PRATISHTHA GARG vs. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 25 DELHI

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W.P.(C)/16878/2024HC DelhiDLHC01089497202419 December 2024Bench: HON'BLE MR. JUSTICE TUSHAR RAO GEDELA,HON'BLE THE ACTING CHIEF JUSTICE3 pages
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What did the High Court hold?

The Delhi High Court held that the impugned order dated 19.07.2022 passed under Section 148A(d) of the Income Tax Act, 1961, and the notice dated 19.07.2022 issued under Section 148 of the Act, in respect of AY 2015-16, are liable to be set aside. This decision was based on the concession made by the Revenue before the Supreme Court in Union of India and Others vs. Rajeev Bansal (2024 SCC OnLine SC 2693). The Revenue conceded that for AY 2015-16, all notices issued on or after April 1, 2021, would have to be dropped as they would not fall within the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The Court directed accordingly. The petition was allowed in these terms, and pending applications were disposed of.

What were the facts?

The petitioner, Pratishtha Garg, filed a writ petition before the Delhi High Court challenging several notices and orders issued under Sections 148 and 148A of the Income Tax Act, 1961, pertaining to Assessment Year (AY) 2015-16. The impugned actions included a notice dated 22.06.2021 under Section 148, a notice dated 25.05.2022 under Section 148A(b), an order dated 19.07.2022 under Section 148A(d), and a notice dated 19.07.2022 under Section 148. Additionally, a subsequent notice dated 14.08.2024 under Section 148A(b) and an order dated 31.08.2024 under Section 148A(d) for the same AY were also challenged. The petitioner sought to quash these notices and orders and restrain the respondent, Assistant Commissioner of Income Tax, from proceeding further.

What were the issues?

1. Whether the notices and orders issued under Sections 148 and 148A of the Income Tax Act, 1961, for AY 2015-16, are liable to be quashed in light of the Supreme Court's decision in Union of India vs. Rajeev Bansal. The Revenue, through its counsel, conceded that the petitioner's prayers should be allowed. This concession was based on the Supreme Court's decision in Union of India and Others vs. Rajeev Bansal: 2024 SCC OnLine SC 2693, specifically paragraph 19(f). The Revenue acknowledged that for AY 2015-16, all notices issued on or after April 1, 2021, would not fall within the prescribed period of limitation as explained by the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The Revenue also referred to a similar petition, Ibibo Group Pvt. Ltd. vs. Assistant Commissioner of Income Tax Circle, which was allowed by a Coordinate Bench of the Delhi High Court based on the same concession.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149,Section 151

AI-generated summary — verify with the full judgment below

$~78 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 16878/2024 CM APPL. 71476/2024

PRATISHTHA GARG

.....Petitioner Through: Mr. Sumit Lalchandani, Mr. Salil Kapoor, Mr. Tarun Chanana and Ms. Ananya Kapoor, Advocates.

versus

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 25 DELHI

.....Respondent Through: Mr. Gaurav Gupta, SSC alongwith Mr. Shivendra Singh and Mr. Yojit Pareek, JSCs for IT Department Revenue.

CORAM:

HON'BLE THE ACTING CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

19.12.2024 1. The petitioner has filed the present petition, inter alia, praying as under: “A. Issue a writ in the nature of Certiorari to quash the impugned notice dated 22.06.2021 issued under section 148 of the Act; and the consequential notice 25.05.2022 issued under section 148A(b) of the Act; the impugned order dated 19.07.2022 passed under section 148A(d) of the Act and the impugned notice dated 19.07.2022 issued under section 148 of the Act in the case of the petitioner for AY 2015-16;

B. Issue a writ in the nature of Certiorari to quash the impugned notice dated 14.08.2024 issued under section 148A(b) of the Act; the impugned order 44 W.P.(C)-16878/2024 dated 31.08.2024 passed under section 148A(d) of the Act in the case of the Petitioner for AY 2015-16;

C. Issue a writ in the nature of Prohibition to restrain the Respondent from giving effect to/proceeding further pursuant to the impugned notice dated 19.07.2022 for AY 2015-16; 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 30/12/2024 at 12:10:33

D. Issue any other Writ, order, or Direction which this Hon’ble Court may deem fit and proper in the facts and circumstances of the case; and

E. To allow the writ petition with cost in favor of the Petitioner and against the Respondent.”

2.

Learned counsel for the Revenue fairly states that the prayers made by the petitioner are required to be allowed as the same are covered by the concession made by the Revenue before the Supreme Court in Union of India and Others vs. Rajeev Bansal: 2024 SCC OnLine SC 2693, 2024 INSC 754, as recorded in paragraph 19 (f) of the said decision. He also submits that the Coordinate Bench of this Court had, after noting the aforesaid concession, allowed a similar petition - Ibibo Group Pvt. Ltd. vs. Assistant Commissioner of Income Tax Circle: W.P.(C) 17639/2022 by order dated 13.12.2024. 3. It is relevant to note paragraph 19 (e) and (f) of the decision of the Supreme Court in Union of India and Others vs. Rajeev Bansal; 2024 SCC OnLine SC 2693. The same are set out as under: “(e) The Finance Act, 2021 (2021) ((2021) 432 ITR (Stat) 52) substituted the fold regime for reassessment with a new regime. The first provisio to section 149 does not expressly bar the application of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, Section 3 of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 applies to the entire Income-tax Act, including sections 149 and 151 of the new regime. Once the first proviso to section 149(1)(b) is read with Taxation and other Laws (Relxation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30, 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 will be 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 30/12/2024 at 12:10:33

within the period of limitation as explained in the tabulation below:

Assessment Year

Within Years Expiry of Limitation read with TOLA for (2) (3) Within Six Years (4) Expiry of Limitation read with TOLA for (4) (5) 2013-2014 31.03.2017 TOLA not applicable. 31.03.2020 30.06.2021 2014-2015 31.03.2018 TOLA not applicable. 31.03.2021 30.06.2021 2015-2016 31.03.2019 TOLA not applicable. 31.03.2022 TOLA not applicable. 2016-2017 31.03.2020 TOLA not applicable. 31.03.2023 TOLA not applicable. 2017-2018 31.03.2021 TOLA not applicable. 31.03.2024 TOLA not applicable.

(f) The Revenue concedes that for the assessment year 2015- 2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.”

4.

In view of the aforesaid, the impugned order dated 19.07.2022 issued under Section 148(A)(d) of the Income Tax Act,1961 (hereafter the Act) as well as the notice dated 19.07.2022 issued under Section 148 of the Act in respect of AY 2015-16 are liable to be set aside. It is so directed. 5. The petition is allowed in the aforesaid terms. 6. Pending application also stands disposed of.

VIBHU BAKHRU, ACJ

TUSHAR RAO GEDELA, J DECEMBER 19, 2024/kct 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 30/12/2024 at 12:10:33

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