Delhi High Court - Orders
Mam Raj Chunni Lal Exim (Pan Aax Fm 0533B) vs Central Board Of Direct Taxes And Ors on 21 December, 2021
Author: Manmohan
Bench: Manmohan, Navin Chawla
$~91 to 93, 97 to 101, 103 to 105, 107, 108 & 111 to 114
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 14652/2021 & CM No.46367/2021
MAM RAJ CHUNNI LAL EXIM (PAN AAX FM 0533B)
..... Petitioner
Through Mr.Pankaj Jain, Sr. Advocate with
Mr.Gaurav Mittal, Ms.Divya Suri and
Mr.Sachin Bhardwaj, Advocates
versus
CENTRAL BOARD OF DIRECT TAXES AND ORS
..... Respondents
Through Ms.Vibhooti Malhotra, Sr. SC with
Mr.Shaliender Singh, Jr. SC, Mr.Udit
Sharma, Adv.
$~92
+ W.P.(C) 14707/2021 & CM Nos.46317-18/2021
PAL SINGH KAPOOR ..... Petitioner
Through Mr.Kanishk Aggarwal, Adv.
versus
INCOME TAX OFFICER WARD 30(1) DELHI & ANR.
..... Respondents
Through Mr.Abhishek Maratha, Sr. SC,
Mr.Pratyaksh Gupta, Jr. SC
$~93
+ W.P.(C) 14708/2021 & CM No.46319/2021
JAYA PATODIA ..... Petitioner
Through Mr. Piyush Kaushik, Advocate
versus
UNION OF INDIA & ORS. ..... Respondents
Through Mr.Asheesh Jain, CGSC with
Mr.Adarsh Kumar Gupta &
Mr.Keshav Mann, Adv. for UOI.
Mr.Sanjay Kumar, Sr. SC, Ms.Easha
Kadiyan, Adv. for Revenue.
$~97
+ W.P.(C) 14715/2021 & CM Nos.46332-333/2021
HINDUSTHAN CONSULTANCY AND SERVICES LTD (JAI
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:22.12.2021
19:09:13
COMMERICAL PVT. LTD. MERGED WITH
PETITIONER) .... Petitioner
Through Mr.Rohit Bansal, Advocate.
versus
INCOME TAX OFFICER WARD 13(1), DELHI & ANR.
..... Respondents
Through: Ms.Vibhooti Malhotra, Advocate.
$~98
+ W.P.(C) 14716/2021 & CM No.46334/2021
ECOTECH INFRATECH PRIVATE LIMITED ..... Petitioner
Through Mr. KV Balakrishnan, Advocate
versus
PR.COMMISSIONER OF INCOME TAX DELHI 1 & ANR.
..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
$~99
+ W.P.(C) 14723/2021 & CM Nos.46345-46/2021
KNIGHT CONSTRUCTION PRIVATE LIMITED ..... Petitioner
Through Dr.Rakesh Gupta, Mr.Somil Agarwal,
Mr.RK Bhardwaj, Mr.Anshul Mittal,
Advs.
versus
INCOME TAX OFFICER WARD14(3) & ORS. ..... Respondents
Through Mr.Ajit Sharma, Sr.SC with Mr.Anand
Ram Mishra, Adv.
$~100
+ W.P.(C) 14724/2021 & CM Nos.46347-48/2021
GOOD MORNING INDIA MEDIA PVT LTD ..... Petitioner
Through Mr.Bhanu Gupta, Adv.
versus
INCOME TAX OFFICER CIRCLE 10(1), DELHI, & ANR.
..... Respondents
Through Ms.Vibhooti Malhotra, Sr. SC with
Mr.Shaliender Singh, Jr. SC, Mr.Udit
Sharma, Adv.
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:22.12.2021
19:09:13
$~101
+ W.P.(C) 14726/2021 & CM Nos.46350-51/2021
NITIN KHETAN ..... Petitioner
Through Mr.Gaurav Jain, Adv
versus
INCOME TAX OFFICER WARD 58(1) DELHI AND ANR
..... Respondents
Through Ms.Vibhooti Malhotra, Sr. SC with
Mr.Shaliender Singh, Jr. SC, Mr.Udit
Sharma, Adv.
$~103
+ W.P.(C) 14729/2021 & CM Nos.46357-58/2021
SEEMA GUPTA ..... Petitioner
Through Mr.Ruchesh Sinha, Ms.Divya, Advs.
versus
ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 70 1 DELHI
AND ORS ..... Respondents
Through Mr.Ruchir Bhatia, Sr. SC for Revenue
Mr.Tanveer Ahmed Ansari, SPC for
UOI.
