TECHNOCRATS ADVISORY SERVICES PVT. LTD. vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 76(1) & ORS.

PDF · subscribers
W.P.(C)/15036/2025HC DelhiDLHC01074539202526 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 and pending application. The Court directed Respondent No. 1 (Assistant Commissioner of Income Tax) to decide the notice dated August 5, 2025, after considering the replies filed by the petitioner. This decision was to be made within three weeks from the date of the order. The Court did not explicitly rule on the validity of the notice or the need for comprehensive guidelines, as the matter was resolved by directing the respondent to adjudicate the issue. The operative direction was to decide the pending notice, implying a procedural resolution rather than a final determination on the merits of the demand at this stage. The issue of Respondent No. 3 issuing a circular was not addressed in the final order.

What were the facts?

The petitioner, Technocrats Advisory Services Pvt. Ltd., filed a writ petition challenging a notice dated August 5, 2025, issued by the Assistant Commissioner of Income Tax (Respondent No. 1) under Section 226(3) of the Income Tax Act, 1961. This notice demanded recovery of Rs. 12,17,900/- for an alleged shortfall in Tax Deducted at Source (TDS) deposits for the Financial Years 2016-17 to 2024-25. The petitioner submitted replies to this notice on August 8, 2025, and August 27, 2025. However, no order had been passed by the respondents, and the petitioner had not received any further communication pursuant to their replies.

What were the issues?

1. Whether the notice dated August 5, 2025, issued by Respondent No. 1 under Section 226(3) of the Income Tax Act, 1961, for the recovery of Rs. 12,17,900/- is valid and appropriate, considering the alleged shortfall in TDS deposits for FY 2016-17 to FY 2024-25. 2. Whether Respondent No. 3 should issue a circular containing comprehensive guidelines for Assessing Officers when invoking powers under Section 226(3) for TDS recovery. Assessee's Contention: The petitioner's primary grievance is the demand of Rs. 12,17,900/- via the Section 226(3) notice. They have filed replies to this notice and are awaiting a decision. They also seek directions for comprehensive guidelines on invoking Section 226(3). Revenue's Contention: The judgment does not record any specific arguments from the revenue regarding the validity of the notice or the need for guidelines. The appearance of the counsel for the respondents suggests they were present to respond.

Which sections of the Income-tax Act were involved?

Section 226(3)

AI-generated summary — verify with the full judgment below

$~19 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 15036/2025, CM APPL. 61933/2025 TECHNOCRATS ADVISORY SERVICES PVT. LTD. .....Petitioner Through: Mr. Abhishek Shivpuri, Adv. versus ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 76(1) & ORS. .....Respondents Through: Mr. Puneet Rai, SSC with Mr. Mr. Gibran, JSC, Mr. Ashvini Kumar and Mr. Rishabh Nangia, Advs. Mr. Avdesh Kumar, Adv. for R-3. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR O R D E R %

26.09.2025 1. This petition has been filed with the following prayers:- “a) Issue a writ of certiorari or any other appropriate writ quashing the notice dated 5 August 2025 issued by Respondent No. 1 under section 226(3) of the Income Tax Act, 1961, to Respondent No. 2 for recovery of Rs. 12,17,900/- for the alleged shortfall in the deposit of TDS for F.Y. 2016-17 to F.Y. 2024-25. b) Issue a writ of mandamus directing Respondent No. 3 to issue a circular containing comprehensive guidelines for the Assessing Officers while invoking powers under section 226(3) for recovery of TDS.” 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 06/10/2025 at 13:01:27

2.

The grievance of the petitioner is primarily in respect of notice issued on 05.08.2025 making a demand for Rs. 12,17,900/-. The learned counsel for the petitioner submits that pursuant to the receipt of aforesaid notice under Section 226(3) of the Income Tax Act, 1961, replies have been filed by the petitioner on 08.08.2025 and on 27.08.2025, respectively. 3. He states no order has been passed by the respondents on the same as nothing has been received by the petitioner pursuant thereto. 4. If that be so, we dispose of the writ petition along with pending application, directing the respondent no. 1 to decide the notice dated 05.08.2025 after considering the above replies filed by the petitioner within three weeks from today. V. KAMESWAR RAO, J VINOD KUMAR, J SEPTEMBER 26, 2025/sr 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 06/10/2025 at 13:01:27

More judgments on Section 226(3)

All 95 judgments and leading authorities on Section 226(3) →

Recent GST High Court judgments

Search GST case law →