IREO GRACE REALTECH PRIVATE LIMITED V. ACIT (OSD), NEW DELHI & ANR.

W.P.(C)/17190/2022

AI Insights

The case involves IREO Grace Realtech Private Limited as the petitioner, contesting an order under Section 148A(d) of the Income Tax Act, 1961, issued by the ACIT (OSD), New Delhi. The primary legal issue was the validity of the order and the subsequent proceedings it initiated. The court referenced the judgment in Twylight Infrastructure (P) Ltd. v. CIT, which addressed similar issues regarding the approval of specified authority in the issuance of notices and orders under the Income Tax Act. The court's decision to quash the impugned order was influenced by the lack of such approval in the present case, as highlighted in the cited precedent.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 756093 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 15-03-2024
• Assessment Year: misc
• Other Referred Cases: Twylight Infrastructure (P) Ltd. v. CIT [2024 SCC OnLine Del 330], Ganesh Dass Khanna
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ABHISHEK MARATHA; NUPUR SHARMA; PARTH SEMWAL
• Assessee Lawyers: RUCHESH SINHA; MONALISA MAITY; SHILPA CHOWDHARY
• Keywords: Income Tax; Quash order; Reassessment proceedings; Writ petition
• Section: 148A(d); 151(ii)

Judgement Text

"$~49 & 50 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 17190/2022 IREO GRACE REALTECH PRIVATE LIMITED ..... Petitioner Through: Mr. Ruchesh Sinha, Ms. Monalisa Maity, Ms. Shilpa Chowdhary, Advs. versus ACIT (OSD), NEW DELHI & ANR. ..... Respondent Through: Mr. Abhishek Maratha, SSC with Ms. Nupur Sharma, Mr. Parth Semwal, Advs. 50 + W.P.(C) 140/2023 IREO GRACE REALTECH PVT. LTD. ..... Petitioner Through: Mr. Ruchesh Sinha, Ms. Monalisa Maity, Ms. Shilpa Chowdhary, Advs. versus ACIT (OSD), NEW DELHI & ANR. ..... Respondent Through: Mr. Abhishek Maratha, SSC with Ms. Nupur Sharma, Mr. Parth Semwal, Advs. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV % 15.03.2024 O R D E R 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 18/03/2024 at 15:42:33 1. On hearing learned counsels for parties, we find that the issues and the challenge raised, stands concluded in light of the judgment rendered by the Court in Twylight Infrastructure (P) Ltd. v. CIT [2024 SCC OnLine Del 330]. W.P.(C) 17190/2022 2. Accordingly, for the reasons assigned in the aforenoted judgment, we allow the instant writ petition and quash the impugned order dated 31 July 2022 passed under Section 148A(d) of the Income Tax Act, 1961 and consequential proceedings initiated thereto, subject to liberty reserved as per paragraph Nos. 28 to 30 of Twylight Infrastructure, and which read as under: “28. Before us, the counsel for the revenue continue to hold this position. The only liberty that they seek is that if, based on the judgment in Ganesh Dass Khanna, the impugned orders and notices are set aside, liberty be given to the revenue to commence reassessment proceedings afresh. 29. Therefore, having regard to the aforesaid, the impugned notices and orders in each of the above-captioned writ petitions are quashed on the ground that there is no approval of the specified authority, as indicated in Section 151(ii) of the Act. The direction is issued with the caveat that the revenue will have liberty to take steps, if deemed necessary, albeit as per law. 30. Needless to add, the rights and contentions of both the sides will remain open, in the event the revenue triggers reassessment proceedings.” 3. The writ petition is disposed of accordingly. Mr. Maratha, learned counsel appearing for the respondent prays for and is granted three weeks’ further time to file a counter affidavit. The petitioner shall have two weeks therefrom to file a rejoinder affidavit. W.P.(C) 140/2023 List again on 11.07.2024. 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 18/03/2024 at 15:42:33 Interim order granted earlier to continue till the next date. YASHWANT VARMA, J. PURUSHAINDRA KUMAR KAURAV, J. MARCH 15, 2024/neha 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 18/03/2024 at 15:42:33 "