Delhi High Court - Orders
Lokesh Gupta L/H Of Late Girdhari Lal vs Ito, Ward 45(1), Delhi & Anr on 23 February, 2022
Author: Manmohan
Bench: Manmohan, Navin Chawla
$~37, 38 TO 40, 42 TO 45, 52, 53, 55, 56, 58 & 59
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 3273/2022 & CM APPL. 9527/2022
LOKESH GUPTA L/H OF LATE GIRDHARI LAL
..... Petitioner
Through: Ms.Rano Jain & Mr.Venketesh
Chaurasia, Advs.
versus
ITO, WARD 45(1), DELHI & ANR. ..... Respondent
Through: Mr.Sunil Agarwal, Sr. Standing
Counsel with Mr.Tushar Gupta, Jr.
Standing Counsel & Mr.Samarth
Chaudhari, Adv.
$~38
+ W.P.(C) 3276/2022 & CM APPL. 9532/2022
KANWALSONS ..... Petitioner
Through: Mr.Kapil Goel & Mr.Sandeep Goel,
Advs.
versus
INCOME TAX OFFICER WARD 50 (1) DELHI AND ORS.
..... Respondents
Through: Mr.Abhishek Maratha, Sr. Standing
Counsel with Mr.Pratyaksh Gupta, Jr.
Standing Counsel.
$~39
+ W.P.(C) 3277/2022 & CM APPL. 9533-34/2022
H.P AND SONS ..... Petitioner
Through: Mr.Salil Kapoor, Ms.Ananya Kapoor
& Mr.Tarun Chanana, Advs.
versus
INCOME TAX OFFICER, WARD 47(1), DELHI & ANR.
..... Respondents
Through: Mr.Ajit Sharma, Sr. Standing
Counsel.
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:28.02.2022
12:10:36
$~40
+ W.P.(C) 3278/2022 & CM APPL. 9535/2022
SKYLARK INFRA ENGINEERING PVT LTD. ..... Petitioner
Through: Mr.Kapil Goel & Mr.Sandeep Goel,
Advs.
versus
INCOME TAX OFFICER WARD 23 (3) DELHI AND ANR
..... Respondents
Through: Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC.
$~42
+ W.P.(C) 3281/2022 & CM APPL. 9541-42/2022
SANJEEV KAPOOR ..... Petitioner
Through: Mr.Ashvini Kumar & Mr.Abhinav
Arya, Advs.
versus
ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 49
(1), DELHI & ANR. ..... Respondents
Through: Ms.Vibhooti Malhotra, Sr. Standing
Counsel with Mr.Shailender Singh, Jr.
Standing counsel & Mr.Udit Sharma,
Adv.
$~43
+ W.P.(C) 3282/2022 & CM APPL. 9547/2022
MERU MINERALS PRIVATE LIMITED ..... Petitioner
Through: Ms.Geeta Rani & Ms.Priyanka, Advs.
versus
DY. COMMISSIONER OF INCOME TAX & ANR.
..... Respondents
Through: Ms.Vibhooti Malhotra, Sr. Standing
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:28.02.2022
12:10:36
Counsel with Mr.Shailender Singh, Jr.
Standing counsel & Mr.Udit Sharma,
Adv.
$~44
+ W.P.(C) 3284/2022
KAPIL GUPTA ..... Petitioner
Through: Mr.Bhuwan Raj, Mr.Abhinav Verma,
Mr.Raghunath Pathak, Mr.Deepak
Agarwal & Mr.Amol Chitravanshi,
Advs.
versus
INCOME TAX OFFICER ..... Respondent
Through: Mr.Ajit Sharma, Sr. Standing
Counsel.
$~45
+ W.P.(C) 3285/2022 & CM APPL. 9550/2022
MERU MINERALS PRIVATE LIMITED ..... Petitioner
Through: Ms.Geeta Rani & Ms.Priyanka, Advs.
versus
DY. COMMISSIONER OF INCOME TAX & ANR.
