Elite Wealth Limited vs National Faceless Assessment Centre & … on 17 April, 2025

Delhi High Court – Orders

Elite Wealth Limited vs National Faceless Assessment Centre & … on 17 April, 2025

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                                    $~113
                                    *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +     W.P.(C) 4911/2025 & CM APPL. 22561/2025
                                          ELITE WEALTH LIMITED                               .....Petitioner
                                                           Through: Mr. Rohit Jain, Ms. Manisha Sharma,
                                                                    Mr. Ram Karshna Rao, Advocates.
                                                           versus
                                          NATIONAL FACELESS ASSESSMENT CENTRE
                                          & ORS.                                        .....Respondents
                                                           Through: Mr. Vikramaditya Singh, JSC with
                                                                    Mr. Debesh Panda, SSC; Ms. Zehra
                                                                    Khan, JSC and Ms. Yashika Gupta,
                                                                    Advocate.

                                                CORAM:
                                                HON'BLE MR. JUSTICE VIBHU BAKHRU
                                                HON'BLE MR. JUSTICE TEJAS KARIA
                                                             ORDER

% 17.04.2025

CM APPL. 22562/2025(Exemption)

1. Exemption is allowed, subject to all just exceptions.

2. The application is disposed of.

W.P.(C) 4911/2025

3. Issue notice. The learned counsel appearing for the Respondent
accepts notice.

4. The Petitioner has filed the present petition, inter alia, praying as
under:

“(I) A writ in the nature of mandamus/ certiorari or any other
appropriate writ, order or direction for quashing/setting aside:

(i) the notice dated 15.03.2024 issued by Respondent
No.2 under section 148A(b) of the Income Tax Act,
1961(‘the Act’) for assessment year 2017-18; and

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(ii) the order dated 30.03.2024 passed by Respondent
No.2 [allegedly with the prior approval of Respondent
No.3] under section 148A(d), and the consequent
initiation of reassessment proceedings vide notice dated
30.03.2024 issued under section 148 of the Act for
assessment year 2017-18, and all proceedings/ actions
consequent thereto; and

(iii) the assessment order dated 22.03.2025 passed for
the assessment year 2017-18 by Respondent No.1 under
section 147 read with section 144B of the Act and the
accompanying notice of demand of even date issued
under section 156 of the Act as well as notice for
initiating penalty proceedings under section
271AAC(1) of even date and all consequential
proceedings initiated thereunder;

5. The Petitioner impugns the Assessment Order dated 22.03.2025 on
the ground that it has been passed in violation of the principle of natural
justice.

6. It is the Petitioner’s case that it is a registered stock broker and
maintains a separate bank account for its clients. He submits that the
Petitioner’s income is only confined to the brokerage earned on the
transaction of sale and purchase of shares on behalf of its clients. However,
the Assessing Officer [AO] has taxed the entire entries in the clients’ bank
account as the Petitioner’s income. It is also contended that the said
Assessment Order is based on an enquiry report which is not provided to the
Petitioner.

7. A bare perusal of the impugned Assessment Order, prima facie
indicates that the AO has not examined the Petitioner’s contentions
regarding maintaining a separate bank account for its clients, as mandatorily

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required.

8. The Assessment Order appears to have been passed solely on the
basis of an enquiry report, without addressing the contentions advanced by
the Petitioner.

9. In view of the above, the impugned Assessment Order and further
proceedings pursuant thereto, are stayed till the next date of hearing.

10. Let a counter-affidavit, if necessary; be filed within a period of three
weeks from date. Rejoinder thereto, if any, be filed before the next date of
hearing.

11. List on 07.07.2025.

VIBHU BAKHRU, J

TEJAS KARIA, J
APRIL 17, 2025/sms

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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 24/04/2025 at 21:17:09