Allowed

Al Amin Investments Limited v. Assistant Commissioner of Income Tax Circle International Tax 1(1)(1) Delhi & Anr.

Delhi HC15 Mar 2024W.P.(C)/2150/2022

Case brief

AI extract

What is this about?

The writ petition challenging the reopening of assessment for AY 2015-16 was allowed. The Court held that investment in shares is a capital account transaction and not income, relying on Angelantoni. The notice under Section 148 and related orders were quashed.

What did the court decide?

Quashed the impugned notice under Section 148 dated 31 March 2021 and order dated 30 January 2022.

Al Amin Investments Limited Vs Assistant Commissioner of Income Tax… — Income Tax | Delhi HC (2024)

¶1

$~43

¶2

IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 2150/2022 & CM APPL. 32472/2023

¶3

AL AMIN INVESTMENTS LIMITED ..... Petitioner Through: Mr.Fereshte D. Sethna, Mr.Mrunal Paresh and Mr.Mohit Tiwari, Advs.

¶4

versus

¶5

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE INTERNATIONAL TAX 1(1)(1) DELHI & ANR.

¶6

..... Respondents Through: Mr.Aseem Chawla, Sr.SC with Ms.Pratishtha Chaudhary and Mr.Naveen Rohila, Advs. Mr.N.K.Aggarwal, Adv for UOI.

¶7

CORAM:

¶8

HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

¶9

O R D E R % 15.03.2024

¶10

This writ petition has been preferred seeking the following

¶11

reliefs:-

¶12

"a) that this Hon'ble Court be pleased to issue a writ of certiorari or writ of mandamus or any other appropriate writ, order or direction in the nature of certiorari/mandamus, under Article 226 of the Constitution of India, calling for all the papers and proceedings of Respondent No. I pertaining to the Impugned Order dated 30 January 2022, Impugned Notice dated 31 March 2021 and Impugned Sanction dated 30 March 2021 after examining the validity, legality and propriety thereof, to quash and set aside the Impugned Order, Impugned Notice and Impugned Sanction;

¶13

b) A Writ, Order or Direction in the nature of Certiorari quashing the Impugned Draft Assessment Order dated 25 May 2023 issued under section l44C(l) read with section 147 of the Act for AY 201516;

¶14

c) Pending the hearing and final disposal of the writ petition, for an order restraining the Respondents, its officers, sub-ordinates, agents from relying upon and/or taking any steps in connection with

¶15

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 20/03/2024 at 14:32:29

¶16

escapement proceedings initiated against the Petitioner in pursuance of the Impugned Notice;

¶17

d) For ad-interim/interim reliefs m terms of prayer clause (b) above; e) For the costs of this Petition; and

¶18

f) For such further and other reliefs, as this Hon'ble Court may deem fit, proper and appropriate, in the nature and circumstances of this case."

¶19

The challenge in essence is to the reopening of assessment by invocation of Section 148 of the Income Tax Act, 1961 [" Act "] with it being alleged that the investment made in shares in Assessment Year [" AY "] 2015-2016 had escaped assessment.

¶20

Learned counsel appearing in support of the writ petition draws our attention to the decision rendered by the Court in M/s Angelantoni Test Technologies SRL vs Assistant Commissioner of Income Tax, Circle Int Tax 1(1)(1) & Ors. [2023 SCC OnLine Del 8488] and contends that it has been categorically found by the Court that the investment in shares would be a capital account transaction and would thus not constitute income. It is in view of the aforesaid, submitted that invocation of Section 148 of the Act would not sustain.

¶21

The legal position which stands enunciated in M/s Angelantoni Test Technologies could not be disputed by learned counsel representing the respondents.

¶22

We consequently allow the instant writ petition and quash the impugned notice referrable to Section 148 dated 31 March 2021 and order dated 30 January 2022.

¶23

YASHWANT VARMA, J.

¶24

PURUSHAINDRA KUMAR KAURAV, J.

¶25

MARCH 15, 2024/MJ

¶26

This is a digitally signed order.

¶27

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 20/03/2024 at 14:32:29

Al Amin Investments Limited v. Assistant Commissioner of Income Tax Circle International Tax 1(1)(1) Delhi & Anr.

Case brief

What is this about?

What did the court decide?

Al Amin Investments Limited v. Assistant Commissioner of Income Tax Circle International Tax 1(1)(1) Delhi & Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Deepak Chaudhary & Anr. Vs Expert Realty Professionals Private Limited & Anr.

M/S Technology Next through Its Proprietor Sh. Ashim Gupta Vs Principal Commissioner of Customs, Acc Import, New Custom House New Delhi & Anr.

Cpm India Sales and Marketing Private Limited Vs Deputy Commissioner of Income Tax Circle 4(2) Delhi

Naraina Industrial Area Cetp Society Vs Delhi Pollution Control Committee & Ors.

Jyoti Rubbers Pvt. Ltd. Vs Municipal Corporation of Delhi

Mrs. Sumita Siddhartha Vs Income Tax Officer Ward 14 3 Delhi & Ors.

Vinod Kumar Malik Vs National Highway Authority of India & Ors.

MD Mustafa Raza Vs Superintendent Range 21 Central Goods and Service Tax & Anr.

Pr. Commissioner of Income TAX-6, New Delhi Vs Mercer Consulting India Pvt. Ltd. (Formerly Known as M/S Mercer India Pvt. Ltd.)

Intertek India Private Limited Vs Pr Commissioner of Income Tax 04 & Anr.

Pr. Commissioner of Income Tax -7 Vs Lokvir Kapoor

Sanjay Goel Vs Income Tax Officer, Ward 28(1), New Delhi & Anr.

Ireo Grace Realtech Private Limited Vs Acit (Osd), New Delhi & Anr.

Principal Commisioner of Income Tax 7 Vs Unitech Acacia Projects Pvt. Ltd.