SAIJA FINANCE PRIVATE LIMITED vs. ASSESSMENT UNIT INCOME TAX DEPARTMENT DELHI & ANR.

PDF · subscribers
W.P.(C)/6473/2025HC DelhiDLHC01030106202519 May 2025Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court set aside the assessment order dated 22.03.2025 for AY 2017-18 and remanded the matter to the Assessing Officer (AO). The AO is directed to pass a fresh order after considering the petitioner's response to the show cause notice (SCN). The court clarified that the AO is not precluded from issuing a fresh SCN concerning any addition, issue, or matter where an adverse order is proposed. The court explicitly stated that it had not examined other issues raised by the petitioner and reserved all rights and contentions regarding those issues. However, the petitioner cannot raise these reserved issues in a separate writ petition but can avail statutory appellate remedies. The pending application was disposed of.

What were the facts?

The petitioner, Saija Finance Private Limited, filed a writ petition before the Delhi High Court challenging various notices and orders issued by the Income Tax Department for Assessment Year 2017-18. These included a notice under Section 148A(b), an order under Section 148A(d), a notice under Section 148, an assessment order under Section 147, a demand notice under Section 156, and a penalty notice under Section 274 read with Section 271AAC(1). The High Court had previously issued limited notice to consider if the assessment order travelled beyond the scope of the show cause notice (SCN). The Revenue, through its counsel, agreed to remand the matter to the Assessing Officer (AO) for fresh consideration.

What were the issues?

1. Whether the assessment order travelled beyond the scope of the show cause notice (SCN) issued to the petitioner for AY 2017-18, specifically concerning the amount of addition, reliance on un-notified CBDT instructions, and the section under which the addition was made (Section 68 vs. Section 69A)? Assessee's Contentions: - The SCN was confined to ₹50 crores, but a larger addition was made in the assessment order. - The AO relied on CBDT instructions that were not provided to the petitioner, denying them an opportunity to respond. - The addition was initially proposed under Section 69A of the Income Tax Act, 1961, but the final assessment order made the addition under Section 68. Revenue's Contentions: - The Revenue, through its counsel, agreed to remand the matter to the Assessing Officer for fresh consideration.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148A(b),Section 148A(d),Section 148,Section 147,Section 156,Section 274,Section 271AAC(1),Section 69A,Section 68

AI-generated summary — verify with the full judgment below

W.P.(C) 6473/2025 Page 1 of 4 $~110 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6473/2025 & CM APPL. 29501/2025 SAIJA FINANCE PRIVATE LIMITED .....Petitioner Through: Ms Ananya Kapoor, Advocate. versus ASSESSMENT UNIT INCOME TAX DEPARTMENT DELHI & ANR. .....Respondent Through: Mr Puneet Rai, SSC, Mr Ashvini Kumar Mr Rishabh Nangia, and Mr Gibran JSCs and Mr Nikhil Jain, Advocate. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 19.05.2025 1. The petitioner has filed the present petition, inter alia, praying as under:- “A. Issue a writ of and/or order and or directions in the nature of certiorari or any other appropriate writ, order or direction quashing notice dated 07.02.2024 issued under Section 148A(b) of the Act; order dated 21.03.2024 passed under Section 148A(d) of the Act; notice dated 21.03.2024 issued under Section 148 of the Act; impugned assessment order dated 22.03.2025 passed under Section 147 of the Act; impugned demand notice dated 22.03.2025 issued under Section 156 of the Act and the penalty notice dated 22.03.2025 issued under Section 274 read with Section 271AAC(1) of the Act by the Respondent in the case of Petitioner for AY 2017-18. B. Issue a writ of and/or order and/or direction in the nature of Prohibition commanding Respondents to 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 22:39:59

