NKC PROJECTS PRIVATE LIMITED vs. DCIT CIRCLE -16(1) NEW DELHI

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W.P.(C)/6498/2025HC DelhiDLHC01030114202515 May 2025Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA2 pages
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What did the High Court hold?

The Delhi High Court set aside the impugned notice dated 29.03.2025 issued under Section 148 of the Income Tax Act, 1961. The Court accepted the Revenue's submission that the notice was issued without following the prescribed procedure under Section 148A of the Act. The High Court clarified that the Revenue is not precluded from initiating proceedings under Section 148A of the Act and, if deemed fit, issuing a fresh notice under Section 148, provided it is in accordance with law and within the prescribed time limits. The petition was allowed in terms of these observations.

What were the facts?

The petitioner, NKC Projects Private Limited, filed a writ petition before the Delhi High Court challenging a notice dated March 29, 2025, issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2018-19. The petitioner contended that the notice was issued without adhering to the mandatory procedure prescribed under Section 148A of the Act. The Revenue, represented by its counsel, acknowledged the procedural lapse and agreed to set aside the impugned notice.

What were the issues?

1. Whether the notice dated 29.03.2025, issued under Section 148 of the Income Tax Act, 1961, for AY 2018-19, is invalid for non-compliance with the procedure prescribed under Section 148A of the Act? Assessee's Contention: The petitioner argued that the impugned notice was issued without following the mandatory procedure laid down in Section 148A of the Act. Revenue's Contention: The Revenue, through its counsel, fairly conceded that the impugned notice may be set aside and agreed to issue a fresh notice after complying with the due procedure under Section 148A of the Act.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A

AI-generated summary — verify with the full judgment below

$~95 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6498/2025 & CM APPL. 29599-600/2025 NKC PROJECTS PRIVATE LIMITED .....Petitioner Through: Mr Prakash Sinha, Advocate. versus DCIT CIRCLE -16(1) NEW DELHI .....Respondent Through: Mr Gaurav Gupta, SSC, Mr Shivendra Singh, Mr Yojit Pareek, JSCs and Ms Prakriti Rastogi, Advocate. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 15.05.2025 1. Issue notice. Mr Gupta, the learned counsel appearing for the Revenue accepts notice. 2. The petitioner has filed the present petition, inter alia, impugning the notice dated 29.03.2025 [impugned notice] issued under Section 148 of the Income Tax Act, 1961 [the Act] in respect of the Assessment Year [AY] 2018-19. 3. It is the petitioner’s case that the impugned notice has been issued without following the procedure as prescribed under Section 148A of the Act. 4. Mr Gupta, the learned counsel for the Revenue, fairly states that the impugned notice may be set aside with liberty to the Revenue to issue fresh notice after following the due procedure under Section 148A of the Act. 5. In view of the above, the impugned notice is set aside. We, however, 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 20:00:28

clarify that the Revenue would not be precluded from initiating the proceedings under Section 148A of the Act and if the Assessing Officer finds it a fit case for issuance of notice under Section 148 of the Act, to issue the same, subject to the same being in accordance with law and within the time as otherwise prescribed under the law. 6. The petition is allowed in the aforesaid observation. The pending applications are also disposed of. VIBHU BAKHRU, J TEJAS KARIA, J MAY 15, 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 20:00:28

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