Delhi High Court - Orders
Qualcomm Incorporated vs Deputy Commissioner Of Income Tax ... on 22 September, 2021
Author: Manmohan
Bench: Manmohan, Navin Chawla
$~ 2, 28 to 32, 35 to 40, 42 to 44,46 to 56 and 58 (total 27)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 10396/2021
QUALCOMM INCORPORATED ..... Petitioner
Through Mr.Salil Kapoor, Ms.Ananya Kapoor,
Mr.Sumit Lalchandani, Ms. Soumya
Singh, Mr.Sanat Kapoor, Advs.
versus
DEPUTY COMMISSIONER OF INCOME TAX CIRCLE
INTERNATIONAL TAX 3-1-1 & ORS. ..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC For
Income Tax Department.
$~28
+ W.P.(C) 10533/2021
ROOP CHAND SONI ..... Petitioner
Through Mr.T M Shivakumar, Advocate
versus
INCME TAX OFFICER WARD 14(3), DELHI & ANR.
..... Respondents
Through Mr.Abhishek Maratha, Sr. SC
$~29
+ W.P.(C) 10565/2021
NALINI JEWELLERS ..... Petitioner
Through Mr.Udai Khanna, Advocate
versus
ASSISTANT COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Through Mr.Kamal Kant Jha, SPC for UOI
Mr.Jivesh Kumar Tiwari, SPC for
UOI.
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv. for
Revenue.
$~30
+ W.P.(C) 10587/2021
PARAGON INDUSTRIES LIMITED ..... Petitioner
Through Dr Rakesh Gupta,Mr.Somil Agarwal,
Ms.Tani Malik, Mr.Anshul Mittal,
Advs.
versus
ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE
19(1),DELHI & ORS. ..... Respondents
Through Mr.Ruchir Bhatia, Sr. SC
$~31
+ W.P.(C) 10608/2021
QUALCOMM INCORPORATED ..... Petitioner
Through Mr.Salil Kapoor, Ms.Ananya Kapoor,
Mr.Sumit Lalchandani, Ms. Soumya
Singh, Mr.Sanat Kapoor, Advs.
versus
DEPUTY COMMISSIONER OF INCOME TAX CIRCLE
INTERNATIONAL TAX 3-1-1 & ORS. ..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
$~32
+ W.P.(C) 10609/2021
QUALCOMM INCORPORATED ..... Petitioner
Through Mr.Salil Kapoor, Ms.Ananya Kapoor,
Mr.Sumit Lalchandani, Ms. Soumya
Singh, Mr.Sanat Kapoor, Advs.
versus
DEPUTY COMMISSIONER OF INCOME TAX CIRCLE
INTERNATIONAL TAX 3-1-1 & ORS. ..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
Jr.SC
$~35
+ W.P.(C) 10612/2021
QUALCOMM INCORPORATED ..... Petitioner
Through Mr.Salil Kapoor, Ms.Ananya Kapoor,
Mr.Sumit Lalchandani, Ms. Soumya
Singh, Mr.Sanat Kapoor, Advs.
versus
DEPUTY COMMISSIONER OF INCOME TAX CIRCLE
INTERNATIONAL TAX 3-1-1 & ORS. ..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
$~36
+ W.P.(C) 10613/2021
SACHIN ENTERPRISES LLP ..... Petitioner
Through Mr.Salil Kapoor, Ms.Ananya Kapoor,
Mr.Sumit Lalchandani, Ms. Soumya
Singh, Mr.Sanat Kapoor, Advs.
versus
ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 58-1
& ANR. ..... Respondents
Through Mr.Abhishek Maratha, Sr. SC
$~37
+ W.P.(C) 10642/2021
BT INDIA PRIVATE LIMITED ..... Petitioner
Through Mr.Vishal Kalra and Mr.S.S. Tomar,
Advs.
versus
THE DEPUTY COMMISSIONER OF INCOME TAX & ANR.
..... Respondents
Through Mr.Sanjay Kumar, Sr.SC, Ms.Easha
Kadian, Jr.SC
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
$~38
+ W.P.(C) 10661/2021
BISHAMBHER DAYAL CHANDER MOHAN ..... Petitioner
Through Ms.Kavita Jha, Mr.Kanishk Agarwal,
Advs.
versus
INCOME TAX OFFICER WARD 58(3) DELHI & ANR.
..... Respondents
Through Mr.Abhishek Maratha, Sr. SC
$~39
+ W.P.(C) 10662/2021
RAJNI ARORA ..... Petitioner
Through Mr.Sunil Kumar Mukhi, Mr.Rajiv
Sharma, Mr.Somil Aggarwal and
Mr.T. S. Nerwal, Advs
versus
INCOME TAX OFFICER WARD54(1),DELHI & ANR.
