Delhi High Court – Orders
Neera Gupta vs Ito, Ward 46(4), Delhi on 17 December, 2024
Author: Vibhu Bakhru
Bench: Tushar Rao Gedela, Vibhu Bakhru
$~57
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 17363/2024, CM APPL. 73916/2024 & CM APPL.
73917/2024
NEERA GUPTA .....Petitioner
Through: Ms. Rano Jain, Mr. Venketesh
Chaurasia, Ms. Renu Arora, Ms.
Sakshi Rustagi and Ms. Sakshi
Srivastava, Advocates.
versus
ITO, WARD 46(4), DELHI .....Respondent
Through: Mr. Siddhartha Sinha, Senior
Standing Counsel with Ms. Anjula
Pethia, Ms. Anu Priya Nisha Minz
and Mr. Srikant Singh, Advocates.
CORAM:
HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MR. JUSTICE TUSHAR RAO GEDELA
ORDER
% 17.12.2024
1. The petitioner has filed the present petition, inter alia, impugning a
notice dated 16.10.2024 (hereafter the impugned notice) issued under
Section 148 of the Income Tax Act, 1961 (hereafter the Act) for the
assessment year (AY) 2016-17.
2. The petitioner also impugns the notice issued under Section 148A(b)
of the Act, and the order passed under Section 148A(d) of the Act prior to
the issuance of the impugned notice.
3. The learned counsel appearing for the petitioner submits that the issue
stands covered by the decision of this Court in Manju Somani v. Income
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Tax Officer Ward-70(1) & Ors: Neutral Citation: 2024:DHC:5411-DB.
4. Learned counsel also referred to the decision of the Supreme Court in
Union of India & Others v. Rajeev Bansal : 2024 SCC OnLine SC 2693
and drew the attention of this Court to the following passages from the said
judgment:
“46. The ingredients of the proviso could be
broken down for analysis as follows: (i) no notice
under Section 148 of the new regime can be issued
at any time for an assessment year beginning on or
before 1 April 2021; (ii) if it is barred at the time
when the notice is sought to be issued because of
the “time limits specified under the provisions of”
149(1)(b) of the old regime. Thus, a notice could
be issued under Section 148 of the new regime for
assessment year 2021-2022 and before only if the
time limit for issuance of such notice continued to
exist under Section 149(1)(b) of the old regime.
*** *** ***
49. The first proviso to Section 149(1)(b) requires
the determination of whether the time limit
prescribed under Section 149(1)(b) of the old
regime continues to exist for the assessment year
2021-2022 and before. Resultantly, a notice under
Section 148 of the new regime cannot be issued if
the period of six years from the end of the relevant
assessment year has expired at the time of issuance
of the notice. This also ensures that the new time
limit of ten years prescribed under Section
149(1)(b) of the new regime applies prospectively.
For example, for the assessment year 2012-2013,
the ten year period would have expired on 31
March 2023, while the six year period expired on
31 March 2019. Without the proviso to Section
149(1)(b) of the new regime, the Revenue could
have had the power to reopen assessments for the
year 2012-2013 if the escaped assessment
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amounted to Rupees fifty lakhs or more. The
proviso limits the retrospective operation of
Section 149(1)(b) to protect the interests of the
assesses.”
5. In the present case, the period of six years from the end of the relevant
(AY) 2016-17 expired on 31.03.2023. The impugned notice has been issued
thereafter, and the same is thus barred by limitation.
6. The learned counsel for the respondent concurs with the aforesaid
view.
7. In view of the above, the impugned notice is set aside.
8. The petition is allowed in the aforesaid terms. Pending application
also stands disposed of.
VIBHU BAKHRU, ACJ
TUSHAR RAO GEDELA, J
DECEMBER 17, 2024
yrj
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