$~104
+ W.P.(C) 14730/2021 & CM Nos.46359-60/2021
ANKIT GUPTA ..... Petitioner
Through Mr.Ashok Kr. Babbar, Ms.Sweta Kumar,
Advs.
versus
UNION OF INDIA THROUGH SECRETARY & ANR.
..... Respondents
Through Mr.Prakash Kumar, CGSC for UOI.
$~105
+ W.P.(C) 14740/2021 & CM Nos.46382-83/2021
OMKAM GLOBAL CAPITAL PRIVATE LIMITED ..... Petitioner
Through Mr. Nitin Gulati, Adv
versus
INCOME TAX OFFICER,WARD-19(1), DELHI & ANR.
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:22.12.2021
19:09:13
..... Respondents
Through Mr.Sunil Agarwal, Sr. SC, Mr.Tushar
Gupta, Jr. SC and Mr.Samarth
Chaudhari, Adv.
$~107
+ W.P.(C) 14746/2021 & CM Nos.46393-94/2021
KNIGHT CONSTRUCTIONS PRIVATE LIMITED ..... Petitioner
Through Dr.Rakesh Gupta, Mr.Somil Agarwal,
Mr.RK Bhardwaj, Mr.Anshul Mittal,
Advs.
versus
INCOME TAX OFFICER WARD 14(3) DELHI & ANR.
..... Respondents
Through Mr.Ajit Sharma, Sr.SC with
Mr.Anand Ram Mishra, Adv
$~108
+ W.P.(C) 14747/2021 & CM Nos.46395-96/2021
OMKAM GLOBAL CAPITAL PRIVATE LIMITED ..... Petitioner
Through Mr. Nitin Gulati, Adv
versus
INCOME TAX OFFICER,WARD-19(1), DELHI & ANR.
..... Respondents
Through Mr.Sunil Agarwal, Sr. SC, Mr.Tushar
Gupta, Jr. SC and Mr.Samarth
Chaudhari, Adv.
$~111
+ W.P.(C) 14750/2021 & CM Nos.46426-27/2021
AMOLIK INFRASTRURE PRIVATE LIMITED ..... Petitioner
Through Dr.Rakesh Gupta, Mr.Somil Agarwal,
Mr.RK Bhardwaj, Mr.Anshul Mittal,
Advs.
versus
INCOME TAX OFFICER WARD 2(1) DELHI & ORS.
..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:22.12.2021
19:09:13
$~112
+ W.P.(C) 14751/2021 & CM Nos.46431-32/2021
AMOLIK INFRASTRUCTER PRIVATE LIMITED(FORMERLY
KNOWN AS TARANG ENTERTAINMENT PRIVATE LIMITED
..... Petitioner
Through Dr.Rakesh Gupta, Mr.Somil Agarwal,
Mr.RK Bhardwaj, Mr.Anshul Mittal,
Advs.
versus
INCOME TAX OFFICER WARD 2(1) DELHI & ORS
..... Respondents
Through Mr.Zoheb Hossain, Sr. SC with
Mr.Vipul Agrawal, Mr.Parth Semwal,
Jr.SC
$~113
+ W.P.(C) 14752/2021 & CM Nos.46434-35/2021
EDEN BIOTECHNOLOGY PVT LTD ..... Petitioner
Through Mr.Ruchesh Sinha, Ms.Divya, Advs.
versus
INCOME TAX OFFICER WARD 8(1) DELHI AND ORS
..... Respondents
Through Mr.Sanjay Kumar, Sr. SC, Ms.Easha
Kadiyan, Adv. for Revenue.
Mr.Aman Malik, SPC for UOI.
$~114
+ W.P.(C) 14757/2021 & CM Nos.46448-49/2021
ASHISH GIRDHAR ..... Petitioner
Through Mr.Sumit Lalchandani, Ms.Soumya
Singh, Mr.Gowrang, Adv.
versus
INCOME TAX OFFICER, WARD 22(2),DELHI AND ANR.
..... Respondents
Through Mr.Puneet Rai, Sr. SC with
Ms.Adeeba Mujahid, Jr. SC
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:22.12.2021
19:09:13
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
ORDER
% 21.12.2021
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.
2. 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 Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:22.12.2021 19:09:13 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 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 Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:22.12.2021 19:09:13 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 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 DECEMBER 21, 2021/Arya Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:22.12.2021 19:09:13