IRA MALHOTRA V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-10(1), DELHI & ANR.

W.P.(C)/391/2023

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The case revolves around a petition filed by Ira Malhotra, challenging a notice issued under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2015-16. The initial notice was deemed unsustainable as it did not comply with the statutory regime post-31.03.2021, following the precedent set by Mon Mohan Kohli v. Assistant Commissioner of Income Tax & Anr. The Supreme Court's directive in Union of India & Ors. v. Ashish Agarwal led to a reissuance of the notice under Section 148A(b), to which the Assessee responded. However, the subsequent order under Section 148A(d) was contested as being beyond the stipulated time frame, leading to the current petition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 759129 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 18-03-2025
• Assessment Year: misc
• Other Referred Cases: Mon Mohan Kohli v. Assistant Commissioner of Income Tax & Anr.: Neutral Citation No.: 2021:DHC:4181-DB, Union of India & Ors. v. Ashish Agarwal: 1 SCC 617, Ram Balram Buildhome Pvt. Ltd. v. Income Tax Officer and Anr.: Neutral Citation No.: 2025:DHC:547-DB
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GAURAV GUPTA; SHIVENDRA SINGH; YOJIT PAREEK
• Assessee Lawyers: AMOL SINHA; ANKIT KUMAR
• Keywords: Assessment Year 2015-16; Income Tax; Limitation Period; Notice; Section 148; Section 148A
• Section: 148; 148A(b); 148A(d); 148A

Judgement Text

"$~25 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 391/2023 IRA MALHOTRA .....Petitioner Through: Mr. Amol Sinha, Mr. Ankit Kumar, Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-10(1), DELHI & ANR. .....Respondents Through: Mr. Gaurav Gupta, SSC, Mr. Shivendra Singh, JSC and Mr. Yojit Pareek, JSC for Income Tax Department. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 18.03.2025 1. The petitioner [Assessee] has filed the present petition, inter alia, impugning a notice dated 26.07.2022 [the impugned notice] issued under Section 148 of the Income Tax Act, 1961 [the Act] in respect of the Assessment Year [AY] 2015-16. It is the Assessee’s case that the impugned notice has been issued beyond the prescribed period of limitation. 2. The initial notice under Section 148 of the Act for AY 2015-16 was issued on 25.06.2021. The said notice was unsustainable as it was issued in accordance with the statutory regime as it stood prior to 31.03.2021. This court in the case of Mon Mohan Kohli v. Assistant Commissioner of Income Tax & Anr.: Neutral Citation No.: 2021:DHC:4181-DB had set aside such notices that were issued after 31.03.2021 without following the procedure as prescribed under Section 148A of the Act. However, the Supreme Court in the case of Union of India & Ors. v. Ashish Agarwal: 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 24/03/2025 at 14:39:28 (2023) 1 SCC 617, issued directions for considering the said notices as the notices issued under Section 148A(b) of the Act and further granted time to the Assessing Officer to supply the material on which such notices were premised. 3. In compliance with the directions issued by the Supreme Court in the case of Union of India & Ors. v. Ashish Agarwal (supra), the Assessing Officer (AO) provided information and material to the Assessee and also issued a fresh notice under Section 148A(b) of the Act on 27.05.2022. The Assessee was granted two weeks time to respond to the said notice. The Assessee responded to the notice dated 27.05.2022 by a letter dated 11.06.2022. 4. The AO passed an order under Section 148A(d) of the Act on 26.07.2022. According to the Assessee, the same was beyond the period as stipulated. 5. Concededly, the said controversy is covered in favour of the Assessee by the decision of this court in Ram Balram Buildhome Pvt. Ltd. v. Income Tax Officer and Anr.: Neutral Citation No.: 2025:DHC:547-DB. 6. The present petition is, accordingly, allowed and all proceedings initiated pursuant thereto are set aside. VIBHU BAKHRU, J TEJAS KARIA, J MARCH 18, 2025/tr 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 24/03/2025 at 14:39:28 "