B R GOEL AND SONS HUF V. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 29 DELHI

W.P.(C)/2649/2025

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The case involves B R Goel and Sons HUF, the petitioner, who challenged a notice issued by the Assistant Commissioner of Income Tax under Section 148 of the Income Tax Act, 1961. The notice pertained to the reassessment of income for the assessment year 2017-18. The petitioner argued that the case was covered by a previous decision of the Delhi High Court in ARN Infrastructures India Ltd., which supported their position. The respondent, represented by the Income Tax Department, did not contest this interpretation. The court, referencing the ARN Infrastructures decision, agreed with the petitioner and set aside the notice, emphasizing the need for compliance with the statutory conditions outlined in Sections 147 and 148 of the Act for any reassessment to be valid.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 763452 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 03-03-2025
• Assessment Year: misc
• Other Referred Cases: ARN Infrastructures India Ltd. v. Assistant Commissioner of Income Tax Central Circle-28 Delhi & Ors.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GAURAV GUPTA; SHIVENDRA SINGH; YOJIT PAREEK; PRAKRITI RASTOGI
• Assessee Lawyers: ANANYA KAPOOR; TARUN CHANANA; UTKARSA GUPTA
• Keywords: Income Tax; Notice; Reassessment; Section 148; Section 149
• Section: 147; 148; 149

Judgement Text

"$~76 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 2649/2025, CM APPL. 12590/2025 & CM APPL. 12591/2025 B R GOEL AND SONS HUF .....Petitioner Through: Ms. Ananya Kapoor, Mr. Tarun Chanana and Mr. Utkarsa Kumar Gupta, Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 29 DELHI .....Respondent Through: Mr. Gaurav Gupta, SSC with Mr. Shivendra Singh and Mr. Yojit Pareek, JSCs and Ms. Prakriti Rastogi, Advocate for Income Tax Department. CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 03.03.2025 1. The petitioner has filed the present petition, inter alia, impugning notice dated 31.08.2024 (hereafter the impugned notice) issued under Section 148 of the Income Tax Act, 1961 (hereafter the Act) in respect of assessment year (AY) 2017-18. 2. The learned counsel appearing for the petitioner submits that the issue stands covered by the decision of this Court in ARN Infrastructures India Ltd. v. Assistant Commissioner of Income Tax Central Circle-28 Delhi & Ors.: Neutral Citation No.:2024:DHC:7423-DB. 3. This Court in the case of ARN Infrastructures India Ltd. (supra) held as under: 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 07/03/2025 at 12:32:53 “38. It is pertinent to note that a reference to Sections 147 and 148 of the Act in Abhisar Buildwell firstly appears in paragraph 33 of the report and where the Supreme Court observed that in cases where a search does not result in any incriminating material being found, the only remedy that would be available to the Revenue would be to resort to reassessment. 39. However, the Supreme Court caveated that observation by observing that the initiation of reassessment would be “.....subject to fulfilment of the conditions mentioned in Sections 147/148, as in such a situation, the Revenue cannot be left with no remedy”. This sentiment came to be reiterated with the Supreme Court observing that the power of the Revenue to initiate reassessment must be saved failing which it would be left with no remedy. It was thereafter observed in paragraph 36.4 of the report that insofar as completed or unabated assessments were concerned, they could be reopened by the AO by invocation of Sections 147/148 of the Act, subject to the fulfillment of the conditions “......as envisaged/mentioned under Sections 147/148 of the Act and those powers are saved”. 40. It thus becomes apparent that the liberty which the Supreme Court accorded and the limited right inhering in the Revenue to initiate reassessment was subject to that power being otherwise compliant with the Chapter pertaining to reassessment as contained in the Act. The observations of the Supreme Court cannot possibly be read or construed as a carte blanche enabling the respondents to overcome and override the restrictions that otherwise appear in Section 149 of the Act. The observations of the Supreme Court in Abhisar Buildwell were thus intended to merely convey that the annulment of the search assessments would not deprive or denude the Revenue of its power to reassess and which independently existed. However, the Supreme Court being mindful of the statutory prescriptions, which otherwise imbue the commencement of reassessment, qualified that observation by providing that such an action would have to be in accordance with law. This note of caution appears at more than one place in that judgment and is apparent from the Supreme Court observing that the power to reassess would be subject to the fulfilment of the conditions mentioned in Sections 147 and 148 of the Act.” 4. Plainly, the controversy involved in this petition is covered by the decision of this court in ARN Infrastructures India Ltd. (supra). The contention that the time-period as stipulated under Section 149 of the Act is not applicable, in the given facts, is erroneous and thus rejected. 5. 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 07/03/2025 at 12:32:53 6. The petition is, accordingly, allowed and the impugned notice is set aside. 7. Pending applications also stand disposed of. DEVENDRA KUMAR UPADHYAYA, CJ TUSHAR RAO GEDELA, J MARCH 3, 2025 kct 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 07/03/2025 at 12:32:53 "