Puran Store Through Its Partner Hari Ram … vs Assistant Commissioner Of Income Tax … on 21 April, 2025

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Delhi High Court – Orders

Puran Store Through Its Partner Hari Ram … vs Assistant Commissioner Of Income Tax … on 21 April, 2025

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                                    $~2
                                    *           IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +           W.P.(C) 4256/2025 and CM APPLs. 19697-98/2025
                                                PURAN STORE THROUGH ITS PARTNER HARI RAM
                                                AGARWAL                                 .....Petitioner
                                                             Through: Mr Abhimanyu Jhamba with Ms
                                                                      Thonpinao Thangal and Ms Ayushi
                                                                      Srivastava, Advocates.

                                                                                      versus

                                                ASSISTANT COMMISSIONER OF INCOME TAX         CIRCLE 43
                                                - 1 & ORS.                           .....Respondents
                                                             Through: Ms Hemlata Rawat, JSC with Mr V.
                                                                      K Saksena, Mr Dipak Raj and Mr
                                                                      Subham Kumar, Advocates.

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

% 21.04.2025

1. The petitioner has filed the present petition, inter alia, praying as
under:

“a) A Writ of Certiorari or Writ, Order or Direction in the nature
of Certiorari, or any other appropriate Writ, Order or Direction
under Article 226 / 227 of the Constitution of India quashing
Notice u/s 148 of the Act dated 30.03.2024 for AY 2017-18;

b) A Writ of Certiorari or Writ, Order or Direction in the nature
of Certiorari, or any other appropriate Writ, Order or Direction
under Article 226 / 227 of the Constitution of India quashing
order u/s 148A(d) of the Act dated 30.03.2024 for AY 2017-18;

c) A Writ, order or direction under Article 226/227 of the
Constitution of India staying the operation and effect of the
assessment order dated 07.03.2025 till the disposal of the present

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Writ Petition.”

2. It is the petitioner’s case that in terms of the assessment order dated
07.03.2025, an addition has been made on account of certain unexplained
cash expenses. The petitioner claims that no such addition could have been
made as that was not the ground on which the reassessment proceedings had
been initiated.

3. The Assessing Officer [AO] had issued a notice under Section
148A(b)
of the Income Tax Act, 1961 [the Act] calling upon the petitioner
to respond to the information, which according to the AO was suggestive of
the petitioner’s income for Assessment Year [AY] 2017-18 escaping
assessment. The AO had information to the effect that large cash deposits
had been made during the period 09.11.2016 to 30.12.2016 [demonetization
period]. Thereafter, the AO passed an order under Section 148A(d) of the
Act holding that it was a fit case for issuance of notice under Section 148 of
the Act. The AO had issued a notice dated 30.03.2024 under Section 148 of
the Act, which was accompanied by the order passed under Section 148A(d)
of the Act.

4. It is the petitioner’s case that although the reassessment proceedings
had been initiated on the basis of cash deposited during the demonetization
period, the assessment order has been passed on completely different basis,
that is, on account of unexplained expenses. It is also stated that no addition
has been made on account of cash deposits during demonetization period.
According to the petitioner, no addition can be made in reassessment
proceedings under Section 147 of the Act if no addition has been made on
the grounds on which the assessment was reopened. The petitioner also

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relies on the decision of this court in Ranbaxy Laboratories Limited v. CIT:

(2011) 336 ITR 136. The learned counsel appearing for the Revenue
submits that in view of the statutory amendments to the regime for
reopening of an assessment, the aforesaid decision rendered in the context of
Section 147 – 151 of the Act as in force prior to 31.03.2021, may no longer
hold good.

5. Concededly, the petitioner has a statutory remedy of an appeal. In
view of the above, we do not consider it apposite to entertain the present
petition. It would be open for the petitioner to assail the impugned notices
and the assessment order in an appeal including on the grounds as stated in
the present petition.

6. We clarify that we have not expressed any opinion on the merits of
the rival contentions. All contentions of the parties are reserved.

7. In the event, the petitioner files an appeal within a period of two
weeks from date, the same would be considered by the appellate authority
uninfluenced by the question of delay.

8. The appeal is disposed of in the aforesaid terms. Pending applications
are also disposed of.

VIBHU BAKHRU, J

TEJAS KARIA, J
APRIL 21, 2025/tr
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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 21:33:22



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