JAINCO LTD V. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 31 DELHI & ORS.

W.P.(C)/15379/2024

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Jainco Ltd. filed a writ petition against the Assistant Commissioner of Income Tax and others, challenging the notices issued under Sections 148A(b) and 148 of the Income Tax Act, along with the CBDT's Instruction No. 1/2023. The petitioner sought a stay on the operation of the impugned order and notices until the disposal of the writ petition and an ad-interim ex-parte relief. The court, referencing the decision in ARN Infrastructures India Ltd., set aside the notices but acknowledged the need for a detailed examination of the CBDT's instruction regarding the issuance of notices for cases previously disposed of by appellate authorities.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 805222 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 04-11-2024
• Assessment Year: misc
• Other Referred Cases: Pr. CIT (Central-3) v. Abhisar Buildwell Pvt. Ltd.: [2023] 149 taxmann.com 399 (SC), ARN Infrastructures India Ltd. v. Assistant Commissioner of Income Tax Cental Circle-28 Delhi & Ors.: Neutral Citation No.:2024:DHC:7423-DB
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SHLOK CHANDRA; NAINCY JAIN; MADHURI SHUKLA; SUSHANT PANDEY; ASHISH GOYAL; SANDEEP TYAGI
• Assessee Lawyers: VED JAIN; NISCHAY KANTOOR; SONIYA DODEJA; DIVYANSH DUBEY
• Keywords: CBDT instruction; Income Tax; Notice; Stay; Section 147/148
• Section: 148; 148A(d)

Judgement Text

"$~57 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 15379/2024, CM APPL. 64461/2024 & CM APPL. 64462/2024 JAINCO LTD .....Petitioner Through: Mr. Ved Jain, Mr. Nischay Kantoor, Ms. Soniya Dodeja and Mr. Divyansh Dubey, Advocates versus ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 31 DELHI & ORS. .....Respondents Through: Mr. Shlok Chandra, SSC with Ms. Naincy Jain and Ms. Madhuri Shukla, Jr. SCs with Mr. Sushant Pandey, Advocate for Income Tax Deparment. Mr. Ashish Goyal, SPC with Mr. Sandeep Tyagi, Advocate for R-4. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MS. JUSTICE SWARANA KANTA SHARMA O R D E R % 04.11.2024 1. Issue notice. The learned counsel appearing on behalf of respondents accepts notice. 2. The petitioner has filed the present petition, inter alia, praying as under: “...a. Stay the operation of the impugned order dated 31.08.2024 passed by Respondent No. 1 under section 148A(d) of the Act and notice dated 31.08.2024 issued by Respondent 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 11/11/2024 at 11:59:29 No. 1 under section 148 of the Act till the disposal of this writ petition; and b. Restraint the Respondents from continuing with the proceedings, in any manner, pursuant to impugned order and notice dated 31.08.2024, till the disposal of the present writ petition. c. grant ad-interim ex-parte relief in terms of prayer (a) and (b) above; and d. pass such further or other order/direction as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case...” 3. In addition to the aforementioned prayers, the petitioner also impugns Instruction No. 1/2023 dated 23.08.2023 issued by the Central Board of Direct Taxes (CBDT) to the extent that it provides for issuance of notices under Section 147/148 of the Act in respect of cases disposed of by the appellate authorities by relying on the judgment of the Supreme Court in Pr. CIT (Central-3) v. Abhisar Buildwell Pvt. Ltd.: [2023] 149 taxmann.com 399 (SC). 4. The learned counsel appearing for the Revenue fairly states that insofar as the challenge to the notices issued under Section 148A(b) and Section 148 of the Act are concerned, the said issue is covered by the decision of this Court in ARN Infrastructures India Ltd. v. Assistant Commissioner of Income Tax Cental Circle-28 Delhi & Ors.: Neutral Citation No.:2024:DHC:7423-DB. He, however, submits that the challenge to the CBDT’s instruction (Instruction No. 1/2023) requires examination. 5. In view of the above, the learned counsel appearing for the petitioner submits that he will confine the present petition to prayer (a) as set out above. 6. In view of the same, the present petition is allowed and the impugned notices are set aside. 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 11/11/2024 at 11:59:29 7. Accordingly, the present petition is disposed of. VIBHU BAKHRU, J SWARANA KANTA SHARMA, J NOVEMBER 4, 2024 zp 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 11/11/2024 at 11:59:29 "