Delhi High Court - OrdersDunlewy Aviation Leasing 1 Limited vs Assistant Commissioner Of Income Tax ... on 22 March, 2022Author:ManmohanBench:Manmohan,Dinesh Kumar Sharma$~22, 24, 27, 28, 30, 31, 34-35, 37-40, 42-46, 48, 49, 51-54\n                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI\n                          22\n                          +     W.P.(C) 4549/2022 & CM APPL.13655/2022, CM APPL.13656/2022\n                                DUNLEWY AVIATION LEASING 1 LIMITED ..... Petitioner\n                                                 Through  Ms. Anuradha Dutt with Mr. Sachit\n                                                          Jolly, Mr. Rohit Garg, Ms. Disha\n                                                          Jham, Ms. Mehak Sachdeva and\n                                                          Mr. Sohum Dua, Advocates.\n                                                 versus\n\n                                ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1-2-2\n                                INTERNATIONAL TAXATION & ORS.           ..... Respondents\n                                             Through Mr. Ruchir Bhatia, Advocate.\n\n                          24\n                          +     W.P.(C) 4551/2022 & CM APPL.13659/2022, CM APPL.13660/2022\n                                DARSH PAL SINGH SEBLE                       ..... Petitioner\n                                                 Through  Mr. Shailesh Gupta with Mr. Shyam\n                                                          Sundar, Advocates.\n                                                 versus\n\n                                INCOME TAX OFFICER, WARD -30(1), DELHI AND ANR.\n                                                                         ..... Respondents\n                                             Through  Mr. Abhishek Maratha, Advocate.\n                          27\n                          +     W.P.(C) 4557/2022 & CM APPL.13672/2022, CM APPL.13673/2022\n                                PANDIT REALTOR PRIVATE LIMITED              ..... Petitioner\n                                                 Through  Mr. Rajeev Ahuja, Advocate.\n                                                   versus\n\n                                ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 19(1),\n                                DELHI & ORS.                           ..... Respondents\n                                             Through Mr. Puneet Rai with Ms. Adeeba\n                                                     Mujahid and Mr. Karan Pandey,\n                                                     Advocates.\n\n\n\nSignature Not Verified\nDigitally Signed\nBy:KRISHNA BHOJ\nSigning Date:23.03.2022\n20:45:07\n                           28\n                          +    W.P.(C) 4558/2022 & CM APPL.13674/2022, CM APPL.13675/2022\n                               DEEPAK MATTA                                ..... Petitioner\n                                                Through  Mr. Rajeev Ahuja, Advocate.\n                                                versus\n\n                               INCOME TAX OFFICER WARD 52(1), DELHI & ORS.\n                                                                         ..... Respondents\n                                            Through  Mr. Sunil Agarwal with Mr. Tushar\n                                                     Gupta, Mr. Samarth Chaudhari,\n                                                     Advocates.\n                          30\n                          +    W.P.(C) 4561/2022 & CM APPL.13695/2022, CM APPL.13696/2022\n                               JEET KAUR                                  ..... Petitioner\n                                                Through  Mr. Saurabh D. Karan Singh,\n                                                         Advocate.\n                                                versus\n\n                               INCOME TAX OFFICER WARD 19(3) NEW DELHI\n                                                                          ..... Respondent\n                                            Through  Mr. Puneet Rai with Ms. Adeeba\n                                                     Mujahid and Mr. Karan Pandey,\n                                                     Advocates.\n                          31\n                          +    W.P.(C) 4562/2022 & CM APPL.13697/2022, CM APPL.13698/2022\n                               PEGASUS DEVELOPERS PRIVATE LIMITED ..... Petitioner\n                                                Through  Mr. Naveen Kumar, Advocate.\n\n                                                versus\n\n                               ACIT, CIRCLE 19(1), DELHI & ANR.            ..... Respondents\n                                              Through    Mr. Puneet Rai with Ms. Adeeba\n                                                         Mujahid and Mr. Karan Pandey,\n                                                         Advocates.\n                          34\n                          +    W.P.