..... Respondents
Through: Ms.Vibhooti Malhotra, Sr. Standing
Counsel with Mr.Shailender Singh, Jr.
Standing counsel & Mr.Udit Sharma,
Adv.
$~52
+ W.P.(C) 3297/2022 & CM APPL. 9571-72/2022
GREENLINE COMMUNICATION PRIVATE LIMITED
..... Petitioner
Through: Ms.Arti Agarwal & Mr.Alok Kumar,
Advs.
versus
UNION OF INDIA & ORS. ..... Respondents
Through: Mr.Arnav Kumar, CGSC with
Mr.Suprateek Neogi for UOI/R-1.
Ms.Vibhooti Malhotra, Sr. Standing
Counsel with Mr.Shailender Singh, Jr.
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:28.02.2022
12:10:36
Standing counsel & Mr.Udit Sharma,
Adv.
$~53
+ W.P.(C) 3298/2022 & CM APPL. 9573-74/2022
BL GUPTA CONSTRUCTION PRIVATE LIMITED.
..... Petitioner
Through: Mr.Salil Kapoor, Ms.Ananya Kapoor
& Mr.Tarun Chanana, Advs.
versus
DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4-2 &
ANR. ..... Respondents
Through: Mr.Kunal Sharma, Sr. SC with
Ms.Zehra Khan, Jr. SC and
Mr.Shubhendu Bhattacharyya, Adv.
$~55
+ W.P.(C) 3302/2022 & CM APPL. 9583-84/2022
K AND S FINCON PRIVATE LIMITED ..... Petitioner
Through: Mr.Deepanshu Jain & Mr.Shaantanu
Jain, Advs.
versus
INCOME TAX OFFICE WARD 14(1) & ANR. ..... Respondents
Through: Mr.Abhishek Maratha, Sr. Standing
Counsel with Mr.Pratyaksh Gupta, Jr.
Standing Counsel.
$~56
+ W.P.(C) 3303/2022 & CM APPL. 9585-86/2022
SUDERSHAN KUMAR SACHDEVA ..... Petitioner
Through: Mr.T.S. Nerwal, Adv. for Mr.S.K.
Mukhi, Adv.
versus
ITO, CIRCLE-7(1) & ANR. ..... Respondents
Through: Mr.Kunal Sharma, Sr. SC with
Ms.Zehra Khan, Jr. SC and
Mr.Shubhendu Bhattacharyya, Adv.
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:28.02.2022
12:10:36
$~58
+ W.P.(C) 3305/2022 & CM APPL. 9589-90/2022
NEERAJ GUPTA ..... Petitioner
Through: Mr.Surender Raizada, Adv.
versus
ITO WARD 28(1) DELHI AND ORS. ..... Respondents
Through: Ms.Vibhooti Malhotra, Sr. Standing
Counsel with Mr.Shailender Singh, Jr.
Standing counsel & Mr.Udit Sharma,
Adv.
$~59
+ W.P.(C) 3306/2022 & CM APPL. 9591-92/2022
DEEPAK GARG ..... Petitioner
Through: Mr.Gautam Jain & Mr.Piyush Kumar
Kamal, Advs.
versus
INCOME TAX OFFICER WARD 44(6) DELHI & ANR.
..... Respondents
Through: Mr.Ruchir Bhatia, Sr. Standing
Counsel with Ms.Mansie Jain, Adv.
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
ORDER
% 23.02.2022 The petitions have been heard by way of video conferencing.
1. Learned counsel for the parties admit that as the impugned notices in the present matters have been issued post 31st March, 2021 without following the procedure prescribed in the substituted Sections 147 to 151 w.e.f. 01st April, 2021, the present matters are covered by the judgment dated 15th December, 2021 passed by this Court in the case of Mon Mohan Kohli vs. Assistant Commissioner of Income Tax & Anr., W.P.(C) No.6176/2021.
Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:28.02.2022 12:10:362. The conclusion reached by this Court in Mon Mohan Kohli (supra) is reproduced hereinbelow:-
"CONCLUSION
97. This Court is of the view that as the Legislature has introduced the new provisions, Sections 147 to 151 of the Income Tax Act, 1961 by way of the Finance Act, 2021 with effect from 1st April, 2021 and as the said Section 147 is not even mentioned in the impugned Explanations, the reassessment notices relating to any Assessment Year issued under Section 148 after 31st March, 2021 had to comply with the substituted Sections.
98. It is clarified that the power of reassessment that existed prior to 31st March, 2021 continued to exist till the extended period i.e. till 30th June, 2021; however, the Finance Act, 2021 has merely changed the procedure to be followed prior to issuance of notice with effect from 1st April, 2021.
99. This Court is of the opinion that Section 3(1) of Relaxation Act empowers the Government/Executive to extend only the time limits and it does not delegate the power to legislate on provisions to be followed for initiation of reassessment proceedings. In fact, the Relaxation Act does not give power to Government to extend the erstwhile Sections 147 to 151 beyond 31st March, 2021 and/or defer the operation of substituted provisions enacted by the Finance Act, 2021. Consequently, the impugned Explanations in the Notifications dated 31st March, 2021 and 27th April, 2021 are not conditional legislation and are beyond the power delegated to the Government as well as ultra vires the parent statute i.e. the Relaxation Act. Accordingly, this Court is respectfully not in agreement with the view of the Chhattisgarh High Court in Palak Khatuja (supra), but with the views of the Allahabad High Court and Rajasthan High Court in Ashok Kumar Agarwal (supra) and Bpip Infra Private Limited (supra) respectively.
100. The submission of the Revenue that Section 6 of the Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:28.02.2022 12:10:36 General Clauses Act saves notices issued under Section 148 post 31st March, 2021 is untenable in law, as in the present case, the repeal is followed by a fresh legislation on the same subject and the new Act manifests an intention to destroy the old procedure. Consequently, if the Legislature has permitted reassessment to be made in a particular manner, it can only be in this manner, or not at all.
101. The argument of the respondents that the substitution made by the Finance Act, 2021 is not applicable to past Assessment Years, as it is substantial in nature is contradicted by Respondents' own Circular 549 of 1989 and its own submission that from 1st July, 2021, the substitution made by the Finance Act, 2021 will be applicable.
102. Revenue cannot rely on Covid-19 for contending that the new provisions Sections 147 to 151 of the Income Tax Act, 1961 should not operate during the period 1st April, 2021 to 30th June, 2021 as Parliament was fully aware of Covid-19 Pandemic when it passed the Finance Act, 2021. Also, the arguments of the respondents qua non-obstante clause in Section 3(1) of the Relaxation Act, 'legal fiction' and 'stop the clock provision' are contrary to facts and untenable in law.
103. Consequently, this Court is of the view that the Executive/Respondents/Revenue cannot use the administrative power to issue Notifications under Section 3(1) of the Relaxation Act, 2020 to undermine the expression of Parliamentary supremacy in the form of an Act of Parliament, namely, the Finance Act, 2021. This Court is also of the opinion that the Executive/Respondents/Revenue cannot frustrate the purpose of substituted statutory provisions, like Sections 147 to 151 of Income Tax Act, 1961 in the present instance, by emptying it of content or impeding or postponing their effectual operation."
3. Keeping in view the aforesaid, Explanations A(a)(ii)/A(b) to the Notifications dated 31st March, 2021 and 27th April, 2021 are declared to be Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:28.02.2022 12:10:36 ultra vires the Relaxation Act, 2020 and are therefore bad in law and null and void.
4. Consequently, the impugned reassessment notices issued under Section 148 of the Income Tax Act, 1961 are quashed and the present writ petitions are allowed. If the law permits the respondents/revenue to take further steps in the matter, they shall be at liberty to do so. Needless to state that if and when such steps are taken and if the petitioners have a grievance, they shall be at liberty to take their remedies in accordance with law.
MANMOHAN, J NAVIN CHAWLA, J FEBRUARY 23, 2022/rv Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:28.02.2022 12:10:36