IBIBO GROUP PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 10(1), DELHI & ANR.

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W.P.(C)/15051/2022HC DelhiDLHC01040408202211 February 2025Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR4 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petition by directing the Assessing Officer (AO) to evaluate the reassessment proceedings, specifically addressing the issue of limitation. The Court referred to its previous judgments in Kanwaljeet Kaur v. Assistant Commissioner of Income Tax Circle, which in turn relied on decisions in T.K.S. Builders, Abhinav Jindal, Naveen Kumar Gupta, Rajeev Bansal, and Ram Balram. The AO is mandated to pass a reasoned and speaking order that considers the impact of these judgments on the impugned reassessment notices. This order must determine whether the notices survive or are liable to be recalled, particularly concerning the 'surviving period' and the applicability of the Fourth Proviso to Section 149. The petitioner retains the liberty to challenge any adverse order passed by the AO. No specific finding on the limitation period was made by the High Court itself; instead, it remanded the issue for detailed adjudication by the AO.

What were the facts?

The petitioner, Ibibo Group Private Limited, filed a writ petition challenging the reassessment action initiated by the Deputy Commissioner of Income Tax, Circle 10(1), Delhi, for Assessment Year 2014-15. The core dispute revolves around the 'surviving period' for issuing a notice under Section 148 of the Income Tax Act, 1961, considering the limitation period. The petitioner contends that the notice issued on 30.06.2021, after the expiry of the limitation period on 30.06.2021, with zero surviving days, is barred by time. The revenue argues for a seven-day extension based on the Fourth Proviso to Section 149. The subsequent notice under Section 148A(b) was issued on 15.05.2022, with the order under Section 148A(d) and the notice under Section 148 both dated 29.06.2022.

What were the issues?

1. Whether the notice under Section 148 of the Income Tax Act, 1961, issued for Assessment Year 2014-15, is barred by limitation, considering the 'surviving period' and the applicability of the Fourth Proviso to Section 149 of the Act. Assessee's contentions: The assessee argues that the initial notice under Section 148 was issued on 30.06.2021, which was the last day of the limitation period, resulting in zero surviving days. They rely on the judgment in Rajeev Bansal to compute the surviving period. The notice under Section 148A(b) was issued on 15.05.2022, and the final notice under Section 148 was issued on 29.06.2022, which they contend is beyond the permissible period even with the seven-day extension claimed by the revenue. Revenue's contentions: The revenue contends that there are seven days of 'surviving period' applicable, potentially due to the Fourth Proviso to Section 149. They argue that the notice under Section 148, issued on 29.06.2022, falls within the extended limitation period.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149,Section 151,Section 153C

AI-generated summary — verify with the full judgment below

$~36 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P.(C) 15051/2022

IBIBO GROUP PRIVATE LIMITED

.....Petitioner Through: Mr. Salil Kapoor, Mr. Sumit Lalchandani, Ms. Ananya Kapoor and Mr. Tarun Chanana, Advs.

versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 10(1), DELHI & ANR.

.....Respondents

Through: Mr. Sanjay Kumar, SSC with Ms. Monica Benjamin and Ms. Easha Kadian, JSCs. CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

O R D E R %

11.02.2025

1.

The writ petitioner had instituted these proceedings assailing the reassessment action commenced by the respondents pertaining to Assessment Year 2014-15. 2. The solitary issue which is pressed before us today is with respect to surviving period with Mr. Lalchandani, learned counsel placing reliance on the following chart:- “IN THE MATTER OF: IBIBO GROUP PRIVATE LIMITED

A Item Number 36 B Writ Petition Number 15051/2022 C Assessment Year 2014-15

Petitioner’s Stand Revenue’s Stand D Notice under Section 148 of the Act issued during 30.06.2021 (Annexure P - 30.06.2021 (Annexure 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 22:26:13

01.04.2021 to 30.06.2021 with annexure number 4)

P - 4)

E Surviving period days before the expiry of limitation on 30.06.2021 [In terms of Paragraph paragraphs 108- 112 and 114 of judgment rendered in Rajeev Bansal

[Number of days computed by the following formula: 30.06.2021 less the date on which initial notice under section 148 was issued]

[E=30.06.2021 - D] „Zero days‟

„Zero days‟

Applicability of Fourth Proviso to Section 149 of the Act Extension of surviving period/days Yes „Seven days‟

Yes „Seven days‟

F Notice under Section 148A(b) of the Act 15.05.2022 (Annexure P - 9) 15.05.2022 (Annexure P - 9) G Date on which reply was required to be filed as per the notice issued under Section 148A(b) 29.05.2022

29.05.2022

G1 Date on which reply was submitted by the assessee under Section 148A(c) 22.06.2022 (Annexure - P10)

22.06.2022 (Annexure - P10)

G2 Date on which 148A(d) order could have been passed by AO 30.05.2022

29.06.2022

H Last date to issue the notice under section 148 after considering the surviving period 30.05.2022 29.06.2022

I Last date to issue a notice under Section 148 after considering the fourth proviso to Section 149 where applicable |Cases wherein notice is issued on/after 23.06.2021] 05.06.2022 29.06.2022

J Order under Section 148A(d) of the Act 29.06.2022 (Annexure P - 11) 29.06.2022 (Annexure P - 11) 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 22:26:13

K Notice under Section 148 of the Act 29.06.2022 (Annexure P - 11)

29.06.2022 (Annexure P - 11)

L Applicability of Union of India vs. Rajeev 247-252 Bansal (Civil Appeal No. 8629 of 2024) (Yes/No) The impugned notice is barred by time limitation

Yes (the impugned notice under Section 148 is issued within limitation

3.

We, however, note that the aspect of whether the proceedings would be barred by limitation is one which is disputed. We bear in consideration the following operative directions that we had ultimately framed while disposing of a batch of writ petitions in Kanwaljeet Kaur v Assistant Commissioner of Income Tax Circle (34) 1 Delhi and Others [2025 SCC OnLine Del 605] and where we had observed as follows:- “27. We accordingly dispose of this batch of writ petitions by directing the concerned AOs to evaluate the individual SCNs' under Section 148 of the Act bearing in mind our judgments in T.K.S. Builders, Abhinav Jindal and Naveen Kumar Gupta. These decisions have conclusively settled issues pertaining to the accordal of sanction under Section 151 as well as the authority of the jurisdictional AO to commence and undertake reassessment. Those decisions also lay at rest the challenge which the writ petitioners had raised that an AO is bound to adhere to the procedure prescribed by Section 153C in cases emanating from a search. 28. A similar exercise would have to be undertaken to examine the issue of surviving period in respect of each individual noticee under Section 148 and which would necessarily be guided by the judgments of Rajeev Bansal and Ram Balram. 29. The concerned AOs shall consequently pass a reasoned and speaking order dealing with the impact of the judgments referred to above upon the impugned reassessment notices and in the manner indicated in paras 27 and 28 of this order. That decision shall thus render a finding on whether the impugned reassessment notices 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 22:26:13

would survive or be liable to be recalled. It shall be open to the writ petitioners to assail any adverse orders that may come to be passed pursuant to the above in accordance with law.”

4.

The writ petition shall consequently stand disposed of on terms identical to those provided in Kanwaljeet Kaur.

YASHWANT VARMA, J.

HARISH VAIDYANATHAN SHANKAR, J. FEBRUARY 11, 2025/nd 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 22:26:13

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