Delhi High Court - Orders
Chhavi Agarwal vs Income Tax Officer Ward 28(5) And Anr on 7 September, 2021
Author: Manmohan
Bench: Manmohan, Navin Chawla
$~34 to 36, 38 to 40, 42 to 48, 50 to 52, 55 to 58, 60, 61, 63 to 66
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 9625/2021
CHHAVI AGARWAL ..... Petitioner
Through Mr.Deepanshu Jain, Mr.Shaantanu
Jain, Advs.
versus
INCOME TAX OFFICER WARD 28(5) AND ANR ..... Respondents
Through Mr.Abhishek Maratha, Sr. SC
$~35
+ W.P.(C) 9648/2021
LEAPFROG PRODUCTIONS PRIVATE LIMITED ..... Petitioner
Through Mr.R.K Handoo and Mr.Aditya
Chaudhary, Advs.
versus
SECRETARY, MINISTRY OF FINANCE & ORS. ..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv. for
Revenue.
Mr.Nawal Kishore Jha, SPC for UOI.
$~36
+ W.P.(C) 9649/2021
CHHAVI AGARWAL ..... Petitioner
Through Mr.Deepanshu Jain, Mr.Shaantanu
Jain, Advs.
versus
INCOME TAX OFFICER WARD 28(5) AND ANR ..... Respondents
Through Mr.Abhishek Maratha, Sr. SC
$~38
+ W.P.(C) 9658/2021
SHRI. BRIJ RATTAN BAGRI ..... Petitioner
Through Mr. S. Krishnan, advocate
versus
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:07.09.2021
21:27:49
DEPUTY COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Through Mr.Sanjay Kumar, Sr.SC, Ms.Easha
Kadian, Jr.SC
$~39
+ W.P.(C) 9660/2021
KULVINDER NATH SONS HUF ..... Petitioner
Through Mr.K.Sampath & Mr.S. Krishnan,
Advocates
versus
INCOME TAX OFFICER & ORS. ..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv.
$~40
+ W.P.(C) 9676/2021
SHRI. VINOD AGGARWAL ..... Petitioner
Through Mr. S. Krishnan, advocate
versus
ASSISTANT COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Through Mr.Sanjay Kumar, Sr.SC, Ms.Easha
Kadian, Jr.SC
$~42
+ W.P.(C) 9696/2021
SUNAIR HOTELS LIMITED ..... Petitioner
Through Ms.Shreya Jain & Mr.Gaurav
Tanwar, Advocates
versus
ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 22 2
& ORS. ..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
$~43
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:07.09.2021
21:27:49
+ W.P.(C) 9720/2021
MUNISH SINGLA-HUF ..... Petitioner
Through Mr.Salil Kapoor, Ms.Ananya Kapoor,
Mr.Sanat Kapoor, Mr.Sumit
Lalchandani, Ms Soumya Singh,
Advs
versus
INCOME TAX OFFICER, WARD 58-3 DELHI & ANR.
..... Respondents
Through Ms.Vibhooti Malhotra, Sr. SC with
Mr.Shaliender Singh, Jr. SC, Mr.Udit
Sharma, Adv.
$~44
+ W.P.(C) 9722/2021
METRO SAFETY INSTRUMENTS PVT LTD ..... Petitioner
Through Mr.Aneesh Mittal and Mr.Kartikey
Mudgal, Advocates
versus
ITO 17(1) DELHI & ANR. ..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv.
$~45
+ W.P.(C) 9726/2021
M/S. ZEXUS AIR SERVICES P LTD ..... Petitioner
Through Mr.K.Sampath & Mr.S. Krishnan,
Advocates
versus
INCOME TAX OFFICER & ORS. ..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
$~46
+ W.P.(C) 9727/2021
ALM SONS LIMITED ..... Petitioner
Through Mr.Divyanshu Agrawal, Ms.Ritika
Chawla and Mr.Vaibhav Niti, Advs.
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:07.09.2021
21:27:49
versus
INCOME TAX OFFICER, WARD 2(1), DELHI & ANR.