W.P.(C) 6473/2025 Page 2 of 4 forebear from giving effect to and/or taking any step whatsoever pursuant to and/or in furtherance to the impugned assessment order dated 22.03.2025 passed under Section 147 of the Act; impugned demand notice dated 22.03.2025 issued under Section 156 of the Act and the penalty notice dated 22.03.2025 issued under Section 274 read with Section 271AAC(1) of the Act and/or in any proceedings initiated thereunder for the AY 2017-18;” 2. By an order dated 15.05.2005, this court had issued a limited notice confined to the question of whether the assessment order travelled beyond the scope of the show cause notice [SCN]. We consider it apposite to reproduce the order dated 15.05.2025 passed by this Court, which records the issues raised by the petitioner. The same is set out below:- “W.P.(C) 6473/2025 and CM APPL. 29501/2025 3. The petitioner has filed the preset petition, inter alia, praying as under: “A. Issue a writ of and/or order and or directions in the nature of certiorari or any other appropriate writ, order or direction quashing notice dated 07.02.2024 issued under Section 148A(b) of the Act; order dated 21.03.2024 passed under Section 148A(d) of the Act; notice dated 21.03.2024 issued under Section 148 of the Act; impugned assessment order dated 22.03.2025 passed under Section 147 of the Act; impugned demand notice dated 22.03.2025 issued under Section 156 of the Act and the penalty notice dated 22.03.2025 issued under Section 274 read with Section 271AAC(1) of the Act by the Respondent in the case of Petitioner for AY 2017-18. B. Issue a writ of and/or order and/or direction in the nature of Prohibition commanding Respondents to forebear from giving effect to and/or taking any step whatsoever pursuant to 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 22:39:59

W.P.(C) 6473/2025 Page 3 of 4 and/or in furtherance to the impugned assessment order dated 22.03.2025 passed under Section 147 of the Act; impugned demand notice dated 22.03.2025 issued under Section 156 of the Act and the penalty notice dated 22.03.2025 issued under Section 274 read with Section 271AAC(1) of the Act and/or in any proceedings initiated thereunder for the AY 2017-18.” 4. The learned counsel for the petitioner submits that the addition made in the assessment order is beyond the scope of the show-cause notice [SCN] on several grounds. First, that the SCN was confined to ₹50 crores but a larger addition that has been made. Second, that the AO has relied on a CBDT instructions, which were not put to the petitioner, therefore, the petitioner had no opportunity to respond the same. And third, that the addition was proposed to be made under Section 69A of the Income Tax Act, 1961 [the Act], however, the addition now made in the assessment order is under Section 68 of the Act. 5. We are not inclined to entertain the present petition on merits as the petitioner has an equally efficacious remedy of an appeal. Thus, the notice is confined to the issue of the AO travelling beyond the show-cause notice. 6. Mr Rai accepts notice and seeks time to take instructions. 7. List on 19.05.2025.” 3. Mr Rai, the learned counsel appearing for the Revenue fairly states on instructions that the matter be remanded to the Assessing Officer [AO] for consideration afresh. 4. In view of the above, the assessment order dated 22.03.2025 in 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 22:39:59

W.P.(C) 6473/2025 Page 4 of 4 respect of the Assessment Year 2017-18 is set aside and the matter is remanded to the AO to pass the fresh order after considering the response of the petitioner to the SCN. The AO is also not precluded from issuing a fresh show cause notice in respect of any addition/issues or any other matter in respect of which the AO proposes to pass an adverse order. We clarify that we have not examined other issues as raised by the petitioner, and all rights and contentions in respect of those issues are reserved. However, it would not be open for the petitioner to raise such issues by way of filing a separate writ petition. But would not preclude the petitioner from availing statutory appellate remedies in accordance with law. The pending application is disposed of. VIBHU BAKHRU, J TEJAS KARIA, J MAY 19, 2025 M 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 01/07/2025 at 22:39:59

More judgments on Section 148A

All 3,543 judgments and leading authorities on Section 148A →

Recent GST High Court judgments

Search GST case law →