CHESHTA CHOPRA vs. DY COMMISSIONER OF INCOME TAX & ORS.

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W.P.(C)/13367/2025HC DelhiDLHC01063434202501 September 2025Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petition based on the stand taken by the Revenue. The Revenue, through an email from the Deputy Director of Income Tax, CPC, Bengaluru, acknowledged that due to system issues, an incorrect demand was being reflected on the demand recovery module for AY 2017-18. The email stated that the Assessing Officer was requested to pass a rectification order under Section 154 of the Income Tax Act, 1961, to determine the correct demand. The Court closed the writ petition with a direction that the follow-up action by the respondents should be taken within a period of six weeks from the date of the order, as an outer limit. The email was taken on record. No specific finding was made on the merits of the dispute, but the matter was resolved by directing the Revenue to take corrective action.

What were the facts?

The petitioner, Cheshta Chopra, filed a writ petition before the Delhi High Court challenging an outstanding demand liability of Rs. 66,86,205/- for Assessment Year 2017-18 reflected on the income tax portal. The petitioner contended that the correct outstanding demand, as per the intimation issued under Section 143(1) of the Income Tax Act, 1961, was only Rs. 10,380/-. The petitioner sought a writ of mandamus to rectify the demand and a writ of certiorari to quash the interest accruing on the incorrect demand. The Revenue, through its counsel, placed an email on record from the Deputy Director of Income Tax, CPC, Bengaluru, acknowledging a system issue causing the incorrect demand reflection and stating that the Assessing Officer (AO) would pass a rectification order under Section 154.

What were the issues?

1. Whether the outstanding demand liability of Rs. 66,86,205/- for Assessment Year 2017-18 reflected on the income tax portal is erroneous, and if so, whether it should be rectified to Rs. 10,380/-, as per the intimation under Section 143(1) of the Income Tax Act, 1961? (Question of fact and law, concerning Section 143(1) and Section 154 of the Income Tax Act, 1961). Assessee's Contention: The petitioner argued that the demand on the portal was incorrect and significantly higher than the demand raised in the intimation under Section 143(1). The petitioner sought rectification of the demand and quashing of interest on the erroneous amount. Revenue's Contention: The Revenue, through an email from the CPC, acknowledged a system issue leading to the incorrect demand reflection and stated that the Assessing Officer would pass a rectification order under Section 154 of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154,Section 220(2)

AI-generated summary — verify with the full judgment below

$~57 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 13367/2025 CHESHTA CHOPRA .....Petitioner Through: Mr Vikram Kakar, Avdvocate. versus DY COMMISSIONER OF INCOME TAX & ORS. .....Respondents Through: Mr. Sunil Agarwal, SSC, Mr. Shivansh B. Pandya, Mr. Viplav Acharya, Ms. Priya Sarkar, JSCs and Mr. Utkarsh Tiwari, Advocate. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR O R D E R % 01.09.2025 CM APPL. 54800/2025(Exemption) 1. Exemption is allowed, subject to all just exceptions. 2. The application stands disposed of. W.P.(C) 13367/2025 3. The petitioner has filed this petition, with the following prayers:- “i. Issue a writ of mandamus or any other writ, order, or direction in the nature thereof directing Respondent No. 1 to rectify the outstanding demand liability on income tax portal of the Petitioner for assessment year 2017-18 which is presently appearing to be Rs.66,86,205/- whereas correct outstanding demand liability as per intimation issued by Respondent No.1 under S.143(1) of the income tax act 1961 is Rs 10,380/-. ii. Issue a writ of certiorari or any other writ, order, or direction in the nature thereof quashing the interest accruing on wrong outstanding demand liability of Rs66,86,205/- on the income tax portal of the Petitioner instead of Rs 10,380/- which is the correct outstanding demand liability as per intimation under S.143(1) of the Income Tax Act 1961.” 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 03/09/2025 at 12:17:44

4.

Mr Sunil Aggarwal, learned Sr Standing Counsel appearing for the Revenue has placed before us an email dated 29.08.2025 received by him from Deputy Director of Income Tax, Unit4, Centralised Processing Centre, Bengaluru, wherein following has been stated:- “Please refer to the W.P. filed by Cheshta Chopra [PAN: AUXPS8219E] before High Court of Delhi for A.Y.2017-18. The petitioner is aggrieved that incorrect demand of Rs.66,86,205/- along with interest u/s.220(2) of Rs.13.37,260/- is being reflected on demand recovery module whereas demand raised as per 143(1) intimation for A.Y.2017-18 was only Rs.10,380/-. 2. I am directed by Principal Director of Income-tax, CPC, Bengaluru to communicate as under:- "Due to system issues, incorrect demand is getting reflected for A.Y.2017-18 in the demand recovery module. The A.O. is requested to pass rectification order u/s.154 through ITBA determining correct demand. The A.O. may request for transfer of rectification rights through ITBA, if the rectification rights is still with CPC.” 5. In view of the stand taken by the aforesaid officer on behalf of the respondents, we close this writ petition with a direction that the follow up action shall be taken up by the respondents within a period of six weeks from today, (as prayed for by Mr Aggarwal) but as an outer limit. The aforesaid email is taken on the record. 6. The petition is disposed of in the above manner. V. KAMESWAR RAO, J VINOD KUMAR, J SEPTEMBER 01, 2025 M 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 03/09/2025 at 12:17:44

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