, 2014- 2015, 2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment Year Within 3 Years Expiry of Limitation read with TOLA for (2) (3) Within Six Years (4) Expiry of Limitation read with TOLA for (4) (5) 2013-2014 31.03.2017 TOLA not applicable 31.03.2020 30.06.2021 2014-2015 31.03.2018 TOLA not applicable 31.03.2021 30.06.2021 2015-2016 31.03.2019 TOLA not applicable 31.03.2022 TOLA not applicable 2016-2017 31.03.2020 30.06.2021 31.03.2023 TOLA not applicable 2017-2018 31.03.2021 30.06.2021 31.03.2024 TOLA not applicable (f) The Revenue concedes that for the assessment year 2015- 2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.”

6.

In view of the above, the impugned notice is unsustainable. The learned counsel has also handed over a copy of the order passed by the coordinate bench of this court in Ibibo Group Pvt. Ltd. v. Assistant Commissioner of Income Tax Circle 10-1 & Anr. [WP(C) 17639/2022] wherein in similar facts the notices issued in respect of AY 2015-16 were set 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 01/07/2025 at 20:47:57

aside. The learned counsel appearing for the Revenue also confirms the same.

7.

The petition is allowed in the aforesaid terms. In view of the above, the impugned notice is set aside as well. Consequently, all proceedings pursuant thereto is also set aside. VIBHU BAKHRU, J TEJAS KARIA, J MARCH 20, 2025/tr Click here to check corrigendum, if any 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 01/07/2025 at 20:47:57

More judgments on Section 148

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

Recent GST High Court judgments

Search GST case law →