PICCADILY HOTELS PVT LTD vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 19 (1) DELHI

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W.P.(C)/16602/2024HC DelhiDLHC01087601202412 December 2024Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE TUSHAR RAO GEDELA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court set aside the impugned order dated 05.04.2024 passed under Section 148A(d) and the consequential notice dated 05.04.2024 issued under Section 148 of the Income Tax Act, 1961. The Court granted the petitioner an opportunity to file its response to the notice under Section 148A(b) within two weeks from the date of the order. The Assessing Officer (AO) is directed to consider this response and pass an appropriate order within four weeks thereafter. If the AO deems it a fit case for issuing a notice under Section 148, they must obtain the necessary approval from the concerned Chief Commissioner of Income Tax, as was required at the material time. The Court disposed of the petition on these terms, acknowledging the Revenue's concession for a fresh opportunity.

What were the facts?

The petitioner, Piccadily Hotels Pvt Ltd, filed a writ petition before the Delhi High Court challenging an order dated 05.04.2024 passed under Section 148A(d) and a consequential notice issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2017-18. The petitioner contended that it did not receive the notice dated 20.03.2024 issued under Section 148A(b) as it was sent to the email ID of an erstwhile director, preventing them from responding. Consequently, the Assessing Officer (AO) passed the impugned order and issued the notice under Section 148. The Revenue, through its counsel, conceded that the petitioner should be given another opportunity to respond to the notice dated 20.03.2024.

What were the issues?

1. Whether the impugned order dated 05.04.2024 passed under Section 148A(d) and the consequential notice issued under Section 148 of the Income Tax Act, 1961, are liable to be quashed on the ground that the petitioner did not receive the prior notice under Section 148A(b)? Assessee's Contention: The petitioner argued that it did not receive the notice dated 20.03.2024 issued under Section 148A(b) because it was sent to the e-mail ID of an erstwhile director, thereby preventing them from responding to the same. This procedural lapse vitiates the subsequent order and notice. Revenue's Contention: The Revenue, through its counsel, fairly stated that the petitioner should be granted one more opportunity to respond to the notice dated 20.03.2024, without prejudice to the issue of whether the earlier notice was served.

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) 16602/2024 and CM APPL. 70185/2024 PICCADILY HOTELS PVT LTD .....Petitioner Through: Mr Mayank Nagi with Ms Husnal Syali Nagi and Mr Tarun Singh, Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 19 (1) DELHI .....Respondent Through: Mr Puneet Rai, SSC with Mr Ashvini Kumar, Mr Rishabh Nangia and Mr Nikhil Jain, Advocates. CORAM: HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 12.12.2024 1. The petitioner has filed the present petition, inter alia, praying as under: “(a) a Writ of Certiorari under Article 226/227 of the Constitution of India quashing the impugned Order dated 05.04.2024 passed u/s 148A(d) and the consequential Notice issued u/s 148 of the Act by the Respondent; (b)A Writ of Prohibition of Writ, order or direction in the nature of Prohibition, or any appropriate Writ, order of direction under Article 226/227 of the Constitution restraining the Respondent from proceeding with or giving effect to the impugned Order dated 05.04.2024 issued u/s 148A(d) of the Act and the consequential Notice issued u/s 148, during the pendency of the present Writ Petition.” 2. It is the petitioner’s case that it had not received the notice dated 20.03.2024 issued under Section 148A(b) of the Income Tax Act, 1961 (hereafter the Act) as the same was sent to the e-mail ID of the erstwhile director of the petitioner’s company. Consequently, the petitioner has been 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 19/12/2024 at 13:05:31

unable to respond to the said notice. 3. Since no response was received from the petitioner, the Assessing Officer (AO) proceeded to pass an order dated 05.04.2024 under Section 148A(d) of the Act holding that it is a fit case for issuing a notice under Section 148 of the Act for the assessment year (AY) 2017-18. The AO also proceeded to issue such a notice under Section 148 of the Act. 4. Learned counsel appearing for the Revenue fairly states on instructions that the petitioner may be given one more opportunity to respond to the notice dated 20.03.2024 without going into the question whether the earlier notice was served on the petitioner or not. 5. In view of the above, the impugned order dated 05.04.2024 passed under Section 148A(d) of the Act as well as the notice dated 05.04.2024 issued under Section 148 of the Act are set aside. The petitioner may file its response to the notice under Section 148A(b) of the Act within a period of two weeks from date. The AO shall consider the same and pass an appropriate order within a period of four weeks thereafter. In the event, the AO considers that it is a fit case for issuing notice under Section 148 of the Act, it will obtain necessary approval from the concerned Chief Commissioner of Income Tax as was the requirement at the material time. 6. The petition is disposed of in the aforesaid terms. Pending application also stands disposed of. VIBHU BAKHRU, ACJ TUSHAR RAO GEDELA, J DECEMBER 12, 2024/tr 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 19/12/2024 at 13:05:31

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