GAURAV SOMANI vs. PRINCIPAL COMMISSIONER OF INCOME TAX -24 & ORS.

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W.P.(C)/7420/2024HC DelhiDLHC01031044202403 July 2025Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA3 pages
AI SummaryPartly Allowed

What did the High Court hold?

The Court noted that the issues had been resolved, and the petitioner's PAN had been removed from the suspected fraudulent list. The Revenue stated that the process to pass rectification orders for all assessment years from 2014-15 was underway. Consequently, the Court found no further orders were required, other than directing the respondents to pass the necessary rectification orders and process refunds with applicable interest within eight weeks. The petition was disposed of on these terms. The Court did not explicitly decide on the validity of the initial blacklisting, as the matter was resolved procedurally.

What were the facts?

The petitioner, Gaurav Somani, filed a writ petition before the Delhi High Court seeking directions to process his income tax returns from FY 2014-15 onwards, allow credit for taxes paid, de-blacklist his PAN, and refund excess taxes paid. The respondents, Principal Commissioner of Income Tax -24 & Ors., were directed to file a counter affidavit. Despite several opportunities, the counter affidavit did not explain why the petitioner's PAN was blacklisted. The Court noted that the petition had been pending for almost a year without clarity on the PAN blacklisting. The Revenue stated that instructions from the Central Processing Centre (CPC) were awaited. The Court warned that if no reasons were provided by the next hearing, it would proceed on the basis that there were no valid reasons for blacklisting.

What were the issues?

1. Whether the Respondents have provided valid reasons for blacklisting the Petitioner's PAN, and if not, whether the Petitioner is entitled to relief. (Question of law and fact, turning on principles of natural justice and administrative law). Assessee's Contention: The petitioner sought directions to process returns, allow tax credit, de-blacklist PAN, and refund excess taxes, implying the blacklisting was unjustified and causing prejudice. Revenue's Contention: The Revenue initially stated that instructions from the CPC were awaited and that the concerned authority was trying to ascertain the reasons for blacklisting. They did not present any specific justification for the blacklisting during the initial hearings.

AI-generated summary — verify with the full judgment below

$~17 * IN THEHIGH COURTOF DELHIAT NEW DELHI + W.P.(C) 7420/2024 CM APPL. 30947/2024 GAURAV SOMANI .....Petitioner Through: Mr Vaibhav Gupta, Advocate. versus PRINCIPAL COMMISSIONER OF INCOME TAX -24 & ORS. .....Respondents Through: Mr Ruchir Bhatia, SSC, Mr Anant Mann, JSC Ms Aditi Sabharwal and Mr Abhishek Anand, Advocates. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 03.07.2025 1. The petitioner has filed the present petition, inter alia, praying as under:- “A. Issue an appropriate writ in the nature of mandamus or any other directing the Respondents to process the Income tax return of the petitioner for the F.Y. 2014-15 (A.Y. 2015-16) onwards and allow the credit of the taxes paid by the petitioner; B. Issue an appropriate writ directing the Respondents to ‘regularise/de-blacklist’ the PAN number of the petitioner with the Income Tax Department; C. Issue an appropriate writ directing the respondent to refund the excess of Income tax paid by the petitioner during the course of the filing of income tax returns and payment of self-assessment taxes;” 2. The present petition was listed on 22.05.2024 and the respondents 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 07/07/2025 at 12:13:11

were directed to file the counter affidavit. Although the counter affidavit was filed after several opportunities, it did not shed any light as to why the petitioner’s PAN was black-listed. 3. After several hearings, on 16.05.2025, this Court passed, inter alia, the following order:- “3. The learned counsel appearing for the Revenue submits that the instructions from Central Processing Centre [CPC] are still awaited. We note that the present petition has been pending before this Court for almost one year and, as on date, we have no clue as to why the petitioner’s Permanent Account Number [PAN] has been blacklisted. 4. The counter affidavit filed also does not shed any light on the matter, except for stating that the concerned authority is trying to ascertain the reasons from the CPC. We clarify that if no reasons are forthcoming till the next date of hearing, this court would be constrained to proceed on the basis that there are no valid reasons for blacklisting the petitioner’s PAN and consequential orders shall follow. 5. List on 29.05.2025. 6. The hearing scheduled on 05.08.2025 is cancelled.” 4. The learned counsel appearing for the Revenue states that the issues have now been resolved and the PAN of the petitioner has been removed from the suspected fraudulent list. He states that the process to pass the rectification orders for all the assessment years from 2014-15 are under process. 5. In view of the above, no further orders are required to be passed in the present case, except to direct the respondents to pass the necessary rectification orders and process the refunds along with applicable interest, in accordance with law, in a time bound manner – within a period of eight 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 07/07/2025 at 12:13:11

weeks from date. 6. The petition is disposed of in the above terms. The pending application is also disposed of. VIBHU BAKHRU, J TEJAS KARIA, J JULY 03, 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 07/07/2025 at 12:13:11

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