Facts of the Case

The petitioner, Rangoli Infocom Private Limited, filed a writ petition challenging the notice dated 27.04.2021 issued under Section 148 of the Income-tax Act, 1961, the notice dated 27.05.2022 issued under Section 148A(b), the order dated 28.07.2022 passed under Section 148A(d), and the consequential notice dated 28.07.2022 issued under Section 148 for Assessment Year 2015–16. The challenge was premised on the ground that all impugned notices and orders were issued after 31.03.2021 and were therefore unsustainable in law.

Issues Involved

Whether reassessment notices and proceedings initiated for Assessment Year 2015–16 on or after 1 April 2021 were liable to be dropped in view of the concession made by the Revenue before the Supreme Court in Union of India vs. Rajeev Bansal, and whether the impugned notices and orders could survive in light of settled law on limitation under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.

Petitioner’s Arguments

The petitioner submitted that the present case was squarely covered by the concession recorded by the Supreme Court in Rajeev Bansal, wherein the Revenue had conceded that for Assessment Year 2015–16, all notices issued on or after 1 April 2021 would have to be dropped as they would not fall for completion during the period prescribed under TOLA. It was argued that since the impugned notices and orders were issued after 1 April 2021, they were liable to be set aside.

Respondent’s Arguments

The Revenue did not dispute the applicability of the concession recorded by the Supreme Court in Rajeev Bansal. It was also brought to the notice of the Court that the Supreme Court, in Deepak Steel and Power Ltd. vs. Central Board of Direct Taxes, had applied the same concession to allow similar appeals.

Court Order / Findings

The Delhi High Court noted the concession recorded by the Supreme Court in Rajeev Bansal, particularly paragraph 19(f), wherein the Revenue had conceded that for Assessment Year 2015–16, all notices issued on or after 1 April 2021 would have to be dropped. The Court also relied on the Supreme Court’s subsequent decision in Deepak Steel and Power Ltd., where the same concession was applied to allow appeals arising from similar reassessment notices.

The Court further observed that the issue was also covered in favour of the petitioner by the decision of the Delhi High Court in MakeMyTrip India Pvt. Ltd. vs. Deputy Commissioner of Income Tax, Circle 16(1), Delhi. In view of the settled position, the Court held that the impugned notices and orders could not be sustained.

Important Clarification

The Court clarified that once the Revenue has conceded before the Supreme Court that reassessment notices for a particular assessment year issued after a specified date are liable to be dropped, the same position must be uniformly applied by all authorities and courts, and no further adjudication on merits is required.

Final Outcome

The writ petition was allowed. The Delhi High Court set aside the notice dated 27.04.2021 issued under Section 148, the notice dated 27.05.2022 issued under Section 148A(b), the order dated 28.07.2022 passed under Section 148A(d), and the consequential notice dated 28.07.2022 issued under Section 148 for Assessment Year 2015–16. The pending application was also disposed of accordingly.

 

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769595280_RANGOLIINFOCOMPRIVATELIMITEDVsINCOMETAXOFFICERANR..pdf 

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