New Delhi, Dec 15 (FN Representative) In a setback to Income Tax (I-T) department, the Delhi High Court on Wednesday quashed over 1,300 reassessment notices sent to taxpayers after April 1, 2021 under Section 148 of the old regime. Passing its judgement in a batch of over 1,300 writ petitions, the Court termed the notices as illegal and contradictory to provisions of Income Tax Act as amended by the Finance Act 2021. The Income Tax department had issued notices to taxpayers alleging escapement of income liable for tax.
The taxpayers had challenged the reassessment notices by filing writ petitions. They sought quashing of the reassessment notices issued post 31st March, 2021. “…. the impugned reassessment notices issued under Section 148 of the Income Tax Act, 1961 are quashed and the present writ petitions are allowed,” said the Division bench of the High Court of Delhi, comprising Justices Manmohan and Navin Chawla. “If the law permits the respondents/revenue to take further steps in the matter, they shall be at liberty to do so. Needless to state that if and when such steps are taken and if the petitioners have a grievance, they shall be at liberty to take their remedies in accordance with law,” the Bench said. Commenting on the development, Shailesh Kumar, Partner, Nangia & Co LLP said that the judgment will not only provide relief to thousands of taxpayers, who have filed similar petitions before Hon’ble Delhi High Court, but will also have favourable impact for taxpayers, who have filed similar petitions before other High Courts across the country, viz. Bombay High Court, Gujarat High Court, Karnataka High Court, Calcutta High Court, etc. “The view taken by one High Court is not binding on other high courts, but definitely carry persuasive value for other High Courts,” he said.