SHAKUNTALAM SECURITIES PVT. LTD. vs. INCOME TAX OFFICER WARD 23(1) & ORS.

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W.P.(C)/12171/2024HC DelhiDLHC01056595202402 September 2024Bench: HON'BLE MR. JUSTICE RAVINDER DUDEJA,HON'BLE MR. JUSTICE YASHWANT VARMA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that it found no justification to entertain the challenge to the impugned orders and notices, considering the issues of fact sought to be canvassed. The court noted that the petitioner had not alleged that the original notice under Section 148A(b) was not duly served via post. Therefore, the writ petition was disposed of with liberty reserved to the writ petitioner to raise all contentions and objections before the Assessing Officer. The Assessing Officer was directed to duly examine these contentions and pass further orders as warranted. The court kept all rights and contentions of respective parties open. No specific issue was left undecided; rather, the court declined to decide the merits of the case at the writ stage.

What were the facts?

The petitioner, Shakuntalam Securities Pvt. Ltd., filed a writ petition before the Delhi High Court challenging an order passed under Section 148A(d) of the Income Tax Act, 1961, dated March 5, 2024, for Assessment Year 2017-18. The petitioner also challenged the notice issued under Section 148A(b) dated February 12, 2024, and a subsequent notice dated July 15, 2024, under Section 142(1). The petitioner contended that due to inadvertence, the e-mail communication regarding the Section 148A(b) notice was not attended to, leading to a failure to file a response. The Assessing Officer proceeded to pass the order under Section 148A(d) and issued a notice under Section 148 on March 5, 2024. The High Court noted that there was no allegation that the original notice under Section 148A(b) was not duly served via post.

What were the issues?

1. Whether the High Court should entertain a challenge to orders passed under Section 148A(d) and notices issued under Section 148A(b) and Section 148 of the Income Tax Act, 1961, when the assessee failed to respond to the show-cause notice due to inadvertence, and the original notice was duly served by post, turning on Section 148A and Section 148 of the Act. Assessee's contentions: The petitioner argued that due to inadvertence, the e-mail communication was not attended to, resulting in a failure to file a response to the notice under Section 148A(b). The petitioner sought to set aside the impugned orders and notices and prohibit the respondents from taking further steps. Revenue's contentions: The judgment does not explicitly record the revenue's contentions. However, the court noted that there was no allegation that the original notice under Section 148A(b) did not stand duly served via post.

Which sections of the Income-tax Act were involved?

Section 148A(d),Section 148A(b),Section 142(1),Section 148

AI-generated summary — verify with the full judgment below

$~63 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 12171/2024

SHAKUNTALAM SECURITIES PVT. LTD. .....Petitioner

Through: Ms. Surbhi Chandra, Adv.

versus

INCOME TAX OFFICER WARD 23(1) & ORS. .....Respondents Through: Mr. Sunil Agarwal, SSC with Mr. Shivansh Pandya, Mr. Viplav Acharya, Mr. Utkarsh Tiwari, Advs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE RAVINDER DUDEJA

02.09.2024 O R D E R Allowed, subject to all just exceptions. CM APPL. 50645/2024 Application shall stand disposed of.

1.

This writ petition has been preferred seeking the following reliefs:- W.P.(C) 12171/2024 & CM APPL. 50644/2024 (Stay) “A. That this Hon'ble Court may be pleased to issue a writ of CERTIRARI or a writ in the nature of CERTIORARI or any other appropriate WRIT, order or direction or order setting aside the impugned order passed under section 148A(d) of the act dated 05/03/2024 for A.Y. 2017-18 and the impugned notice issued under section 148A(b) dated 12.02.2024 and the of it act and notice dated 15/07/2024 under section 142(1) of the income tax Act, B. That this Hon'ble court be pleased to issue a writ of prohibition or a writ in the nature of prohibition or any other appropriate writ, order or direction under Article 226 of the Constitution of India prohibiting Respondents from taking any steps in furtherance of the said notice under section 148A(B) of the Act, dated 12/02/2024 order under section 148A(d) of the Act, dated 05/03/2024 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 06/09/2024 at 15:35:56

C. That pending the hearing and final disposal of the present petition, this honorable court may be pleased to stay the operation of the said notice under section 148 of the Act dated 05/03/2024 annexed as ANNEXURE-C and show cause notice under section 148A(b) of the Act dated 12/02/2024 annexed as ANNEXURE-B D. For add interim reliefs in terms of prayers above E. For costs of the petition and F. For such further and other reliefs as the nature and circumstances of the case may require.” 2. As is manifest from the record, the notice under Section 148A(b) of the Income Tax Act, 19611 was issued on 12 February 2024. Since the petitioner had neither filed a response to the same nor sought any adjournment, the Assessing Officer2 3. Before us, it is contended by learned counsel for the writ petitioner, that due to inadvertence the e-mail communication could not be attended to and thus there was a failure on the part of the assessee to file a response. proceeded to frame a final order of assessment under Section 148A(d) on 05 March 2024 and which consequently saw the issuance of a notice under Section 148 of the same date. 4. We however note that there is no allegation in the writ petition that the original notice under Section 148A(b) did not stand duly served via post. 5. In that view of the matter, and bearing in mind the issues of fact which are sought to be canvassed before us, we find no justification to entertain the challenge. 6. Accordingly, we dispose of the writ petition with liberty reserved to the writ petitioner to raise all contentions and objections

1 Act 2 AO 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 06/09/2024 at 15:35:56

before the AO, who may duly examine the same and pass such further orders as may be warranted in the facts and circumstances of the case. 7. All rights and contentions of respective parties are kept open.

YASHWANT VARMA, J.

RAVINDER DUDEJA, J. SEPTEMBER 2, 2024/neha

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 06/09/2024 at 15:35:56

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