Delhi High Court – Orders
M D Overseas Private Limited vs Deputy Commissioner Of Income Tax … on 16 January, 2025
Author: Vibhu Bakhru
Bench: Tushar Rao Gedela, Vibhu Bakhru
$~60
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 13159/2024 & CM APPL. 54975/2024
M D OVERSEAS PRIVATE LIMITED .....Petitioner
Through: Mr. Ved Jain, Mr. Nishay Kantoor,
Ms. Sonia Dodeja, Divyansh Dubey
and Govind Gupta, Advocates
versus
DEPUTY COMMISSIONER OF INCOME
TAX CENTRAL CIRCLE 14 & ORS .....Respondents
Through: Mr. Sanjay Kumar, SSC with Ms.
Monica Benjamin and Ms. Easha
Kadian, JSCs
CORAM:
HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MR. JUSTICE TUSHAR RAO GEDELA
ORDER
% 16.01.2025
1. The petitioner has filed the present petition, inter alia, impugning a
notice dated 30.08.2024 (hereafter the impugned notice) issued under
Section 148 of the Income Tax Act, 1961 (hereafter the Act) for the
assessment year (AY) 2015-16.
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
Tax Officer Ward-70(1) & Ors: Neutral Citation: 2024:DHC:5411-DB.
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 23/01/2025 at 21:24:47
4. The 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 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) 2015-16 expired on 31.03.2022. 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.
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 23/01/2025 at 21:24:47
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
JANUARY 16, 2025
Aj
Click here to check corrigendum, if any
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 23/01/2025 at 21:24:49