VANI COMMERCIALS LIMITED vs. INCOME TAX OFFICER WARD 26(1), DELHI

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W.P.(C)/14665/2024HC DelhiDLHC01071713202416 December 2024Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE TUSHAR RAO GEDELA3 pages
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What did the High Court hold?

The Delhi High Court disposed of the writ petition. The Court noted that the issue raised by the petitioner regarding the jurisdiction of the Assessing Officer to initiate proceedings under Section 148 of the Income Tax Act, 1961, was covered by the Court's earlier decision in T.K.S. Builders Pvt. Ltd. V. Income Tax Officer Ward 25(3); Neutral Citation No. 2024:DHC:8330-DB. The Court granted the petitioner's request to leave open their rights to raise further issues before the Income Tax Authorities. Consequently, the petition was disposed of in light of the existing precedent, without delving into the merits of the jurisdictional challenge beyond acknowledging its coverage by prior rulings. No specific finding on the merits of the jurisdictional challenge was recorded in this order, other than it being covered by a previous judgment.

What were the facts?

The petitioner, Vani Commercials Limited, filed a writ petition before the Delhi High Court challenging a notice dated March 22, 2024, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2020-21. The primary ground for challenge was that the notice was issued by the Jurisdictional Assessing Officer (JAO) who allegedly lacked jurisdiction following a CBDT notification dated March 29, 2022. The High Court noted that a batch of similar matters were listed for hearing. The Court directed that reassessment proceedings could continue but any final order passed against the petitioner should not be given effect to until the next date of hearing. The petitioner's challenge was confined to the jurisdiction of the Assessing Officer to initiate proceedings under Section 148.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, dated March 22, 2024, for Assessment Year 2020-21, is liable to be quashed on the ground that it was issued by the Jurisdictional Assessing Officer (JAO) who lacked jurisdiction after the CBDT notification dated March 29, 2022? (Question of law) Assessee's Contention: The assessee argued that the impugned notice under Section 148 was issued by the JAO, who had no jurisdiction to do so after the CBDT notification dated March 29, 2022. The assessee sought to quash the notice and any consequential proceedings. Revenue's Contention: The judgment does not record any specific arguments made by the revenue on this issue. However, the revenue accepted notice and was represented by counsel.

Which sections of the Income-tax Act were involved?

Section 148

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$~79 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 14665/2024 & CM APPL. 61552/2024

VANI COMMERCIALS LIMITED

.....Petitioner

Through: Mr. Milind Gautam, Advocate

versus

INCOME TAX OFFICER WARD 26(1), DELHI .....Respondent Through: Mr. Sunil Agarwal, Sr. Standing Counsel with Mr. Shivansh B Pandya, Viplav Acharya, Mr. Priya Sarkar, JSCs and Mr. Utkarsh Tiwari, Advocate

CORAM:

HON'BLE THE ACTING CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

16.12.2024 1. The petitioner has filed the present petition inter alia praying as under:- “a) Pass an order quashing the Impugned Notice bearing no. ITBA/AST/S/148_112023-24/1063161469(1) dated 22/03/2024, issued to the Petitioner under Section 148 of Income Tax Act, 1961for Assessment year 2020-21.

b) Pass an order quashing the consequential proceedings as may be initiated by the Income Tax Department to give effect to the Impugned Notice.”

2.

The present petition was moved on 21.10.2024 when this Court had passed the following order:- 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 24/12/2024 at 12:02:10

“1. The petitioner has filed the present petition, inter alia, impugning the notice dated 22.03.2024 (hereafter the impugned notice) under Section 148 of the Income Tax Act, 1961 (hereafter the Act) on the ground that the same has been issued by the Jurisdictional Assessing Officer (hereafter the JAO), who has no jurisdiction to issue the same after the Central Board of Direct Taxes (CBDT) notification dated 29.03.2022.

2.

Issue notice.

3.

The learned counsel for the respondent accepts notice.

4.

This Court is informed that a batch of matters involving the similar issue, as involved in the present petition, is now listed for hearing on 16.12.2024.

5.

Accordingly, list the present petition also on 16.12.2024.

6.

In the meanwhile, the counter-affidavit, if any, be filed within four weeks from date. Rejoinder, if any thereto, be filed before the next date of hearing.

7.

The reassessment proceedings pursuant to the impugned notice may continue, however, in case any final order against the petitioner is passed, the same shall not be given effect to, till the next date of hearing.”

3.

It is apparent from the order that the petitioner had confined the present petition challenging the jurisdiction of the Assessing Officer to initiate proceedings under Section 148 of the Income Tax Act, 1962. 4. Concededly, the said issue is covered by the decision of this Court in T.K.S. Builders Pvt. Ltd V. Income Tax Officer Ward 25(3); Neutral Citation No. 2024:DHC:8330-DB. 5. Learned counsel for the petitioner requests that its rights to raise further issues before the Income Tax Authorities be left open. It is so directed. 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 24/12/2024 at 12:02:10

6.

In view of the above, the present petition is disposed of.

VIBHU BAKHRU, ACJ

TUSHAR RAO GEDELA, J DECEMBER 16, 2024 yrj

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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 24/12/2024 at 12:02:10

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