Delhi High Court - Orders
Ferticity Ivf Clinics Private Limited vs Assistant Commissioner Of Income Tax ... on 20 March, 2025
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~119
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 3467/2025 & CM No.16256/2025
FERTICITY IVF CLINICS PRIVATE LIMITED .....Petitioner
Through: Mr. Paritosh Jain, Mr. Divyansh Jain &
Mr. Abhishek Jain, Advocates.
Versus
ASSISTANT COMMISSIONER OF INCOME
TAX CENTRAL CIRCLE 28, DELHI .....Respondent
Through: Mr. Gaurav Gupta, SSC with Mr.
Shivendra Singh, JSC & Mr. Yojit Pareek,
JSC for Respondent/Income Tax Deptt.).
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
HON'BLE MR. JUSTICE TEJAS KARIA
ORDER
% 20.03.2025
1. The petitioner has filed the present petition, inter alia, impugning a notice dated 02.04.2024 issued under Section 148 of the Income Tax Act, 1961 [the Act]. It is the petitioner's case that the alleged income that has escaped assessment is less than ₹50,00,000/- and therefore, the said notice is beyond the period of limitation. The impugned notice indicates that the Revenue seeks recourse to Sub-section 1A to Section 149 of the Act which permits reopening of assessments where the asset or expenditure in relation to an event or occasion of a value which is in excess of ₹50,00,000/- has escaped assessment and the expenditure in relation thereto has been incurred over several previous years. This is evident from paragraph 7.1 of the impugned notice which is set out below:
"7.1. Further, it is pertinent to mention here that as per Explanation of Section 149 of the Act, a notice under section 148 shall be issued for every such assessment year for assessment, reassessment or recomputation, as the case may be where the income chargeable to tax represented in the form of an asset or expenditure in relation to an event 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 11/04/2025 at 22:32:53 or occasion of the value has escaped the assessment and the investment in such asset or expenditure in relation to such event or occasion has been made or incurred, in more than one previous years relevant to the assessment years. The relevant portion of the Act is reproduced as under:
"Explanation [(1A) Notwithstanding anything contained in sub-section (1), where the income chargeable to tax represented in the form of an asset or expenditure in relation to an event or occasion of the value referred to in clause (b) of sub-section (1), has escaped the assessment and the investment in such asset or expenditure in relation to such event or occasion has been made or incurred, in more than one previous years relevant to the assessment years within the period referred to in clause
(b) of sub-section (1), a notice under section 148 shall be issued for every such assessment year for assessment, reassessment or recomputation, as the case may be.]"
2. However, there is no indication in the notice as to the event or occasion of a value which exceeds ₹50,00,000/- [as specified in clause (b) of sub-section 1 of Section 149 of the Act). Prima facie, paragraph 8 of the impugned notice indicates otherwise. The same is set out below:
"8. In view of the above facts and circumstances of the case, the assessee has made cash expenses, which has reduced the assets and is also an expense in the books, amounting to Rs.12,32,500/- for A.Y. 2019-20. The corresponding amounts for A.Y. 2017-18 is Rs.27,61,578/-, for AY 2018- 19 is Rs.1,13,97,881/-. Also, the assessee has made unexplained expenses, which has reduced the assets and is also an expense in the books, amounting to Rs.18,18,000/- for A.Y. 2019-20. The corresponding amounts for A.Y. 2020-21 is Rs.19,54,000/- and for A.Y. 2021-22 is Rs.46,04,000/-. Hence, addition proposed is with regard to same issue in different years where the income chargeable to tax represented in the form of an asset or expenditure in relation to an event or occasion of the value has escaped the assessment and the investment in such asset or expenditure in relation to such event or occasion has been made or incurred, in more than one previous years relevant to the assessment years."
3. Prima facie, the contentions advanced by the learned counsel appearing for the petitioner are merited.
4. Issue notice.
5. The learned counsel appearing for the respondent accepts notice.
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 11/04/2025 at 22:32:53
6. The further proceedings in relation to the assessment year 2019-20 are stayed till the next date of hearing.
7. Let a reply be filed within a period of three weeks from date. Rejoinder, if any thereto, be filed before the next date of hearing.
8. List on 14.07.2025.
VIBHU BAKHRU, J
TEJAS KARIA, J
MARCH 20, 2025
'gsr' Click here to check corrigendum, if any
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 11/04/2025 at 22:32:53