..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
$~40
+ W.P.(C) 10663/2021
EVA DEVELOPERS PVT LTD ..... Petitioner
Through Mr.Satyen Sethi, Mr. Arta Trana
Panda, Advs.
versus
INCOME TAX OFFICER & ORS. ..... Respondents
Through Mr.Kunal Sharma, Sr. SC with
Ms.Zehra Khan, Jr. SC and
Mr.Shubhendu Bhattacharyya, Adv
$~42
+ W.P.(C) 10683/2021
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
RAJNI ARORA ..... Petitioner
Through Mr.Sunil Kumar Mukhi, Mr.Rajiv
Sharma, Mr.Somil Aggarwal and
Mr.T. S. Nerwal, Advs
versus
INCOME TAX OFFICER WARD 54(1),DELHI & ANR.
..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
$~43
+ W.P.(C) 10684/2021
RAJENDRA GUPTA ..... Petitioner
Through Mr.Kanishk Aggarwal, Adv.
versus
INCOME TAX OFFICER WARD 34(1) DELHI & ANR.
..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
$~44
+ W.P.(C) 10685/2021
SHYAMPREM ESTATE PRIVATE LIMITED ..... Petitioner
Through Mr.Nitin Gulati, Adv.
versus
ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-
22(2),DELHI & ANR. ..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
$~46
+ W.P.(C) 10687/2021
BT INDIA PRIVATE LIMITED ..... Petitioner
Through Mr.Vishal Kalra and Mr.S.S. Tomar,
Advs.
versus
THE DEPUTY COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Through Mr.Sanjay Kumar, Sr.SC, Ms.Easha
Kadian, Jr.SC
$~47
+ W.P.(C) 10688/2021
BT INDIA PRIVATE LIMITED ..... Petitioner
Through Mr.Vishal Kalra and Mr.S.S. Tomar,
Advs.
versus
THE DEPUTY COMMISSIONER OF INCOME TAX & ANR.
..... Respondents
Through Mr.Sanjay Kumar, Sr.SC, Ms.Easha
Kadian, Jr.SC
$~48
+ W.P.(C) 10692/2021
BT INDIA PRIVATE LIMITED ..... Petitioner
Through Mr.Vishal Kalra and Mr.S.S. Tomar,
Advs.
versus
THE DEPUTY COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Through Mr.Sanjay Kumar, Sr.SC, Ms.Easha
Kadian, Jr.SC
$~49
+ W.P.(C) 10693/2021
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
NALINI JEWELLERS ..... Petitioner
Through Mr. Udai Khanna, Advocate
versus
ASSISTANT COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv. for
Revenue.
Mr.Kamal Kant Jha, SPC for UOI.
Mr.Jivesh Kumar Tiwari, SPC also
for UOI.
$~50
+ W.P.(C) 10694/2021
NEERU JAIN ..... Petitioner
Through Mr.Kanishk Aggarwal, Adv.
versus
INCOME TAX OFFICER WARD 29(1) DELHI AND ANR & ANR.
..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv.
$~51
+ W.P.(C) 10695/2021
RAJNI ARORA ..... Petitioner
Through Mr.Sunil Kumar Mukhi, Mr.Rajiv
Sharma, Mr.Somil Aggarwal and
Mr.T. S. Nerwal, Advs
versus
INCOME TAX OFFICER WARD54(1),DELHI & ANR.
..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
Jr.SC
$~52
+ W.P.(C) 10696/2021
NALINI JEWELLERS ..... Petitioner
Through Mr. Udai Khanna, Advocate
versus
ASSISTANT COMMISSIONER OF INCOME TAX & ORS.
..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv. for
Revenue.
Mr.Kamal Kant Jha, SPC for UOI
Mr.Jivesh Kumar Tiwari, SPC for
UOI.
$~53
+ W.P.(C) 10697/2021
M/S B C ENTERPRISES ..... Petitioner
Through Mr.Kanishk Aggarwal, Adv.
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.
$~54
+ W.P.(C) 10700/2021
SUNNY MIRCHANDANI ..... Petitioner
Through Mr.Ved Jain, Ms.Richa Mishra, Advs.
versus
ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 49-1
& ORS. ..... Respondents
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anant Ram Mishra, Adv.
$~55
+ W.P.(C) 10702/2021
RAJNI ARORA ..... Petitioner
Through Mr.Sunil Kumar Mukhi, Mr.Rajiv
Sharma, Mr.Somil Aggarwal and
Mr.T. S. Nerwal, Advs
versus
INCOME TAX OFFICER WARD54(1),DELHI & ANR.
