AKI ORGANICS PVT LTD (MERGED WITH SONY FINANCIAL SERVICES PVT LTD) vs. ACIT CENTRAL CIRCLE 27 & ORS.

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W.P.(C)/16371/2025HC DelhiDLHC01082881202524 November 2025Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the notice under Section 148 dated 31.03.2024 and the order under Section 144/147 dated 05.03.2025 were unsustainable. The Court accepted the submission that the proceedings were initiated against the wrong entity due to the merger. Consequently, the Court set aside the impugned notice and order. The respondents were granted liberty to initiate fresh proceedings against the correct entity, M/s Sony Financial Services Pvt. Ltd., within 90 days from the date of the order and to proceed in accordance with law. The writ petition was disposed of in terms of this direction.

What were the facts?

The petitioner, AKI Organics Pvt Ltd (merged with Sony Financial Services Pvt Ltd), filed a writ petition challenging a notice under Section 148 of the Income Tax Act, 1961, dated 31.03.2024, and an order under Section 144/147 dated 05.03.2025, which raised a demand of Rs. 1,77,54,780/- for Assessment Year 2017-18. The petitioner argued that the proceedings were initiated against the wrong entity due to a merger. The respondents, represented by the ACIT Central Circle 27 & Ors., acknowledged that proceedings should have been initiated against M/s Sony Financial Services Pvt. Ltd.

What were the issues?

1. Whether the notice under Section 148 of the Income Tax Act, 1961, dated 31.03.2024, is sustainable when issued against the petitioner company, M/s AKI Organics Pvt Ltd, which had undergone mergers. 2. Whether the order passed under Section 144/147 of the Income Tax Act, 1961, dated 05.03.2025, raising a demand of Rs. 1,77,54,780/- for AY 2017-18, is valid when issued against the incorrect entity. Assessee's contention: The proceedings were initiated against the wrong entity due to the merger of M/s AKI Organics Pvt. Ltd. with M/s Greenbox Organics Pvt. Ltd. and subsequently with M/s Sony Financial Services Pvt. Ltd., rendering the notice and order unsustainable. Revenue's contention: The revenue, through its counsel, acknowledged that the proceedings should have been initiated against M/s Sony Financial Services Pvt. Ltd.

Which sections of the Income-tax Act were involved?

Section 148,Section 144,Section 147

AI-generated summary — verify with the full judgment below

$~75 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 16371/2025 CM APPL. 67008/2025 AKI ORGANICS PVT LTD (MERGED WITH SONY FINANCIAL SERVICES PVT LTD) .....Petitioner Through: Ms Surbhi Chandra, Advocate. versus ACIT CENTRAL CIRCLE 27 & ORS. .....Respondent Through: Mr. Shlok Chandra, Sr. Std. Counsel with Ms. Naincy Jain, Advocate. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR O R D E R %

24.11.2025 1. This petition has been filed with the following prayers : 1. Issue a writ of certiorari or any other appropriate writ, order, or direction quashing the notice under Section 148 of the Income Tax Act, 1961, dated 31.03.2024 (DIN: ITBA.AST/S/148.1/2023- 24/1063769934(1) issued by Respondent No.1 (Annexure P-3). 2. Issue a writ of certiorari or any other appropriate writ, order, or direction quashing the order under Section 144/147 dated 05.03.2025, raising a demand of Rs.1,77,54,780/- for A.Y. 2017 -18 (Annexure P- 6). 3. Issue a writ of mandamus or any other appropriate writ, order, or direction restraining the Respondents from initiating any further proceedings against the Petitioner under the surrendered PAN AAACA2265N for A.Y. 2017- I 8 or any other assessment year. 4. Grant interim relief by staying the operation of the impugned noticed dated 31.03.2024 and order dated 05.03.2025, including any coercive recovery actions, pending the disposal of this Writ Petition. 5. Pass any other order(s) as this Hon'ble Court may 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 01/12/2025 at 13:18:13

deem fit and proper in the facts and circumstances of the case.” 2. The challenge is primarily to the notice issued under Section 148 of the Income Tax Act, 1961 (the Act) dated 31.03.2025 and also an order passed under Section 144/147 of the Act dated 05.03.2025. The submission of learned counsel for the petitioner is primarily that these proceedings were initiated against the M/s AKI Organics Pvt. Ltd., which was initially merged with M/s Greenbox Organics Pvt. Ltd., but later with M/s Sony Financial Services Pvt. Ltd. and hence in that sense, the proceedings initiated, passing of the order and further action taken by the respondents are totally unsustainable. 3. Mr. Shlok Chandra, SSC, who appears for the respondents, has taken instructions. As per his instructions, the proceedings should have been initiated against the entity called M/s Sony Financial Services Pvt. Ltd. 4. If that be so, appropriate shall be that the notice dated 31.03.2025 and the order passed under Section 144/147 of the Act dated 05.03.2025 are set aside granting liberty to the respondents to initiate fresh proceedings against the entity called M/s Sony Financial Services Pvt. Ltd. within 90 days from today and proceed in accordance with law. 5. Petition is disposed of. V. KAMESWAR RAO, J VINOD KUMAR, J NOVEMBER 24, 2025 dd 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 01/12/2025 at 13:18:13

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