Delhi High Court – Orders
Altaf Husain vs Income Tax Officer on 8 January, 2025
Author: Vibhu Bakhru
Bench: Tushar Rao Gedela, Vibhu Bakhru
$~9
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 17702/2024 & CM APPL. 75339/2024
ALTAF HUSAIN .....Petitioner
Through: Ms. Shreya Jain and Mr. Gaurav
Tanwar, Advocates
versus
INCOME TAX OFFICER .....Respondent
Through: Mr. Shlok Chandra, SSC with Ms.
Naincy Jain and Ms. Madhavi Shukla,
JSCs
CORAM:
HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MR. JUSTICE TUSHAR RAO GEDELA
ORDER
% 08.01.2025
1. Issue notice.
2. The learned counsel for the respondent accepts notice.
3. The petitioner has filed the present petition, inter alia, praying as
under:-
“a) allow the present Writ Petition and issue any writ, order or direction in
the nature of Mandamus and/or Certiorari and/or any other writ, order or
direction in the nature thereof to quash/set aside the Impugned Order u/s
148A(d) of the Act dated 19.03.2024 and Impugned Notice u/s 148A(b) of
the Act dated 19.01.2024 and Impugned Notice u/s 148 of the Act dated
19.03.2024 issued to the Petitioner for AY 2017-18, by the Respondent &
all proceedings
b) Pass any other such orders as this Hon’ble Court may deem fit and
proper in the facts and circumstances of the case in favour of the Petitioner
and against the Respondent.”
4. The petitioner impugns an order dated 19.03.2024 (hereafter the
impugned order) passed under Section 148A(d) of the Income Tax Act,
1961 (hereafter the Act) issued in respect of Assessment Year (AY) 2017-
18. The petitioner also impugns a notice dated 19.03.2024 issued under
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Section 148 of the Act in respect of AY 2017-18.
5. The impugned order was passed pursuant to a notice dated 19.01.2024
issued under Section 148A(b) of the Act whereby certain information –
which according to the Assessing Officer (AO) is suggestive of the
petitioner’s income escaping assessment – was shared with the petitioner
and he was called upon to show cause why the income for the relevant
assessment year had not been assessed under Section 147 of the Act.
6. The information as set out in the said notice is, essentially, to the
effect that certain deposits were made in the bank account aggregating
₹16,38,000/- (₹12,98,000 + ₹3,40,000). According to the AO, the said
deposits were suggestive of the petitioner’s income escaping assessment.
Additionally, the AO also referred to a transaction regarding sale of an
immovable property for a sum of ₹65,00,000/-. The AO, thus quantified the
income escaping assessment in respect of AY 2017-18 at ₹81,38,000/-
(₹65,00,000/- + ₹3,40,000/- + ₹12,98,000/-).
7. The petitioner contests the said suggestion on the ground that the
amount of ₹65,00,000/- being the sale proceeds of an immovable property in
question, could not possibly represent the income that had escaped
assessment. This contention is founded on the basis that the said immovable
property was purchased in the previous year (FY 2015-16) for a sum of
₹60,00,000/- and that amount had been taxed by the AO in the assessment
year 2016-2017 relevant to FY 2015-16 as unexplained income. It is
contented that since the entire purchase consideration of the property in
question being ₹60,00,000/- was taxed as unexplained income, the sale
proceeds amounting to ₹65,00,000/- could not represent any undisclosed
income. At best, a sum of ₹5,00,000/- (₹65,00,000/- less ₹60,00,000/-) could
This is a digitally signed order.
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be considered by the AO as income that had escaped assessment and
warranting an explanation from the petitioner.
8. The present petition was listed on 23.12.2024 and this court had
directed the petitioner to produce all necessary documents to establish that
the purchase consideration had been taxed by the AO in the earlier
assessment year 2016-17. The learned counsel for the respondent was also
directed to obtain the necessary instructions.
9. Pursuant to the aforesaid order, the petitioner has filed additional
documents which indicates that the property in question (property bearing
address C-7/31, Yamuna Vihar, Delhi-110053) has been purchased in terms
of a deed dated 08.04.2016 for a consideration of ₹60,00,000/- and the said
amount was taxed as unexplained expenditure during the FY 2015-2016
relevant to the assessment year 2016-2017. The petitioner has also produced
a copy of the sale deed dated 08.04.2016 indicating that the aforesaid
property was sold for a consideration of ₹65,00,000/-.
10. Undisputably, if the aforesaid facts are correct, the sale proceeds of
₹65,00,000/- could not be considered as unexplained income by the AO.
11. Mr. Chandra, the learned counsel appearing for the Revenue submits
that since the documents, which have now been filed by the petitioner, had
not been produced by the AO in response to the notice dated 19.01.2024
issued under Section 148A(b) of the Income Tax Act, the matter may be
remanded to the AO for consideration afresh.
12. The said course commends to this court. Accordingly, we set aside the
impugned order dated 19.03.2024 passed under Section 148A(d) of the Act
in respect of AY 2017-18 and remand the matter to the AO for consideration
afresh in light of the averments made in the present petition and the
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documents filed in this petition.
13. The AO shall also be entitled to call upon the petitioner to furnish
such other documents, if the AO considers relevant for taking an informed
decision.
14. Consequently, the impugned notice issued under Section 148 of the
Act is also set aside.
15. The petition is disposed of in the above terms.
VIBHU BAKHRU, ACJ
TUSHAR RAO GEDELA, J
JANUARY 08, 2025
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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 15/01/2025 at 21:20:09