..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
$~56
+ W.P.(C) 10704/2021
M K JAIN HUF ..... Petitioner
Through Mr.Kanishk Aggarwal, Adv.
versus
INCOME TAX OFFICER WARD 44(1) DELHI & ANR.
..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
$~58
+ W.P.(C) 10706/2021
CUSHMAN & WAKEFIELD INDIA PRIVATE LIMITED
..... Petitioner
Through Mr.Divyanshu Agrawal, Ms.Ritika
Chawla, Mr.Vaibhav Niti, Advocates
versus
DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4(2),
Signature Not Verified
Digitally Signed
By:KRISHNA BHOJ
Signing Date:23.09.2021
22:20:16
DELHI & ANR. ..... Respondents
Through Mr.Kunal Sharma, Sr. SC with
Ms.Zehra Khan, Jr. SC and
Mr.Shubhendu Bhattacharyya, Adv
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
ORDER
% 22.09.2021 These hearing have been conducted through video conferencing. CM No. 31992/2021 (Exemption) in WP(C) 10396/2021 CM No. 32573/2021 (Exemption) in WP(C) 10565/2021 CM No. 32667/2021 (Exemption) in WP(C) 10587/2021 CM No. 32717/2021 (Exemption) in WP(C) 10608/2021 CM No. 32719/2021 (Exemption) in WP(C) 10609/2021 CM No. 32725/2021 (Exemption) in WP(C) 10612/2021 CM No. 32730/2021 (Exemption) in WP(C) 10613/2021 CM No. 32888/2021 (Exemption) in WP(C) 10661/2021 CM No. 32890/2021 (Exemption) in WP(C) 10662/2021 CM No. 32895/2021 (Exemption) in WP(C) 10663/2021 CM No. 32950/2021 (Exemption) in WP(C) 10683/2021 CM No. 32952/2021 (Exemption) in WP(C) 10684/2021 CM No. 32954/2021 (Exemption) in WP(C) 10685/2021 CM No. 33028/2021 (Exemption) in WP(C) 10693/2021 CM No. 33030/2021 (Exemption) in WP(C) 10694/2021 CM No. 33032/2021 (Exemption) in WP(C) 10695/2021 CM No. 33034/2021 (Exemption) in WP(C) 10696/2021 CM No. 33036/2021 (Exemption) in WP(C) 10697/2021 CM No. 33041/2021 (Exemption) in WP(C) 10700/2021 CM No. 33045/2021 (Exemption) in WP(C) 10702/2021 CM No. 33050/2021 (Exemption) in WP(C) 10704/2021 CM No. 33056/2021 (Exemption) in WP(C) 10706/2021 Allowed, subject to all just exceptions.
Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:23.09.2021 22:20:16Accordingly, applications stand disposed of.
WP(C) 10396/2021 & CM No. 31991/2021 WP(C) 10533/2021 & CM No. 32473/2021 WP(C) 10565/2021 & CM No. 32572/2021 WP(C) 10587/2021 & CM No. 32666/2021 WP(C) 10608/2021 & CM No. 32716/2021 WP(C) 10609/2021 & CM No. 32718/2021 WP(C) 10612/2021 & CM No. 32724/2021 WP(C) 10613/2021 & CM No. 32729/2021 WP(C) 10642/2021 WP(C) 10661/2021 & CM No. 32887/2021 WP(C) 10662/2021 & CM No. 32889/2021 WP(C) 10663/2021 & CM No. 32894/2021 WP(C) 10683/2021 & CM No. 32949/2021 WP(C) 10684/2021 & CM No. 32951/2021 WP(C) 10685/2021 & CM No. 32953/2021 WP(C) 10684/2021 WP(C) 10688/2021 WP(C) 10692/2021 WP(C) 10693/2021 & CM No. 33027/2021 WP(C) 10694/2021 & CM No. 33029/2021 WP(C) 10695/2021 & CM No. 33031/2021 WP(C) 10696/2021 & CM No. 33033/2021 WP(C) 10697/2021 & CM No. 33035/2021 WP(C) 10700/2021 & CM No. 33040/2021 WP(C) 10702/2021 & CM No. 33044/2021 WP(C) 10704/2021 & CM No. 33049/2021 WP(C) 10706/2021 & CM No. 33055/2021
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:-
Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:23.09.2021 22:20:16".......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 (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 Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:23.09.2021 22:20:16 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 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 Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:23.09.2021 22:20:16 of hearing.
List on 28th September, 2021."
2. Consequently, issue notice. Notice is accepted by the counsel for the respondents as mentioned hereinabove
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. It is made clear that no adjournment shall be granted on the next date of hearing.
5. 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 22, 2021/Arya Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:23.09.2021 22:20:16