SHIVPRIYA TRADING AND FINANCE CO. PVT. LTD. vs. INCOME TAX OFFICER, WARD 23(1), DELHI

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W.P.(C)/14735/2024HC DelhiDLHC01072287202416 December 2024Bench: HON'BLE MR. JUSTICE TUSHAR RAO GEDELA,HON'BLE THE ACTING CHIEF JUSTICE3 pages
AI SummaryRemanded

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 issue the notice under Section 148 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 petitioner requested that its rights to raise further issues before the Income Tax Authorities be left open, which the Court directed. Therefore, the petition was disposed of in terms of the existing legal position and with liberty to the petitioner to pursue other remedies.

What were the facts?

The petitioner, Shivpriya Trading and Finance Co. Pvt. Ltd., filed a writ petition before the Delhi High Court challenging a notice dated 28.08.2024 issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2023-24. The petitioner contended that the Assessing Officer lacked jurisdiction to initiate reassessment proceedings following a notification by the Central Board of Direct Taxes (CBDT) dated 29.03.2022. The High Court noted that a batch of similar matters was listed for hearing. The Court had previously ordered that reassessment proceedings could continue, but any adverse order would not be given effect to until the next hearing. The petitioner subsequently confined the petition solely to the issue of the Assessing Officer's jurisdiction.

What were the issues?

1. Whether the Assessing Officer had the jurisdiction to issue a notice under Section 148 of the Income Tax Act, 1961, for reassessment proceedings for AY 2023-24, in light of the CBDT notification dated 29.03.2022? (Question of law) Assessee's Contention: The petitioner argued that after the issuance of the CBDT notification dated 29.03.2022, the Assessing Officer had no jurisdiction to initiate any reassessment proceedings. The petitioner relied on the decision in T.K.S. Builders Pvt. Ltd V. Income Tax Officer Ward 25(3); Neutral Citation No. 2024:DHC:8330-DB. Revenue's Contention: The judgment does not record any specific arguments made by the revenue on this issue.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

$~23 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 14735/2024 & CM APPL. 61879/2024

SHIVPRIYA TRADING AND FINANCE CO. PVT. LTD

.....Petitioner Through: Mr. Gautam Jain, Mr. Deepanshu Jain, Mr. Shaantanu Jain, Mr. Manish Yadav and Mr. Prateek Kumar, Advocates.

versus

INCOME TAX OFFICER, WARD 23(1), DELHI .....Respondent Through: Mr. Sunil Agarwal, Senior Advocate with Mr. Shivansh B. Pandya, Mr. Viplav Acharya, Ms. Priya Sarkar and Mr. Utkarsh Tiwari, Advocates.

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) allow the present Writ Petition;

b) issue a writ of certiorari or writ of mandamus or appropriate writ, direction or order for quashing and setting aside the impugned notice dated 28.08.2024 u/s 148 of the Act issued by respondent in the petitioner’s case for A.Y. 2023-24; and

c) issue a writ of certiorari or writ of mandamus or appropriate writ, direction, or order for quashing the proceedings initiated 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 11:57:32

vide the impugned notice dated 28.08.2024 u/s 148 of the Act; and

d) grant an ad-interim ex-parte relief in terms of above prayers, inter alia, staying all proceedings/actions subsequent/ consequent to the impugned notice dated 28.08.2024 issued under section 148 of the Act for A.Y. 2023-24, during the pendency of the present petition;”

2.

The present petition was moved on 22.10.2024 when this Court had passed the following order:- “3. At the outset, learned counsel for the petitioner has confined the present petition to challenging the jurisdiction of the Jurisdiction Assessing Officer (hereafter the JAO) to issue the notice dated 28.08.2024 under Section 148 of the Income Tax Act, 1962 (hereafter the Act) which is impugned in the present petition.

4.

He submits that after issuance of a notification dated 29.03.2022 by the Central Board of Direct Taxes (hereafter the CBDT), the JAO has no jurisdiction to initiate any re- assessment proceedings.

5.

A batch of matters involving similar issue is now listed before this Court on 16.12.2024. Accordingly, list the present matter on the said date.

6.

In the meantime, the respondent is at liberty to file a counter affidavit, if necessary, within a period of four weeks from today. Rejoinder thereto, if any, be filed before the next date of hearing.

7.

The re-assessment proceedings will continue, however, if any adverse order is passed, the same would not be given effect to, till the next date of hearing.

8.

List on 16.12.2024.” 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 11:57:32

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

VIBHU BAKHRU, ACJ

TUSHAR RAO GEDELA, J DECEMBER 16, 2024 yrj

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 24/12/2024 at 11:57:32

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