2023 (1) TMI 1471 - HC - Income Tax

Validity of reopening of assessment - approval taken for triggering the reassessment proceedings is not in accordance with Section 151 - HELD THAT - The issue raised in the instant petition also obtains in Twylight Infrastructure Pvt. Ltd. 2024 (1) TMI 759 - DELHI HIGH COURT Accordingly issue notice. Notice on behalf of the respondent/revenue accepted. Counter-affidavit will be filed within the next four weeks. Rejoinder thereto if any be filed before the next date of hearing. List the matter on 23.03.2023. As noticed in Twylight Infrastructure since the issue involved goes to the root of the jurisdiction of the concerned authority proceedings under Section 148 of the Act shall remain stayed till further directions of the Court.

Summary

The Delhi High Court, comprising Hon'ble Mr. Justice Rajiv Shakdher and Hon'ble Ms. Justice Tara Vitasta Ganju, addressed a writ petition challenging several notices and an order under the Income Tax Act, 1961. The petitioner contested the notice dated 22.06.2021 under Section 148 (old regime), the notice dated 22.05.2022 under Section 148A(b), and the order dated 27.07.2022, including a consequential notice of the same date under Section 148. The core argument was that the approval for reassessment proceedings did not comply with Section 151 of the Act. The court noted that similar issues are present in other petitions, specifically W.P.(C) 16524/2022 and W.P.(C) 119/2023. Consequently, a notice was issued, with Ms. Esha Kadian accepting it on behalf of the respondent/revenue. The court ordered a counter-affidavit to be filed within four weeks, with a rejoinder, if any, to be submitted before the next hearing on 23.03.2023. Importantly, the court stayed proceedings under Section 148, citing jurisdictional concerns, until further directions are provided. Parties are instructed to act based on the digitally signed order.