IBIBO GROUP PRIVATE LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 10-1, & ANR.

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W.P.(C)/17639/2022HC DelhiDLHC01048981202213 December 2024Bench: HON'BLE MR. JUSTICE DHARMESH SHARMA,HON'BLE MR. JUSTICE YASHWANT VARMA3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that in view of the concession made by the Revenue before the Supreme Court in Union of India and Others vs. Rajeev Bansal, the reassessment action for AY 2015-2016 would not sustain. The Revenue had conceded that for AY 2015-2016, all notices issued on or after April 1, 2021, would have to be dropped as they would not fall for completion within the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Consequently, the impugned order under Section 148A(d) and the consequential notice under Section 148 were quashed and set aside. The ratio decidendi is that reassessment notices issued after April 1, 2021, for AY 2015-2016 are time-barred based on the Revenue's own concession and the interplay of the Finance Act, 2021, and the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.

What were the facts?

The petitioner, Ibibo Group Private Limited, filed a writ petition challenging the reassessment proceedings initiated under Section 148 of the Income Tax Act, 1961, for Assessment Year (AY) 2015-2016. The challenge was directed at the order passed under Section 148A(d) dated July 23, 2022, and the consequential notice under Section 148 of even date. The proceedings were initiated under the new reassessment regime introduced by the Finance Act, 2021. The court considered a concession made by the Revenue before the Supreme Court in the case of Union of India and Others vs. Rajeev Bansal.

What were the issues?

1. Whether the reassessment action initiated under Section 148 of the Income Tax Act, 1961, for AY 2015-2016 is valid, considering the provisions of the Finance Act, 2021, and the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The Assessee (Petitioner) argued that the reassessment notice was issued beyond the period of limitation as extended by the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, especially in light of the Revenue's concession before the Supreme Court. The Revenue (Respondents) conceded that for AY 2015-2016, all notices issued on or after April 1, 2021, would not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, and therefore, such notices would have to be dropped.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A(d),Section 149,Section 151

AI-generated summary — verify with the full judgment below

$~20 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 17639/2022

IBIBO GROUP PRIVATE LIMITED .....Petitioner Through: Mr. Salil Kapoor, Mr. Sumit Lalchandani, Mr. Salil Kapoor, Mr. Tarun Chanana, Ms. Ananya Kapoor, Mr. Utkarsa Gupta, Mr. Shivam Yadav, Advs.

versus

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 10-1, & ANR.

.....Respondents Through: Mr. Sanjay Kumar, Sr. SC with Ms. Monica Benjamin, Jr. SC and Ms. Easha Kadian, Jr. SC

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE DHARMESH SHARMA

O R D E R %

13.12.2024

1.

The instant writ petition assails the reassessment action initiated under Section 148 of the Income Tax Act, 1961 [“Act”] for Assessment Year [“AY”] 2015-2016. The petitioner has impugned the order referable to Section 148A(d) of the Act dated 23 July 2022 and the consequential notice under Section 148 of the Act which came to be issued on the same date. 2. We bear in mind the following concession which came to be recorded on behalf of the respondent before the Supreme Court in Union of India and Others vs. Rajeev Bansal [2024 SCC OnLine SC 2693] and relevant parts whereof are reproduced hereinbelow:- 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 17/12/2024 at 11:45:31

“(e) The Finance Act, 2021 ((2021) 432 ITR (Stat) 52) substituted the old regime for reassessment with a new regime. The first proviso 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 (Relaxation 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 within the period of limitation as explained in the tabulation below: Assessment Year Within 3 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 30.06.2021 31.03.2023 TOLA not applicable 2017-2018 31.03.2021 30.06.2021 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.”

3.

In view of the aforesaid, it is evident that the impugned reassessment action for AY 2015-16 would not sustain.

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 17/12/2024 at 11:45:31

4.

The writ petition is accordingly allowed. The impugned order under Section 148A(d) of the Act dated 23 July 2022 and consequential notice referable to Section 148 of even date are hereby quashed and set aside.

YASHWANT VARMA, J.

DHARMESH SHARMA, J. DECEMBER 13, 2024 sp

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 17/12/2024 at 11:45:31

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