Delhi High Court - Orders
Modicare Limited vs Deputy Commissioner Of Income Tax ... on 10 May, 2024
Author: Yashwant Varma
Bench: Yashwant Varma, Purushaindra Kumar Kaurav
$~84
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 3007/2023
MODICARE LIMITED ..... Petitioner
Through: Mr. Rohit Jain and Mr.
Saksham Singhal, Advocates
Versus
DEPUTY COMMISSIONER OF INCOME TAX CENTRAL
CIRCLE 14 NEW DELHI ..... Respondent
Through: Mr. Sanjay Kumar and Ms.
Easha, Advocates
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR
KAURAV
ORDER
% 10.05.2024 REVIEW PET.206/2024
1. This review petition has been moved seeking recall of our judgment dated 09 April 2024 in Saksham Commodities Limited vs. Income Tax Officer, Ward 22(1), Delhi & Anr [2024 SCC OnLine Del 2551], dismissing the writ petition which had been preferred by the petitioner.
2. It becomes pertinent to note, at the very outset, that we had while dealing with a batch of numerous writ petitions assailing initiation of proceedings under Section 153C of the Income Tax Act, 1961 ["Act"], broadly and in terms of the charts which were placed by learned counsels bifurcated those matters under two broad heads:-
(i) Batch (A): The manner in which the "relevant assessment year"
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 16/05/2024 at 20:39:52 are to be computed and
(ii) Batch (B): The existence of incriminating material and the same constituting a prerequisite for initiation of action under the aforenoted provision.
3. While Batch (A) was disposed of in terms of our judgment rendered in Principal Commissioner of Income Tax Central - 1 vs. Ojjus Medicare Private Limited [2024 SCC Online Del 2439], Batch (B) was decided in terms of the judgment rendered in Saksham Commodities Limited.
4. Undisputedly, the instant writ petition, in terms of a chart which was placed for our consideration was placed under the category of "no incriminating material" - i.e., Batch (B). It was in light of the aforesaid classification, that we had noticed that insofar as the present writ petitioner is concerned, a specific reference to the material correlating to the Assessment Year ["AY"] in question had been alluded to in the Satisfaction Note.
5. While seeking review, the petitioner now seeks to address a nuanced argument based on a perceived distinction which they require us to draw between "pre search" and "post search" inquiry /analysis. This submission, having never been addressed cannot possibly justify a review of the judgment rendered.
6. However, additionally and in terms of the review petition, it has also been urged that the "relevant assessment year", when computed from the second Satisfaction Note dated 20 October 2022 and in accordance with the principles laid down in Ojjus Medicare Private Limited, would lead one to the irresistible conclusion that AY 2013-14 would fall beyond the maximum period of ten AYs' when computed from the end of the AY in which material is handed over to the 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 16/05/2024 at 20:39:52 jurisdictional Assessing Officer ["AO"]. This was an aspect which was argued only in the batch of writ petitions led by Ojjus Medicare Private Limited.
7. However, and notwithstanding the review petitioner having incorrectly classified the present writ petition, in the larger interest of justice, we would hold that the same is liable to be allowed on the aforesaid score and in light of our judgment in Ojjus Medicare Private Limited.
8. Accordingly, we allow the review petition and recall our judgment of 09 April 2024 in Saksham Commodities Limited dismissing the instant writ petition.
9. The writ petition for reasons aforenoted would be liable to be allowed and the impugned Section 153C notice dated 21 October 2022 pertaining to AY 2013-14 be quashed, bearing in mind the principles laid down by the Court in Ojjus Medicare Private Limited.
10. Ordered accordingly.
YASHWANT VARMA, J.
PURUSHAINDRA KUMAR KAURAV, J.
MAY 10, 2024 neha 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 16/05/2024 at 20:39:52