..... Respondents
Through Mr.Kunal Sharma, Sr. SC with
Ms.Zehra Khan, Jr. SC and
Mr.Shubhendu Bhattacharyya, Adv
$~47
+ W.P.(C) 9728/2021
RAHAT CONTINENTAL PRIVATE LIMITED ..... Petitioner
Through Ms.Kavitha Jha, Mr.Kanishk
Aggarwal, Adv.
versus
ACIT, CIRCLE 19(1) DELHI & ANR. ..... Respondents
Through Mr.Sunil Agarwal, Sr. St. counsel
with Mr.Tushar Gupta, Jr.SC
$~48
+ W.P.(C) 9729/2021
M/S. UNIVERSAL POLYCHEM INDIA P LTD ..... Petitioner
Through Mr.S.Krishnan, Mr.Rakesh Kumar,
Advs.
versus
ASSISTANT COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
$~50
+ W.P.(C) 9731/2021
ABHINAV GUPTA ..... Petitioner
Through Mr.Jitesh Talwani, Mr.Abhimanyu
Goyal, Mr.Sahil Mahajan and
Ms.Anjali, Advs.
versus
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:07.09.2021
21:27:49
INCOME TAX OFFICER WARD 44 (6) DELHI & ORS.
..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC For
Income Tax Department.
Mr.Anil Dabas, Adv.for UOI.
$~51
+ W.P.(C) 9732/2021
MANISHA AGARWAL ..... Petitioner
Through Mr.Ved Jain, Ms.Richa Mishra, Advs.
versus
INCOME TAX OFFICER, WARD 59-1 & ORS. ..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv. for
Revenue.
Mr.Nitin Khanna, Adv. for UOI.
$~52
+ W.P.(C) 9733/2021
MR SIDDHARTHA JAIN ..... Petitioner
Through Mr.Ashwani Kumar Chandrani, Adv.
versus
ACIT 52 1 DELHI AND ORS ..... Respondents
Through Mr.Sanjay Kumar, Sr.SC, Ms.Easha
Kadian, Jr.SC
$~55
+ W.P.(C) 9736/2021
ARTISTIC FINANCE PRIVATE LIMITED ..... Petitioner
Through Mr.Nagesh Behl and Mr.Mayank
Pachauri, Advs.
versus
ITO WARD 3(1) DELHI & ANR. ..... Respondents
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:07.09.2021
21:27:49
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv.
$~56
+ W.P.(C) 9737/2021
M/S. TIDAL SECURITIES P LTD ..... Petitioner
Through Mr.K.Sampath & Mr.S. Krishnan,
Advocates
versus
INCOME TAX OFFICER & ORS. ..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
$~57
+ W.P.(C) 9738/2021
GANGA CONTRACTS AND PROJECTS LTD. ..... Petitioner
Through Mr.Ankur Bansal, Mr.Mukul Rawal
and Mr.Devendra Dang, Advs.
versus
INCOME TAX OFFICER & ANR. ..... Respondents
Through Mr.Abhishek Maratha, Sr. SC
$~58
+ W.P.(C) 9739/2021
CHHAVI AGARWAL ..... Petitioner
Through Mr.Deepanshu Jain, Mr.Shaantanu
Jain, Advs.
versus
INCOME TAX OFFICER WARD 28(5) AND ANR ..... Respondents
Through Mr.Abhishek Maratha, Sr. SC
$~60
+ W.P.(C) 9741/2021
ABHISHEK GUPTA ..... Petitioner
Through Mr.Jitesh Talwani, Mr.Abhimanyu
Goyal, Mr.Sahil Mahajan and
Ms.Anjali, Advs.
versus
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:07.09.2021
21:27:49
INCOME TAX OFFICER WARD 44 (6) DELHI & ORS.
..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC For
Income Tax Department.
Mr. Shankar Kumar Jha, SPC for UOI
$~61
+ W.P.(C) 9742/2021
ARTISTIC FINANCE PRIVATE LIMITED ..... Petitioner
Through Mr.Nagesh Behl and Mr.Mayank
Pachauri, Advs.
versus
ITO WARD 3(1) DELHI & ANR. ..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv.
$~63
+ W.P.(C) 9757/2021
GOPAL BANSAL, KARTA ..... Petitioner
Through Mr. Purav Middha, Adv.
versus
COMMISSIONER OF INCOME TAX & ANR. ..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
$~64
+ W.P.(C) 9758/2021
ATS INFRASTRUCTURE LIMITED ..... Petitioner
Through Mr.Harshit Batra and Mr.Ritesh
Bajaj, Advs.
versus
DEPUTY COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:07.09.2021
21:27:49
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
$~65
+ W.P.(C) 9759/2021
AGLOW FINANCIAL SERVICES PRIVATE LIMITED
..... Petitioner
Through Mr.Ved Jain, Ms.Richa Mishra, Advs.
versus
INCOME TAX OFFICER, WARD 1-1 & ORS. ..... Respondents
Through Mr.Kunal Sharma, Sr. SC with
Ms.Zehra Khan, Jr. SC and
Mr.Shubhendu Bhattacharyya, Adv
$~66
+ W.P.(C) 9760/2021
ROHIT MITTAL ..... Petitioner
Through Mr. Rishabh Ostwal, Adv.
versus
INCOME TAX OFFICER WARD 54 1 DELHI AND ANR & ANR.
