Dismissed

Amit Gupta v. Assistant Commissioner of Income Tax Circle 34(1) & Anr.

Delhi HC9 May 2024W.P.(C)/6653/2024

Case brief

AI extract

What is this about?

Petitioner challenged initiation of reassessment for AY 2017-18 via Section 148 notice based on CBDT Risk Management Strategy information regarding unaccounted cash receipts. Court held Article 226 cannot entertain challenges requiring factual inquiry that must first be undertaken by the AO, and dismissed the petition without prejudice to contentions in reassessment proceedings.

What the court decided

AI extract

Amit Gupta Vs Assistant Commissioner of Income Tax Circle 34(1)… — Income Tax | Delhi HC (2024)

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$~69

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- W.P.(C) 6653/2024

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AMIT GUPTA ..... Petitioner

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Through: Mr. Abhimanyu Jhamba, Ms. Thonpinao Thangal & Mr. Shivam Prashar, Advs.

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Versus

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ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 34(1) & ANR. ..... Respondents

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Through: Mr. Indruj Singh Rai, SSC with Mr. Sanjeev Menon & Mr. Rahul Singh, JSCs.

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CORAM:

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

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O R D E R % 09.05.2024

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CM APPL. 27693/2024 (Ex.)

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Allowed subject to all just exceptions.

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Application stands disposed of.

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WP(C) 6653/2024 & CM 27692/2024 (Stay)

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1 The writ petitioner impugns the initiation of reassessment proceedings for Assessment Year [‘ AY ’] 2017-18 pursuant to the issuance of a notice under Section 148 of the Income Tax Act, 1961 [‘ AY ’] dated 30 March 2024.

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2 As would be evident from a reading of the order passed by the

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This is a digitally signed order.

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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 21/05/2024 at 11:44:54

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Assessing Officer [‘ AO ’] and referable to Section 148A(d) of the Act, the respondents sought to commence the assessment based upon certain information which was collated in terms of the Risk Management Strategy formulated by the Central Board of Direct Taxes [‘ CBDT ’]. The respondents essentially appear to have been persuaded to undertake reassessment in respect of various unaccounted cash receipts reflecting in the accounts of the petitioner and flowing from M/s VKC Nuts Pvt. Ltd. Those unaccounted cash receipts have been computed to be INR 1,13,94,208/-. Although the petitioner was afforded an opportunity to submit an explanation in respect of the aforenoted cash receipts, the respondents were unconvinced and have consequently disposed of the objections in terms of the order impugned before us.

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3 Before us the writ petitioner has sought to question the assumption of jurisdiction under Section 148 and had required us to examine various facts which are presently yet to be examined and evaluated by the respondents. We bear in mind the undisputed position in law of Section 148 reassessments being liable to be interfered with under Article 226 of the Constitution on jurisdictional grounds and those which would impinge upon the very assumption of authority to reassess. A challenge under Article 226 to an action of reassessment cannot possibly be entertained on grounds as raised in the instant writ petition and which would necessarily entail the Court being compelled to examine issues of fact even though such an inquiry must in the first instance be undertaken by the AO.

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4 We, consequently, find no merit in the instant writ petition. It shall consequently stand dismissed.

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This is a digitally signed order.

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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 21/05/2024 at 11:44:54

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5 This order, however, shall be without prejudice to the rights and contentions of the writ petitioner which shall be open to be addressed in the ongoing reassessment proceedings.

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YASHWANT VARMA, J

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PURUSHAINDRA KUMAR KAURAV, J

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MAY 09, 2024/ RW

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This is a digitally signed order.

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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 21/05/2024 at 11:44:54

Amit Gupta v. Assistant Commissioner of Income Tax Circle 34(1) & Anr.

Case brief

What is this about?

What the court decided

Amit Gupta v. Assistant Commissioner of Income Tax Circle 34(1) & Anr.

Case brief

What is this about?

What the court decided

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