M/S. Kautilya Finance B. V v. Assistant Commissioner Of Income Tax Circle Int.tax 2(1)(2), New Delhi

$~11 IN THE HIGH COURT OF DELHI AT NEW DELHI +W.P.(C) 10361/2022 M/S. KAUTILYA FINANCE B. V...... Petitioner Through:Mr.S.Krishnan, Advocate. versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE INT.TAX 2(1)(2), NEW DELHI..... RespondentThrough:Mr.Zoheb Hossain, senior standingcounsel for the Revenue withMr.Vipul Agrawal and Mr.ParthSemwal, Advocates. % Date of Decision: 08[th]July, 2022 CORAM: HON'BLE MR. JUSTICE MANMOHANHON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J (Oral): C.M.No.29831/2022 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of. W.P.(C) No.10361/2022 & C.M.No.29830/2022 1.Present writ petition has been filed challenging the notice dated 31[st]March, 2022 issued under Section 148A(b) of the Income Tax Act, 1961(hereinafter referred to as the ‘Act’) as well as order dated 25[th]April, 2022passed by the Respondent under Section 148A(d) of the Act and notice dated 25[th]April, 2022 under Section 148 of the Act issued by theRespondent for Assessment Year 2018-19. Petitioner also seeks a directionto the Respondent to state on affidavit as to how many taxpayers bearingthe name "Kautilya Finance BV" are registered on the ITBA portal; howmany forms in Form 15-CA issued by E Homes Infrastructure (P) Ltd. inrespect of the Petitioner during Assessment Year 2018-19 amounting toRs.16,13,44,657/-, did the Respondent access, and whether the other formsas issued for the subject year if any, were not available to him and whetherprior to passing of the impugned order under section 148A(d) of the Act on25[th]April, 2022 any attempt was made by the Respondent to ascertainservice of the notice dated 31[st]March, 2022 under Section 148A(b) of theAct. 2.Learned counsel for the Petitioner states that an order under Section148A(d) of the Act has been passed on 25[th]April, 2022 holding that thePetitioner has not filed any reply in respect of notice issued under Section148 A(b) of the Act dated 31st March, 2022, and therefore, reassessmentproceedings are being initiated. 3.He states that the notice under Section 148A(b) dated 31[st]March,2022requiring compliance by 18[th]April, 2022, had been delivered by the postalauthorities to the Petitioner on 25[th]April, 2022, i.e. on the same date theorder under Section 148A(d) was passed. He submits that in violation ofSection 148A(b) of the Act, no opportunity of hearing was provided in thepresent case. 4.Learned counsel for the Petitioner states that the notice as well as theconsequent order are both completely unfounded on facts as they allege non-filing of return of income by the Petitioner as well as non-payment of taxes in India, whereas documents referred by the Respondent to reach theseconclusions themselves demonstrate the falsity of the said conclusions. 5.Learned counsel for the Petitioner emphasises that the incomereferred to by the Respondent has been duly offered to tax. 6.Issue notice.Mr.Zoheb Hossain, learned standing counsel acceptsnotice on behalf of the Respondent-Revenue. He states that as the noticeissued under Section 148A(b) dated 31[st]March, 2022 had been received bythe Petitioner on 25[th]April, 2022 i.e. on the same date the order underSection 148A(d) of the Act had been passed,he has no objection if theimpugned order and notice dated 25[th]April, 2022 are set aside.He alsostates that he would ask the Assessing Officer to examine the factthreadbare, especially, keeping in view the averments made by the Petitionerin its letter dated 27[th]April, 2022. 7.In view of the aforesaid statements made by Mr.Zoheb Hossain,learned counsel for the Petitioner does not wish to press the present writpetition any further. 6.Issue notice.Mr.Zoheb Hossain, learned standing counsel acceptsnotice on behalf of the Respondent-Revenue. He states that as the noticeissued under Section 148A(b) dated 31[st]March, 2022 had been received bythe Petitioner on 25[th]April, 2022 i.e. on the same date the order underSection 148A(d) of the Act had been passed,he has no objection if theimpugned order and notice dated 25[th]April, 2022 are set aside.He alsostates that he would ask the Assessing Officer to examine the factthreadbare, especially, keeping in view the averments made by the Petitionerin its letter dated 27[th]April, 2022. 7.In view of the aforesaid statements made by Mr.Zoheb Hossain,learned counsel for the Petitioner does not wish to press the present writpetition any further. 8.Accordingly, with consent of the parties, the impugned order issuedunder Section 148A(d) of the Act dated 25[th]April, 2022as well as thenotice issued under Section 148 of the Act dated 25[th]April, 2022 arequashed and the matter is remanded back to the Assessing Officer to decidethe matter afresh in accordance with law within eight weeks, after giving anopportunity of hearing to the Petitioner. Moreover, in view of the avermentsmade by the Petitioner in its letter dated 27[th]April, 2022 as well as Form 15-CA referred to in Section 148A(b) notice, this Court directs the AssessingOfficer to apply his/her mind diligently. 9.With the aforesaid directions, present writ petition along with pendingapplication stands disposed of. MANMOHAN, J JULY 8, 2022KA MANMEET PRITAM SINGH ARORA, J