GOLDENDAYS CREATIONS PRIVATE LIMITED vs. INCOME TAX OFFICER WARD 10 1 DELHI ANR & ANR.

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W.P.(C)/16760/2024HC DelhiDLHC01088796202405 December 2024Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE TUSHAR RAO GEDELA2 pages
AI SummaryAllowed

What did the High Court hold?

The Delhi High Court allowed the writ petition. The Court held that the impugned notice dated August 29, 2024, issued under Section 148 of the Income Tax Act, 1961, for reopening the assessment for AY 2015-16, was barred by limitation. The reasoning was based on the established decisions of the Delhi High Court in Dinesh Jindal, Ojjus Medicare Pvt. Ltd, and KAD Housing Private Limited. These decisions stipulate that the ten-year period for reopening assessments must be reckoned from the end of the assessment year relevant to the previous year in which the Section 148 notice was issued. The Revenue's counsel concurred with this proposition. Consequently, the impugned notice was set aside. The petition was disposed of in these terms, and pending applications were also disposed of.

What were the facts?

The petitioner, Goldendays Creations Private Limited, filed a writ petition challenging a notice dated August 29, 2024, issued under Section 148 of the Income Tax Act, 1961. This notice sought to reopen the assessment for Assessment Year (AY) 2015-16. The petitioner's primary contention was that the impugned notice was issued beyond the period of limitation. The Revenue, represented by its counsel, accepted notice and concurred with the proposition of law relied upon by the petitioner.

What were the issues?

1. Whether the notice dated August 29, 2024, issued under Section 148 of the Income Tax Act, 1961, for reopening the assessment for AY 2015-16 is barred by limitation? (Question of law) Assessee's Contention: The impugned notice has been issued beyond the period of limitation. The assessee relies on the decisions of the Delhi High Court in Dinesh Jindal v. Assistant Commissioner of Income Tax, Central Circle 20, Delhi & Others, The Pr. Commissioner of Income Tax - Central-1 v. Ojjus Medicare Pvt. Ltd, and KAD Housing Private Limited v. Deputy Commissioner of Income Tax Central Circle-6, Delhi. Revenue's Contention: The learned counsel for the Revenue concurs with the proposition that the period of ten years is required to be reckoned from the end of the assessment year, which is relevant to the previous year in which the notice under Section 148 of the Act has been issued.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

$~54 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 16760/2024 CM APPL. 70937/2024 GOLDENDAYS CREATIONS PRIVATE LIMITED .....Petitioner Through: Mr Mani Bhadra Jain, Mr Dipesh Sharma and Mr Sushant Singhal, Advocates. versus INCOME TAX OFFICER WARD 10 1 DELHI & ANR. .....Respondents Through: Mr Shlok Chandra, SSC, Ms Madhavi Shukla and Ms Naincy Jain, JSCs for the Revenue. CORAM: HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 05.12.2024 1. Issue notice. The learned counsel for the respondents accepts notice. 2. The petitioner has filed the present petition, inter alia, impugning the notice dated 29.08.2024 issued under Section 148 (hereafter the impugned notice) of the Income Tax Act, 1961 (hereafter the Act) seeking to reopen the assessment in respect of the assessment year (AY) 2015-16. 3. The petitioner’s case is that the impugned notice has been issued beyond the period of the limitation. 4. Concededly, the issue involved in the present case is covered by the earlier decision of this court in Dinesh Jindal v. Assistant Commissioner of Income Tax, Central Circle 20, Delhi & Others: Neutral Citation: 2024: DHC:4554-DB as well as the decision in the case of The Pr. Commissioner of Income Tax - Central-1 v. Ojjus Medicare Pvt. Ltd : Neutral Citation : 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 13:02:39

2024:DHC: 2629-DB and KAD Housing Private Limited v. Deputy Commissioner of Income Tax Central Circle-6, Delhi : Neutral Citation : 2024:DHC:8214-DB. 5. In terms of the aforesaid decisions, the period of ten years is required to be reckoned from the end of the assessment year, which is relevant to the previous year in which the notice under Section 148 of the Act has been issued. 6. The learned counsel appearing for the Revenue concurs with the aforesaid proposition. 7. In view of the above, the present petition is allowed. The impugned notice is set aside as being barred by limitation. 8. The petition is disposed of in the aforesaid terms. Pending applications also stand disposed of. ACTING CHIEF JUSTICE TUSHAR RAO GEDELA, J DECEMBER 05, 2024 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 09/12/2024 at 13:02:39

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