Delhi High Court – Orders
Manju Jain vs Ito Ward 34 (1) New Delhi & Anr on 20 May, 2025
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~92
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 1191/2023
MANJU JAIN .....Petitioner
Through: Mr Ruchesh Sinha and Ms Monalisa
Maity, Advocates.
Versus
ITO WARD 34 (1) NEW DELHI & ANR. .....Respondents
Through: Mr Sanjay Kumar, SSC with Ms
Monica Benjamin, Advocate.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
HON'BLE MR. JUSTICE TEJAS KARIA
ORDER
% 20.05.2025
CM APPL. 30981/2025
1. For the reasons stated in the application, the same is allowed.
2. The hearing fixed before Registrar on 01.09.2025 stands cancelled.
W.P.(C) 1191/2023
3. The petitioner has filed the present petition, inter alia, impugning a
notice dated 22.07.2022 [impugned notice] issued under Section 148 of the
Income Tax Act, 1961 [the Act] and further proceedings relating to the said
notice in respect of assessment year [AY] 2015-16.
4. The petitioner is an individual, and filed its return of income for the
AY 2015-16 on 22.09.2015, declaring income of ₹6,20,213/-.
5. The Assessing Officer [AO] issued a notice dated 28.06.2021 under
Section 148 of the Act seeking to reopen the assessment for AY 2015-16.
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Although the said notice was issued after 31.03.2021, the procedure as
prescribed under Section 148A of the Act was not followed, as the notice
was premised on the provisions relating to reassessment as were in force
prior to 31.03.2021.
6. Thereafter, by a communication dated 25.05.2022, the AO referred to
the decision of the Supreme Court in Union of India & Ors. v. Ashish
Agarwal: (2022) 444 ITR 1 and forwarded certain information, which,
according to the AO, suggested that the petitioner’s income had escaped
assessment. The said communication also mentioned that in terms of the
aforementioned decision in Union of India & Ors. v. Ashish Agarwal
(supra), the notice dated 28.06.2021 issued under Section 148 of the Act
was deemed to be a notice under Section 148A(b) of the Act. The petitioner
responded to the said notice on 07.06.2022.
7. The AO passed an order dated 22.07.2022 under Section 148A(d) of
the Act holding that it was a fit case for issuance of a notice under Section
148 of the Act in respect of AY 2015-16. The said order was forwarded to
the petitioner along with a notice dated 22.07.2022 issued under Section 148
of the Act.
8. The petitioner contends that the proceedings initiated pursuant to the
impugned notice dated 22.07.2022 are required to be set aside in view of the
concession made by the Revenue before the Supreme Court in Union of
India and Ors. v. Rajeev Bansal: 2024 INSC 754.
9. It is relevant to refer to paragraph 19(e) and 19(f) from the decision of
the Supreme Court in Union of India and Ors. v. Rajeev Bansal (supra),
which sets out the concession as made on behalf of the Revenue:
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“The Finance Act 2021 substituted the old regime for re-
assessment with a new regime. The first proviso to Section
149 does not expressly bar the application of TOLA. Section
3 of TOLA applies to the entire Income-tax Act, including
Sections 149 and 151 of the new regime. Once the first
proviso to Section 149(1)(b) is read with TOLA, then all the
notices issued between 1 April 2021 and 30 June 2021
pertaining to assessment years 2013-14, 2014-15, 2015-16,
2016-17, and 2017-18 will be within the period of limitation
as explained in the tabulation below:
Assessment Within 3 Expiry of Within six Expiry of
year Years Limitation read Years Limitation read
with TOLA for (2) with TOLA for (4)
(1) (2) (3) (4) (5)
2013-2014 31-3-2017 TOLA not 31-3-2020 30-6-2021
applicable
2014-2015 31-3-2018 TOLA not 31-3-2021 30-6-2021
applicable
2015-2016 31-3-2019 TOLA not 31-3-2022 TOLA not
applicable applicable
2016-17 31-3-2020 30-6-2021 31-3-2023 TOLA not
applicable
2017-2018 31-3-2021 30-6-2021 31-3-2024 TOLA not
applicable
f. The Revenue concedes that for the assessment year 2015-
16, all notices issued on or after 1 April 2021 will have to be
dropped as they will not fall for completion during the period
prescribed under TOLA;”
10. In view of the above concession, the impugned notice and the
proceedings relating thereto are required to be set aside. We may also note
the decision of the Supreme Court in Deepak Steel and Power Ltd. v.
Central Board of Direct Taxes and Ors.: Civil Appeal No.5177/2025,
decided on 02.04.2025. The said appeal arose from orders passed by the
Hon’ble High Court of Orissa and Cuttack declining to entertain batch of
petitions filed by the Assessees. The attention of the Supreme Court was
drawn to the concession made on behalf of the Revenue in Union of India
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& Ors. v. Rajeev Bansal (supra) and noting the same, the Supreme Court
allowed the appeals. The relevant extract of the said decision is set out
below:
“4. The learned counsel appearing for the revenue with his
usual fairness invited the attention of this Court to a three
judge bench decision of this Court in Union of India and Ors.
v. Rajeev Bansal, reported in 2024 SCC OnLine SC 2693,
more particularly, paragraph 19(f) which reads thus:-
“19. (f) The Revenue concedes that for the
assessment year 2015-2016, all notices issued on or
after April 1, 2021 will have to be dropped as they
will not fall for completion during the period
prescribed under the Taxation and other Laws
(Relaxation and Amendment of Certain Provisions)
Act, 2020.”
5. As the revenue made a concession in the aforesaid decision
that is for the assessment year 2015-2016, all notices issued
on or after 1st April, 2021 will have to be dropped as they
would not fall for completion during the period prescribed
under the taxation and other laws (Relaxation and
Amendment of certain Provisions Act, 2020). Nothing further
is required to be adjudicated in this matter as the notices so far
as the present litigation is concerned is dated 25.6.2021.
6. In view of the aforesaid, in such circumstances referred to
above the original writ petition nos.2446 of 2023, 2543 of
2023 and 2544 of 2023 respectively filed before the High
Court of Orissa at cuttack stands allowed.
11. The impugned notice dated 22.07.2022 issued under Section 148 of
the Act stands quashed and set aside. Concededly, the controversy is
covered in favour of the petitioner by the decision of this court in
Makemytrip India Pvt. Ltd. v. Deputy Commissioner of Income Tax Circle
16 (1) Delhi & Anr.: Neutral Citation No.: 2025:DHC:1892-DB.
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12. The petition is, accordingly, allowed and all proceedings initiated
pursuant thereto are set aside.
VIBHU BAKHRU, J
TEJAS KARIA, J
MAY 20, 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 23/06/2025 at 15:30:54