(C) 4565/2022 & CM APPL.13702/2022, CM APPL.13703/2022\n                               ANUPAMA GARG                                ..... Petitioner\n                                                Through  Mr. Avtaar Singh, Advocate.\n\n\nSignature Not Verified\nDigitally Signed\nBy:KRISHNA BHOJ\nSigning Date:23.03.2022\n20:45:07\n                                                versus\n\n                               GOVERNMENT INDIA & ORS.                ..... Respondents\n                                           Through  Mr. Sanjay Kumar, Advocate.\n                                                    Ms. Priyanka Das, Advocate for UOI.\n\n                          35\n                          +    W.P.(C) 4566/2022 & CM APPL.13704/2022, CM APPL.13705/2022\n\n                               RUPIN KHANDPURA                             ..... Petitioner\n                                           Through        Mr. Saurabh D. Karan Singh,\n                                                          Advocate.\n                                               versus\n\n                               INCOME TAX OFFICER WARD 28(5) NEW DELHI\n                                                                         ..... Respondent\n                                            Through  Mr. Abhishek Maratha, Advocate.\n                          37\n                          +    W.P.(C) 4568/2022 & CM APPL.13708/2022, CM APPL.13709/2022\n                               LT FOODS LIMITED                            ..... Petitioner\n                                                Through  Mr. Aniket D. Agrawal, Advocate.\n\n                                               versus\n\n                               DEPUTY COMMISSIONER OF INCOME TAX & ORS.\n                                                                        ..... Respondents\n                                           Through  Mr. Abhishek Maratha, Advocate for\n                                                    respondent No.1.\n                                                    Mr. Saroj Bidawat, Advocate for UOI\n\n                          38\n                          +    W.P.(C) 4569/2022 & CM APPL.13710/2022, CM APPL.13711/2022\n                               NAVEEN KUMAR JAIN                           ..... Petitioner\n                                                Through  Mr. Mudit Bansal, Advocate.\n\n                                               versus\n\n\n\n\nSignature Not Verified\nDigitally Signed\nBy:KRISHNA BHOJ\nSigning Date:23.03.2022\n20:45:07\n                                INCOME TAX OFFICER WARD 54 (1) , DELHI ..... Respondent\n                                            Through  Mr. Kunal Sharma, Advocate.\n                          39\n                          +    W.P.(C) 4570/2022 & CM APPL.13712/2022, CM APPL.13713/2022\n                               INDIABULLS VENTURE CAPITAL TRUSTEE COMPANY\n                               LIMITED                                   ..... Petitioner\n                                                Through  Ms. Neha Gund, Advocate.\n                                               versus\n\n                               ASSISTANT COMMISSIONER OF INCOME TAX & ORS.\n                                                                        ..... Respondents\n                                            Through Mr. Ajit Sharma, Advocate\n                                                    Mr. Alok Singh with Mr. Gaurav\n                                                    Bhardwaj, Advocates for UOI.\n                          40\n                          +    W.P.(C) 4571/2022 & CM APPL.13714/2022, CM APPL.13715/2022\n                               TIRUPATI TRADING CORPORATION                 ..... Petitioner\n                                                Through  Mr. Deepanshu Jain with\n                                                         Mr. Shantanu Jain, Advocates.\n                                                versus\n\n                               ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 46(1),\n                               DELHI AND ANR.                        ..... Respondents\n                                            Through Ms. Vibhooti Malhotra, Advocate.\n                          42\n                          +    W.P.(C) 4573/2022 & CM APPL.13718/2022, CM APPL.13719/2022\n                               JAI BHAGWAN GARG                           ..... Petitioner\n                                                Through  Mr. Shafiq Khan with Mr. S. Khan,\n                                                         Advocates.\n                                                versus\n                               INCOME TAX OFFICER WARD 45(1) & ORS. ..... Respondent\n                                            Through  Mr. Puneet Rai with Ms. Adeeba\n                                                     Mujahid and Mr. Karan Pandey,\n                                                     Advocates.