Delhi High Court - Orders
Baby Joy Fertility And Ivf Centre ... vs Assistant Commissioner Of Income-Tax, ... on 20 March, 2025
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~10 & 11
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 2848/2025 and CM APPLs. 13472-73/2025
+ W.P.(C) 2858/2025 and CM APPLs. 13578-79/2025
BABY JOY FERTILITY AND IVF CENTRE PRIVATE LIMITED
(THROUGH DIRECTOR JAGATJEET SINGH) .....Petitioner
Through: Mr. Gaurav Jain, Mr. Shubham
Gupta, Mr. Sherry Goyal, Ms.
Shalini, Advocates.
versus
ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL
CIRCLE 28, DELHI & ANR. .....Respondents
Through: Mr. Shlok Chandra, Sr. Standing
Counsel with Ms. Naincy Jain, JSC;
Ms. Madhavi Shukla, JSC.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
HON'BLE MR. JUSTICE TEJAS KARIA
ORDER
% 20.03.2025
1. The petitioner has filed the present petition, inter alia, impugning a notice dated 31.03.2024 issued under Section 148 of the Income Tax Act, 1961 [the Act] for Assessment Year [AY] 2017-18 in WP(C) 2848/2025 and for AY 2018-19 in WP(C) 2858/2025 [impugned notice]. The said notice has been issued based on the survey that was conducted under Section 133A of the Act on 01.09.2022. During the course of survey, certain documents including the ledger account was found pertaining to Financial Year [FY] 2021-22.
2. According to the Assessing Officer [AO], the said ledger indicated that the petitioner had not truly and fairly disclosed its income. Statement of one Mr Dhruv was also recorded under Section 131(1A) of the Act on 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 11/04/2025 at 22:32:38 03.09.2022 wherein it was put to him that the net profit before taxes for the period April, 2021 to November, 2021 was 43.11%. In response, he had stated that the petitioner company was making profit of 32-35%. Based on the said material, the Revenue seeks to reopen the assessment for AY 2017- 18 and 2018-19.
3. It is the petitioner's case that the impugned notice has been issued beyond the period of three years and therefore, in terms of Section 149(1)(b) of the Act it is necessary that the AO has certain material indicating that the income of an assessee has escaped assessment in the form of an asset or entries in the books of accounts. However, in this case, the AO has not found that the income, which has escaped assessment is represented by any asset or any entries in the books of accounts. It is emphasised that the sheet containing the statement of account on which the AO has premised the impugned notice pertains to the FY 2020-21 and does not contain any entry pertaining to the relevant assessment year.
4. The learned counsel appearing for the Revenue has referred to the definition of 'books or books of accounts' as defined under Section 2(12A) of the Act. She submits that the said definition is in wide terms and therefore, even a sheet of paper containing certain accounts would constitute books of account. However, the learned counsel is unable to address as to how the entries in the said sheet can be construed as entries representing the income that has escaped assessment for prior years. Concededly, the entries in the sheets of paper - which the Revenue contends are books of accounts - pertain to the FY 2021-22.
5. In view of the above, any further proceeding pursuant to the impugned notice is stayed.
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 11/04/2025 at 22:32:38
6. The parties are at liberty to file the written submissions along with all authorities relied upon by them within a period of four weeks from date.
7. A final opportunity is granted to the Revenue to file a counter- affidavit within a period of four weeks from date. Rejoinder thereto, if any, be filed before the next date of hearing.
8. List for final hearing on 27.05.2025.
VIBHU BAKHRU, J TEJAS KARIA, J MARCH 20, 2025/tr Click here to check corrigendum, if any 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 11/04/2025 at 22:32:39