AUTOMATIC DATA PROCESSING LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX & ANR.

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W.P.(C)/16682/2024HC DelhiDLHC01088250202403 December 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court set aside the impugned order dated 30.08.2024 passed under Section 148A(d) and the notice dated 31.08.2024 issued under Section 148 of the Income Tax Act, 1961. The Court remanded the matter to the Assessing Officer (AO) for fresh consideration. This decision was based on the Revenue's submission that the petitioner's contentions, provided in response to the notice under Section 148A(b), were not fully considered. The AO is directed to pass an apposite order under Section 148A(d) within four weeks from the date of the order. The Court clarified that all contentions of the parties are reserved. No specific finding was made on the merits of the re-opening proceedings themselves, as the matter was remanded for procedural compliance.

What were the facts?

The petitioner, Automatic Data Processing Limited, filed a writ petition before the Delhi High Court challenging an order dated 30.08.2024 passed under Section 148A(d) of the Income Tax Act, 1961, and a notice dated 31.08.2024 issued under Section 148 of the Act. These actions were taken by the Assistant Commissioner of Income Tax for re-opening the petitioner's assessment for the assessment year 2018-19. The revenue, through its counsel, submitted that the petitioner's contentions, provided in response to a notice under Section 148A(b), were not fully considered. Consequently, the revenue requested a remand of the matter to the Assessing Officer for a fresh consideration.

What were the issues?

1. Whether the Assessing Officer (AO) properly considered all contentions furnished by the petitioner in response to the notice issued under Section 148A(b) of the Income Tax Act, 1961, before passing the order under Section 148A(d) and issuing the notice under Section 148 of the Act for the assessment year 2018-19? The Assessee (Petitioner) contended that its submissions in response to the Section 148A(b) notice were not adequately considered, leading to the impugned order and notice. The Revenue (Respondents) conceded that not all contentions of the petitioner were considered and therefore agreed to a remand of the matter to the Assessing Officer for a fresh consideration.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

$~94 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 16682/2024 & CM APPL. 70595/2024

AUTOMATIC DATA PROCESSING LIMITED .....Petitioner

Through: Mr. Ajay Vohra, Senior Advocate

with Mr. Aditya Vohra and Mr.

Shashvat Dhamija, Advocates

versus

ASSISTANT COMMISSIONER OF INCOME

TAX & ANR.

.....Respondents

Through: Mr. Puneet Rai, SSC with Mr.

Ashvini Kumar and Mr. Rishabh

Nangia, JSCs

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU

HON'BLE MS. JUSTICE SWARANA KANTA SHARMA

O R D E R %

03.12.2024 CM APPL. 70596/2024 (Exemption) 1. Allowed, subject to all just exceptions. 2. Application stands disposed of. W.P.(C) 16682/2024 3. The petitioner has filed the present petition inter alia impugning an order dated 30.08.2024 passed under Section 148A(d) of the Income Tax Act, 1961 (hereafter the Act) and the notice dated 31.08.2024 issued under Section 148 of the Act for re-opening the petitioner’s assessment for the assessment year (AY) 2018-19. 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 09/12/2024 at 13:01:26

4.

At the outset, the learned counsel appearing for the Revenue submits that all contentions of the petitioner, furnished in response to the notice dated 09.08.2024 issued under Section 148A(b) of the Act, were not considered and therefore, the matter may be remanded to the Assessing Officer (AO) for considering afresh. The said course commends to us. 5. Accordingly, we set aside the impugned order dated 30.08.2024 passed under Section 148A(d) of the Act as well as the notice dated 31.08.2024 issued under Section 148 of the Act, and remand the matter to the AO to consider it afresh, including in the light of the averments made in the present petition. 6. Let an apposite order under Section 148A(d) of the Act be passed within a period of four weeks from date. 7. It is clarified that all contentions of the parties are reserved. 8. The petition is disposed of in above terms.

VIBHU BAKHRU, J

SWARANA KANTA SHARMA, J DECEMBER 03, 2024 ns

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 09/12/2024 at 13:01:26

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