..... Respondent
Through Mr.Sanjay Kumar, Sr.SC, Ms.Easha
Kadian, Jr.SC for Income Tax
Department
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
ORDER
% 07.09.2021 These hearing have been conducted through video conferencing. CM No. 29750/2021 (Exemption) in WP(C) 9625/2021 CM No. 29806/2021 (Exemption) in WP(C) 9648/2021 Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:07.09.2021 21:27:49 CM No. 29886/2021 (Exemption) in WP(C) 9649/2021 CM No. 29823/2021 (Exemption) in WP(C) 9658/2021 CM No. 29827/2021 (Exemption) in WP(C) 9660/2021 CM No. 29856/2021 (Exemption) in WP(C) 9676/2021 CM Nos. 29896-97/2021 (Exemption) in WP(C) 9696/2021 CM No. 30001/2021 (Exemption) in WP(C) 9720/2021 CM No. 30011/2021 (Exemption) in WP(C) 9726/2021 CM No. 30013/2021 (Exemption) in WP(C) 9727/2021 CM No. 30015/2021 (Exemption) in WP(C) 9728/2021 CM No. 30017/2021 (Exemption) in WP(C) 9729/2021 CM No. 30022/2021 (Exemption) in WP(C) 9731/2021 CM No. 30024/2021 (Exemption) in WP(C) 9732/2021 CM No. 30026/2021 (Exemption) in WP(C) 9733/2021 CM No. 30032/2021 (Exemption) in WP(C) 9736/2021 CM No. 30034/2021 (Exemption) in WP(C) 9737/2021 CM No. 30036/2021 (Exemption) in WP(C) 9738/2021 CM No. 30038/2021 (Exemption) in WP(C) 9739/2021 CM No. 30041/2021 (Exemption) in WP(C) 9741/2021 CM No. 30043/2021 (Exemption) in WP(C) 9742/2021 CM No. 30083/2021 (Exemption) in WP(C) 9758/2021 CM No. 30134/2021 (Exemption) in WP(C) 9759/2021 Allowed, subject to all just exceptions. Accordingly, applications stand disposed of. WP(C) 9625/2021 & CM No. 29749/2021 WP(C) 9648/2021 & CM No. 29805/2021 WP(C) 9649/2021 & CM No. 29807/2021 WP(C) 9658/2021 & CM No. 29822/2021 WP(C) 9660/2021 & CM No. 29826/2021 WP(C) 9676/2021 & CM No. 29855/2021 WP(C) 9696/2021 & CM No. 29895/2021 WP(C) 9720/2021 & CM No. 30000/2021 WP(C) 9722/2021 & CM No. 30003/2021 WP(C) 9726/2021 & CM No. 30010/2021 WP(C) 9727/2021 & CM No. 30012/2021 WP(C) 9728/2021 & CM No. 30014/2021 WP(C) 9729/2021 & CM No. 30016/2021 WP(C) 9731/2021 & CM No. 30021/2021 Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:07.09.2021 21:27:49 WP(C) 9732/2021 & CM No. 30023/2021 WP(C) 9733/2021 & CM No. 30025/2021 WP(C) 9736/2021 & CM No. 30031/2021 WP(C) 9737/2021 & CM No. 30033/2021 WP(C) 9738/2021 & CM No. 30035/2021 WP(C) 9739/2021 & CM No. 30037/2021 WP(C) 9741/2021 & CM No. 30040/2021 WP(C) 9742/2021 & CM No. 30042/2021 WP(C) 9757/2021 & CM No. 30080/2021 WP(C) 9758/2021 & CM No. 30082/2021 WP(C) 9759/2021 & CM No. 30085/2021 WP(C) 9760/2021 & CM No. 30086/2021
1. On 13th July, 2021, this Court in similar writ petitions being W.P.(C) Nos.6442/2021, 6443/2021 and 6451/2021 had issued notices and granted stay of the impugned notices. The relevant portion of the order passed in W.P.(C) Nos.6442/2021, 6443/021 and 6451/2021 is reproduced hereinbelow:-
".......Learned counsel for the petitioners states that the impugned notices are invalid in the eyes of law and void from inception as they were issued without following the process of issuance of prior notice under section 148A of the Act. He submits that the impugned notices are invalid as they have been issued under the pre-amended provisions of the Act, which were no longer in force on the date of the impugned notices. He emphasises that the amendments are applicable to all the notices issued under Section 148 of the Act post 01st April, 2021.