\n                                                     Ms. Shubhra Parashar with\n                                                    Mr. Virender Pratap Singh Charak,\n                                                    Advocates for UOI.\n\n\nSignature Not Verified\nDigitally Signed\nBy:KRISHNA BHOJ\nSigning Date:23.03.2022\n20:45:07\n                           43\n\n                          +    W.P.(C) 4574/2022 & CM APPL.13720/2022, CM APPL.13721/2022\n                               FREYSSINET MENARD INDIA PVT LTD             ..... Petitioners\n                                                Through  Mr. Akshat Gupta, Advocate.\n\n                                               versus\n\n                               ASSISTANT COMMISSIONER OF INCOME TAX ..... Respondent\n                                            Through Mr. Sanjay Kumar, Advocate.\n                          44\n                          +    W.P.(C) 4575/2022 & CM APPL.13722/2022, CM APPL.13723/2022\n                               M U BUILCON PVT LTD                         ..... Petitioner\n                                                Through  Mr. Mudit Bansal, Advocate.\n\n                                               versus\n\n                               INCOME TAX OFFICER WARD 16 1 DELHI .... Respondent\n                                            Through  Mr. Abhishek Maratha, Advocate for\n                                                     respondent No.1.\n                          45\n                          +    W.P.(C) 4576/2022 & CM APPL.13724/2022, CM APPL.13725/2022\n                               PANDIT REALTOR PRIVATE LIMITED              ..... Petitioner\n                                                Through  Mr. Rajeev Ahuja, Advocate.\n\n                                               versus\n\n                               ASSISTANT COMMISSIONER OF INCOME TAX AND ORS.\n                                                                        ..... Respondents\n                                            Through Mr. Puneet Rai with Ms. Adeeba\n                                                    Mujahid and Mr. Karan Pandey,\n                                                    Advocates.\n                          46\n                          +    W.P.(C) 4577/2022 & CM APPL.13726/2022, CM APPL.13727/2022\n                               INDIABULLS VENTURE CAPITAL TRUSTEE COMPANY\n                               LIMITED                                   ..... Petitioner\n                                                Through  Ms. Neha Gund, Advocate.\n\n\n\n\nSignature Not Verified\nDigitally Signed\nBy:KRISHNA BHOJ\nSigning Date:23.03.2022\n20:45:07\n                                                versus\n\n                               ASSISTANT COMMISSIONER OF INCOME TAX & ORS.\n                                                                        ..... Respondents\n                                            Through Mr. Ajit Sharma, Advocate\n                                                    Mr. Alok Singh with Mr. Gaurav\n                                                    Bhardwaj, Advocates for UOI.\n                          48\n\n                          +    W.P.(C) 4580/2022 & CM APPL.13740/2022, CM APPL.13741/2022\n                               M/S. UNIPATCH RUBBER LTD                    ..... Petitioner\n                                                Through  Mr. Krishan S., Advocate.\n\n                                               versus\n\n                               ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE -25(1),\n                               DELHI AND ORS.                         ..... Respondents\n                                            Through Mr. Sunil Agarwal with Mr. Tushar\n                                                    Gupta, Mr. Samarth Chaudhari,\n                                                    Advocates.\n                          49\n                          +    W.P.(C) 4582/2022 & CM APPL.13744/2022, CM APPL.13745/2022\n                               NITIN JAIN                                  ..... Petitioner\n                                                Through  Mr. Mudit Bansal, Advocate.\n\n                                               versus\n\n                               INCOME TAX OFFICER WARD 35 (1) DELHI ..... Respondent\n                                            Through  Mr. Sanjay Kumar, Advocate.\n\n                          51\n                          +    W.P.(C) 4586/2022 & CM APPL.13749/2022, CM APPL.13821/2022\n                               MEENAL GROVER                               ..... Petitioner\n                                                Through  Mr. Raj Kushagra, Advocate.\n\n                                               versus\n\n                               ASSISTANT COMMISSIONER OF INCOME TAX & ANR.\n\n\n\nSignature Not Verified\nDigitally Signed\nBy:KRISHNA BHOJ\nSigning Date:23.03.2022\n20:45:07\n                                                                               ..... Respondents\n                                               Through    Mr. Zoheb Hossain with Mr. Vipul\n                                                          Agrawal and Mr. Parth Senwal,\n                                                          Advocates.