Facts of the Case

The petitioner, Roopa Goyal, filed a writ petition challenging the initial notice dated 23.06.2021 issued under Section 148 of the Income-tax Act, 1961, subsequent notices dated 31.05.2022, the order dated 22.07.2022 passed under Section 148A(d), and the consequential notice dated 22.07.2022 issued under Section 148 for Assessment Year 2015–16. The petitioner contended that the reassessment proceedings were illegal, without jurisdiction, and barred by limitation under Section 149, and were initiated in violation of Section 153C and CBDT Instruction No. 1/2011.

Issues Involved

Whether reassessment notices and proceedings initiated for Assessment Year 2015–16 after 1 April 2021 were barred by limitation under Section 149, whether the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 applied to extend limitation, and whether the impugned notices and proceedings were liable to be quashed.

Petitioner’s Arguments

The petitioner submitted that the issue stood squarely covered by the judgment of the Supreme Court in Union of India vs. Rajeev Bansal (2024) 469 ITR 46 (SC) as followed by the Delhi High Court in MakeMyTrip India Private Limited vs. DCIT and subsequent judgments. It was argued that the Revenue had conceded before the Supreme Court that TOLA was not applicable for reopening assessments for AY 2015–16, and therefore all notices issued on or after 1 April 2021 were liable to be dropped as time-barred.

Respondent’s Arguments

The Revenue did not dispute the applicability of the decision in Union of India vs. Rajeev Bansal and its consistent application by the Delhi High Court in similar cases, including MakeMyTrip India Private Limited vs. DCIT.

Court Order / Findings

The Delhi High Court noted that the impugned notice under Section 148 dated 22.07.2022 was admittedly issued beyond the period of limitation prescribed under Section 149(1) of the Income-tax Act, 1961. The Court relied upon the concession recorded by the Supreme Court in Union of India vs. Rajeev Bansal, particularly paragraph 19(f), wherein it was conceded that for Assessment Year 2015–16, all notices issued on or after 1 April 2021 would have to be dropped as TOLA was not applicable.

The Court further relied upon the consistent application of the said principle by the Delhi High Court in MakeMyTrip India Private Limited vs. DCIT and Ibibo Group Private Limited vs. ACIT, and observed that the Revenue did not dispute the applicability of these decisions. Accordingly, the Court held that the impugned notice and proceedings could not be sustained in law.

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 barred by limitation, the same position must be uniformly applied. Courts and authorities are bound to give effect to such concession and settled legal position without reopening the issue.

Final Outcome

The writ petition was allowed. The Delhi High Court set aside the impugned notice dated 22.07.2022 issued under Section 148 and all proceedings emanating therefrom for Assessment Year 2015–16. The petition along with all pending applications was disposed of accordingly.

 

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769595324_ROOPAGOYALVsINCOMETAXOFFICERWARD281.pdf 

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