GUL PROPERTIES PVT LTD vs. ASSISTANT COMMISSIONER OF INCOME TAX OSD RANGE 10 DELHI & ORS.

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W.P.(C)/13839/2024HC DelhiDLHC01066911202401 October 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA2 pages
AI SummaryAllowed

What did the High Court hold?

The Delhi High Court held that the issue involved in the present petition was covered by the decision of a Coordinate Bench of the same Court in Manju Somani v. Income Tax Officer Ward-70(1) & Ors. Consequently, the Court set aside the impugned notices dated 24.08.2024 (under Section 148A(b)) and 31.08.2024 (under Section 148) of the Income Tax Act, 1961. The impugned order dated 31.08.2024 under Section 148A(d) was also set aside. The ratio decidendi is that if notices for reopening are issued beyond the prescribed limitation period, they are liable to be quashed. The petition was allowed in terms of setting aside the notices and the order.

What were the facts?

The petitioner, Gul Properties Pvt Ltd, filed a writ petition before the Delhi High Court challenging a notice dated 24.08.2024 under Section 148A(b) of the Income Tax Act, 1961, for Assessment Year 2014-15. The petitioner also challenged the order dated 31.08.2024 under Section 148A(d) and a notice dated 31.08.2024 under Section 148 of the Act. The core of the petitioner's argument was that these notices were issued beyond the period of limitation, thus precluding the reopening of assessment for AY 2014-15.

What were the issues?

1. Whether the notices issued under Section 148A(b) and Section 148 of the Income Tax Act, 1961, for Assessment Year 2014-15, were issued beyond the period of limitation, thereby invalidating the reopening of assessment? (Question of law) Assessee's Contention: The notices were issued beyond the period of limitation, and therefore, the assessment for AY 2014-15 cannot be reopened. Revenue's Contention: The judgment records no specific contention from the revenue regarding the limitation period or the validity of the notices.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

$~76 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 13839/2024 & CM No.57960/2024 GUL PROPERTIES PVT LTD .....Petitioner Through: Mr. Ved Jain, Mr. Nischay Kantoor, Ms. Soniya, Mr. Divyansh Dubey & Mr. Govind Gupta, Advs. Versus ASSISTANT COMMISSIONER OF INCOME TAX OSD RANGE 10 DELHI & ORS. .....Respondents Through: Mr. Siddhartha Sinha, Ms. Dacchita Shahi, Ms. Anuja Pethia, Mr. Nring Chamwibo Zelian & Ms. Anu Priya Nisha Minz, Advs. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MS. JUSTICE SWARANA KANTA SHARMA O R D E R % 01.10.2024 CM No.57961/2024 (for exemption) 1. Exemption is allowed, subject to all just exceptions. 2. The application is disposed of. W.P.(C) 13839/2024 3. The petitioner has filed the present petition, inter alia, impugning a notice dated 24.08.2024 issued under Section 148A(b) of the Income Tax Act, 1961 (hereafter the Act) in respect of the Assessment Year 2014-15. The petitioner also impugns the order dated 31.08.2024 under Section 148A(d) of the Act as well as a notice dated 31.08.2024 under Section 148 of the Act. 4. It is the petitioner’s contention that the said notices were issued beyond the period of limitation and therefore, the assessment qua the Assessment Year 2014-15 cannot now be reopened. 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 09/10/2024 at 14:49:38

5.

Concededly, the issue involved in the present petition is covered by the decision of the Coordinate Bench of this Court in Manju Somani v. Income Tax Officer Ward-70(1) & Ors : Neutral Citation : 2024:DHC:5411-DB. 6. In view of the above, the impugned notices dated 24.08.2024 and 31.08.2024 issued under Section 148A(b) and Section 148 of the Act are set aside. The impugned order dated 31.08.2024 under Section 148A(d) of the Act is also set aside. 7. The petition is allowed in the aforesaid terms. VIBHU BAKHRU, J SWARANA KANTA SHARMA, J OCTOBER 01, 2024 ‘gsr’ 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 09/10/2024 at 14:49:38

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