\n\n                          52\n                          +    W.P.(C) 4587/2022 & CM APPL.13752/2022, CM APPL.13753/2022\n                               SUBHASH KUMAR                              ..... Petitioner\n                                                Through  Mr. Shafiq Khan with Mr. S. Khan,\n                                                         Advocates.\n                                               versus\n\n                               INCOME TAX OFFICER WARD 28 (5) & ORS. ..... Respondents\n                                            Through  Mr. Ajit Sharma, Advocate for\n                                                     respondent No.1.\n                                                     Mr. Ajay Jain, Advocate for\n                                                    respondent No.4.\n                          53\n                          +    W.P.(C) 4588/2022 & CM APPL.13755/2022, CM APPL.13756/2022\n                               ASHWIN GOEL                                 ..... Petitioner\n                                                Through  Mr. Puneet Agrawal with Mr. Yuvraj\n                                                         Singh, Ms. Hemlata Rawat,\n                                                         Mr. Ayush Mann and Mr. Chetan\n                                                         Shukla, Advocates.\n                                                versus\n                               INCOME TAX OFFICER & ANR.              ..... Respondents\n                                            Through  Ms. Vibhooti Malhotra, Advocate.\n\n                          54\n                          +    W.P.(C) 4590/2022 & CM APPL.13758/2022, CM APPL.13759/2022\n                               MRS. POONAM BHARGAVA                       ..... Petitioner\n                                                Through  Mr. Aniruddha Deshmukh, Advocate.\n                                               versus\n\n                               INCOME TAX OFFICER WARD 30(1) DELHI AND ANR.\n                                                                         ..... Respondents\n                                            Through  Mr. Ajit Sharma, Advocate for\n\n\nSignature Not Verified\nDigitally Signed\nBy:KRISHNA BHOJ\nSigning Date:23.03.2022\n20:45:07\n                                                                 respondent No.1.\n                                                                Mr. Hemant Kumar Yadav, Advocate\n                                                                for respondent No.2.\n                                CORAM:\n                                HON'BLE MR. JUSTICE MANMOHAN\n                                HON'BLE MR. JUSTICE DINESH KUMAR SHARMA\n                                                   ORDER%                  22.03.20221.    Learned counsel for the parties admit that as the impugned notices in\n                          the present matters have been issued post 31st March, 2021 without\n                          following the procedure prescribed in the substituted Sections 147 to 151\n                          w.e.f. 01st April, 2021, the present matters are covered by the judgment\n                          dated 15th December, 2021 passed by this Court in the case ofMon Mohan\n                          Kohli vs. Assistant Commissioner of Income Tax & Anr., W.P.(C)\n                          No.6176/2021.2.    The conclusion reached by this Court inMon Mohan Kohli(supra) is\n                          reproduced hereinbelow:-"CONCLUSION97. This Court is of the view that as the Legislature has\n                                introduced the new provisions,Sections 147to151of the\n                                Income Tax Act, 1961 by way of theFinance Act, 2021with\n                                effect from 1st April, 2021 and as the saidSection 147is not\n                                even mentioned in the impugned Explanations, the\n                                reassessment notices relating to any Assessment Year issued\n                                underSection 148after 31st March, 2021 had to comply with\n                                the substituted Sections.98. It is clarified that the power of reassessment that existed\n                                prior to 31st March, 2021 continued to exist till the extended\n                                period i.e. till 30th June, 2021; however, theFinance Act, 2021has merely changed the procedure to be followed prior to\n                                issuance of notice with effect from 1st April, 2021.Signature Not VerifiedDigitally SignedBy:KRISHNA BHOJSigning Date:23.03.202220:45:0799. This Court is of the opinion that Section 3(1) of\n                          Relaxation Act empowers the Government/Executive to extend\n                          only the time limits and it does not delegate the power to\n                          legislate on provisions to be followed for initiation of\n                          reassessment proceedings. In fact, the Relaxation Act does not\n                          give power to Government to extend the erstwhileSections 147to151beyond 31st March, 2021 and/or defer the operation of\n                          substituted provisions enacted by theFinance Act, 2021.