Portronics Digital Private Limited V. Assistant Commissioner of Income-Tax Circle 19(1), Delhi & Ors.

W.P.(C)/606/2026

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The case involves Portronics Digital Private Limited challenging an intimation under Section 143(1) of the Income Tax Act, 1961, which raised a demand of Rs.1.37 crores for the assessment year 2024-25. The petitioner argued that there was a double disallowance of expenses amounting to Rs.4,26,06,170, which they had already added back to their profit and loss account when filing their tax return. The Assessing Officer's notice seeking clarification led to the petitioner providing a response, which was allegedly not considered, resulting in the erroneous demand. The respondent acknowledged the technical error on the petitioner's part but suggested that the issue could be resolved through a rectification application and an amended return.

• Counselvise Citation: [] 140 COUNSELVISE.COM (IT) 830305 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 16-01-2026
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: RUCHIR BHATIA; LOPAMUDRA MAHAPATRA
• Assessee Lawyers: MANUJ SABHARWAL; DEVVRAT TIWARI; DRONA NEGI
• Keywords: Assessment Year 2024-25; Double disallowance; Income Tax; Rectification Application
• Section: 143(1)

Judgement Text

"$~33 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 606/2026, CM APPL.2979/2026 PORTRONICS DIGITAL PRIVATE LIMITED .....Petitioner Through: Mr. Manuj Sabharwal, Mr. Devvrat Tiwari and Mr. Drona Negi, Advs. versus ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE 19(1), DELHI & ORS. .....Respondents Through: Mr. Ruchir Bhatia, SSC and Ms. Lopamudra Mahapatra, Adv. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR O R D E R % 16.01.2026 1. By way of present writ petition, the petitioner has challenged the intimation dated 14.12.2025, issued under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act of 1961’) for assessment year 2024-25, whereby a demand of Rs.1.37 crores has been raised against the petitioner. 2. Learned counsel for the petitioner submitted that he himself had added back the expenses to the extent of Rs.4,26,06,170/- which were reflected in its profit and loss account, when it furnished the income tax return. However, the Assessing Officer, Centralized Processing Center sent a notice dated 07.03.2025 to the petitioner seeking clarification. In response thereto, the petitioner furnished the clarification on 01.04.2025 but without 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 20/01/2026 at 12:54:17 Printed from counselvise.com considering the same, the aforesaid demand has been raised, which on the face of it, is erroneous. Because it has resulted in double disallowance. 3. Mr. Ruchir Bhatia, learned Senior Standing Counsel while submitting that the impugned intimation order is appealable before the Commissioner of Income Tax (Appeals), however, admitted that the error at petitioner’s end was technical and he might be justified in his stand. But since, instead of furnishing the details in applicable column, he had filled in the details in another column, the CPC which processes/assesses return online or through computers could take its cognisanse. 4. He further submitted that in case a rectification application with amended ITR is filed, the requisite process shall be undertaken. 5. Mr. Bhatia in this regard, placed for perusal of the Court, an e-mail which he has received from the Income Tax Department. Relevant paragraph of which reads as under: “The assessee may be informed to file online rectification after making necessary corrections in schedule BP/PART A-OI as indicated above through e-filing portal, so that the issue of double addition in this case will get resolved. PDF of prima facie adjustment notice, intimation under 143(1) issued to assessee, return of income/audit report filed enclosed herewith for ready reference. PW to open intimation u/s. 143(1) is aafcp.” 6. In view of the instructions given to Mr. Bhatia, the present writ petition along with pending application is disposed of by directing the petitioner to file a rectification application and amendment in the Income Tax Return. In case, the needful is done by 31.01.2026, the respondents shall pass consequential order and make refund in accordance with law. 7. The demand raised against the petitioner shall not be enforced until 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 20/01/2026 at 12:54:17 Printed from counselvise.com the petitioner’s rectification application is disposed of. DINESH MEHTA, J VINOD KUMAR, J JANUARY 16, 2026/ss 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 20/01/2026 at 12:54:17 Printed from counselvise.com "