Indian Kanoon - Search engine for Indian Law

Delhi High Court - Orders

Fena Pvt. Ltd vs Acit Circle 7 -1 New Delhi & Anr on 5 May, 2022

Author: Manmohan

Bench: Manmohan, Dinesh Kumar Sharma

                              $~A-2
                              *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +     W.P.(C) 6553/2022 & CM APPLs.19909-19910/2022
                                    FENA PVT. LTD.                                             ..... Petitioner
                                                       Through:      Mr.P.Roychaudhuri, Advocate with
                                                                     Mr.Gagan Gupta, Advocate.

                                                       versus

                                    ACIT CIRCLE 7 -1 NEW DELHI & ANR.                      ..... Respondents
                                                       Through:      Mr.Sanjay Kumar, Advocate.
                                    CORAM:
                                    HON'BLE MR. JUSTICE MANMOHAN
                                    HON'BLE MR. JUSTICE DINESH KUMAR SHARMA
                                                        ORDER

% 05.05.2022 Present writ petition has been filed challenging the notice dated 31st March, 2022 issued by Respondent No.1 under Section 148 of the Income Tax Act (in short 'the Act') for the Assessment Year 2018-19.

Learned counsel for the Petitioner states that the case of the petitioner has been re-opened on the basis of borrowed satisfaction by simply relying upon the information flagged by the Risk Management Strategy of the Income Tax Department. He states that no independent inquiry was conducted by Respondent No.1 to ascertain if there was any escapement of income. Learned counsel for the petitioner further states that a bare perusal of the impugned order dated 31st March, 2022 shows that detailed replies of the Petitioner-Company dated 19th March, 2022 and 24th March, 2022 were not taken into consideration by Respondent No.1, and therefore, the Order under Section 148A(d) of the Act and the consequential Notice under Section 148 of the Act should be set aside.

On the last date of hearing, Mr.Sanjay Kumar, learned counsel for the respondent-revenue had sought time to obtain instructions. Today, he prays for further time to obtain instructions. However, this Court is of the view that the respondent-revenue has had adequate time to obtain instructions. Consequently, this Court has no other option but to believe the averments in the writ petition.

Believing the averments in the writ petition to be true, the impugned order and notice under Section 148 of the Act are set aside on the ground that the Assessing Officer has not taken into consideration the replies along with the documents/evidences filed by the petitioner.

Accordingly, the Assessing Officer is directed to pass a fresh reasoned order under Section 148A(d) of the Act after taking into account the submissions/contentions advanced by the petitioner in its replies as well as documents/evidences filed along with the said replies.

With the aforesaid direction, the present writ petition along with pending applications stands disposed of.

This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open.

MANMOHAN, J DINESH KUMAR SHARMA, J MAY 5, 2022/TS Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:06.05.2022 16:46:18