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Delhi High Court – Orders
Carol Infrastructure Private Limited vs Assistant Commissioner Of Income … on 15 April, 2025
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~58
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 3506/2025 & CM APPL. 16388/2025
CAROL INFRASTRUCTURE PRIVATE LIMITED.....Petitioner
Through: Mr. Sumit Lal Chandani, Mr. Shivam
Yadav, Ms. Ananya Kapoor,
Advocates.
versus
ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL
CIRCLE27, DELHI & ANR. .....Respondents
Through: Mr Gaurav Gupta, SSC, Mr
Shivendra Singh, Mr Yojit Pareek,
JSCs and Ms Prakriti Rastogi,
Advocate.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
HON'BLE MR. JUSTICE TEJAS KARIA
ORDER
% 15.04.2025
1. Though the matter was scheduled for hearing on 14.04.2025, it was
declared a holiday on account of the birthday of Dr B R Ambedkar and
therefore, the matter has been taken up today in view of the Notification
No.10/G-4/Genl-I/DHC dated 07.04.2025, issued by this court.
2. The petitioner has filed the present petition, inter alia, impugning the
notice dated 19.12.2023 [impugned notice] issued under Section 153C of
the Income Tax Act, 1961 [the Act] in respect of the Assessment Year [AY]
2018-19 as well as the proceedings initiated pursuant to the impugned
notice.
3. It is pointed out that the petitioner [Assessee] had filed its return of
income for the AY 2018-19 on 27.10.2018. Thereafter, on 24.03.2022 the
Assessing Officer [AO] issued a notice under Section 148A(b) of the Act
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and called upon the petitioner to show cause why the assessment for the
relevant assessment year [AY 2018-19] not be opened on the basis of the
information as available with the AO. Thereafter, pursuant to the said notice,
an order dated 25.04.2022 was passed under Section 148A(d) of the Act
holding that it was a fit case for issuance of notice under Section 148 of the
Act. Whilst, the said proceedings were pending, on 20.07.2022, search and
seizure operation was carried out in the case of SMC Group. Apparently,
certain material was found during those proceedings which had a bearing on
the income of the Assessee. Accordingly, a notice under Section 153C of the
Act was issued.
4. As noted above, the Assessee seeks to challenge the proceedings
initiated pursuant to the said notice. The satisfaction note recorded by the
AO of the searched entity indicates that it was found that the bank account
of the Assessee for Financial Year [FY] 2014-15 contained certain entries
aggregating to a sum of ₹1,27,00,000/-. Thereafter, the AO exercising
jurisdiction in the case of Assessee also recorded his satisfaction that the
information had a bearing on the assessment of the income of the Assessee.
5. It is noted from the above, that there is no information available,
which would remotely suggest that the income of the Assessee for the
financial year relevant to AY 2018-19 had escaped assessment. As
mentioned in the satisfaction note, the information pertained to the FY 2014-
15. Thus, there is no incriminating material on the basis of which the
assessment for the AY 2018-19 could be reopened under Section 153C of
the Act.
6. The question whether the notice under Section 153C of the Act could
be issued in respect of the assessment year for which no incriminating
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 22/04/2025 at 21:21:38
material is found during the search conducted on another person, is no
longer res integra. The said issue is covered by the earlier decision of this
court in Commissioner of Income Tax (Central)-III v. Kabul Chawla :
Neutral Citation : 2015:DHC:7044-DB; decision of the Gujarat High Court
in Pr. CIT v. Saumya Constructions (P) Limited :2016 SCC Online Guj
9976 and the decision of the Supreme Court in Principal Commissioner of
Income Tax, Central-3 v. Abhisar Buildwell Private Ltd : (2024) 2 SCC
433.
7. Concededly, a similar issue was also considered by this court in
Saksham Commodities Limited v. Income Tax Officer Ward 22(1), Delhi
& Another : Neutral Citation : 2024:DHC:2836-DB. The Special Leave
Petition [Special Leave Petition (Civil) Diary No.51947/2024] against the
said decision was dismissed by the Supreme Court on 16.12.2024.
8. In view of the above, the present petition is allowed and the impugned
notice dated 19.12.2023 in respect of the AY 2018-19 and proceedings
initiated pursuant thereto are set aside.
9. The petition is disposed of in the above terms. The pending
application is also disposed of.
VIBHU BAKHRU, J
TEJAS KARIA, J
APRIL 15, 2025
M
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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 22/04/2025 at 21:21:39
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