\n                          Consequently, the impugned Explanations in the Notifications\n                          dated 31st March, 2021 and 27th April, 2021 are not\n                          conditional legislation and are beyond the power delegated to\n                          the Government as well as ultra vires the parent statute i.e. the\n                          Relaxation Act. Accordingly, this Court is respectfully not in\n                          agreement with the view of the Chhattisgarh High Court in\n                          Palak Khatuja (supra), but with the views of the Allahabad\n                          High Court and Rajasthan High Court in Ashok Kumar\n                          Agarwal (supra) and Bpip Infra Private Limited (supra)\n                          respectively.100. The submission of the Revenue thatSection 6of the\n                          General Clauses Act saves notices issued underSection 148post 31st March, 2021 is untenable in law, as in the present\n                          case, the repeal is followed by a fresh legislation on the same\n                          subject and the new Act manifests an intention to destroy the\n                          old procedure. Consequently, if the Legislature has permitted\n                          reassessment to be made in a particular manner, it can only be\n                          in this manner, or not at all.101. The argument of the respondents that the substitution\n                          made by theFinance Act, 2021is not applicable to past\n                          Assessment Years, as it is substantial in nature is contradicted\n                          by Respondents' own Circular 549 of 1989 and its own\n                          submission that from 1st July, 2021, the substitution made by\n                          theFinance Act, 2021will be applicable.102. Revenue cannot rely on Covid-19 for contending that\n                          the new provisionsSections 147to151of the Income Tax Act,\n                          1961 should not operate during the period 1st April, 2021 to\n                          30th June, 2021 as Parliament was fully aware of Covid-19Signature Not VerifiedDigitally SignedBy:KRISHNA BHOJSigning Date:23.03.202220:45:07Pandemic when it passed theFinance Act, 2021. Also, the\n                                arguments of the respondents qua non-obstante clause in\n                                Section 3(1) of the Relaxation Act, 'legal fiction' and 'stop the\n                                clock provision' are contrary to facts and untenable in law.103. Consequently, this Court is of the view that the\n                                Executive/Respondents/Revenue cannot use the administrative\n                                power to issue Notifications under Section 3(1) of the\n                                Relaxation Act, 2020 to undermine the expression of\n                                Parliamentary supremacy in the form of an Act of Parliament,\n                                namely, theFinance Act, 2021. This Court is also of the\n                                opinion that the Executive/Respondents/Revenue cannot\n                                frustrate the purpose of substituted statutory provisions, likeSections 147to151of Income Tax Act, 1961 in the present\n                                instance, by emptying it of content or impeding or postponing\n                                their effectual operation."3.    Keeping in view the aforesaid, Explanations A(a)(ii)/A(b) to the\n                          Notifications dated 31st March, 2021 and 27th April, 2021 are declared to be\n                          ultra vires the Relaxation Act, 2020 and are therefore bad in law and null\n                          and void.4.    Consequently, the impugned reassessment notices issued underSection 148of the Income Tax Act, 1961 are quashed and the present writ\n                          petitions are allowed. If the law permits the respondents/revenue to take\n                          further steps in the matter, they shall be at liberty to do so. Needless to state\n                          that if and when such steps are taken and if the petitioners have a grievance,\n                          they shall be at liberty to take their remedies in accordance with law.MANMOHAN, J\n\n\n                                                                       DINESH KUMAR SHARMA, J\n                          MARCH 22, 2022\n                          stSignature Not VerifiedDigitally SignedBy:KRISHNA BHOJSigning Date:23.03.202220:45:07