Learned counsel for the petitioners states that the impugned notifications issued by the Respondent-2 are ultra vires the Act insofar as they contain the 'explanation' clarifying that the pre-amended Sections 148, 149 and 151 of the Act shall govern the issue of notice under Section 148 post 01st April, 2021. According to him, Section 3(1) of the Taxation and Other Laws Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:07.09.2021 21:27:49 (Relaxation and Amendment of Certain Provisions) Act, 2020 authorizes the Central Government to only extend the time limits and nothing more.
He further states that the respondents cannot indirectly extend the operation of the old provisions of the Act beyond 31st March, 2021 in the guise of a clarification under delegated legislation.
He also relies upon interim stay orders passed by the Bombay High Court as well as by the learned predecessor Division Bench of this Court in Mon Mohan Kohli vs. Assistant Commissioner of Income Tax & Anr., W.P. (C) 6176/2021 dated 07th July, 2021.
Issue Notice. Mr. Sanjay Kumar, Advocate, Mr.Ajit Sharma, Advocate and Mr.Kunal Sharma, Advocate accept notice on behalf of the respondents in W.P.(C) Nos.6442/2021, 6443/2021 and 6451/2021 respectively.
Learned counsel for the respondents state that in the present cases, the time limit for issuing the notices under Section 148 of the Act stood expired and, therefore, any action under Section 148 would have been time barred by virtue of the proviso to Section 149(1) of the Act. They submit that by virtue of introduction of Section 3(1) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, the time limit for taking action under Section 148 has been extended till 30th June, 2021. Consequently, according to them, the impugned notifications only provide that as the time limit for issuing notice under Section 148A of the Act has been extended by deemed fiction, the procedure to be followed till 30th June, 2021 would be the old procedure mentioned under the Act. In support of their submission, they also rely upon Section 6 of the General Clauses Act, 1897.
Having heard learned counsel for the parties, this Court is of the prima facie view that the impugned notification is contrary to settled principle of statutory interpretation, namely, that any action taken post the amendment of a procedural section would have to abide by the new Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:07.09.2021 21:27:49 procedures stipulated in the amended Act.
Further, this Court is of the prima facie view that by virtue of a notification, which is a delegated legislation, the date for implementation of statutory provision, as stipulated in the Act, cannot be varied or changed.
This Court is also of the prima facie opinion that Section 6 of the General Clauses Act, 1897 offers no assistance to the respondents as the new Section 148A demonstrates an intent 'to destroy' the old procedure.
Consequently, following the interim orders passed by the learned predecessor Division Bench in Mon Mohan Kohli vs. Assistant Commissioner of Income Tax & Anr., W.P. (C) 6176/2021 dated 07th July, 2021 as well as similar interim order passed by the Bombay High Court, this Court directs that there shall be a stay of the operation of the impugned notices dated 09th June, 2021, 30th June, 2020 and 28th June, 2020 passed in W.P. (C) 6442/2021, 6443/2021 and 6451/2021 respectively.
Let counter-affidavits be filed within three weeks. Rejoinder Affidavits, if any, be filed before the next date of hearing.
List on 28th September, 2021."
2. Consequently, issue notice. Notice is accepted by the counsel for the respondents as mentioned hereinabove. They pray for and are permitted to file their counter-affidavits within two weeks. Rejoinder affidavits, if any, be filed before the next date of hearing.
3. Till further orders, the respondents are restrained from continuing with the reassessment proceedings, in any manner, pursuant to the impugned notices.
4. List along with WP(C) No. 6442/2021 on 28th September, 2021.
5. Ms.Kavita Jha, Advocate and Mr.Sunil Agarwal, Advocate are directed to file their short written submissions on behalf of the petitioner(s) Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:07.09.2021 21:27:49 and respondent(s) respectively not exceeding five pages each within two weeks along with the judgments that they wish to rely upon.
6. It is made clear that no adjournment shall be granted on the next date of hearing.
7. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.
MANMOHAN, J NAVIN CHAWLA, J SEPTEMBER 7, 2021/Arya Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:07.09.2021 21:27:49