Makemytrip India Private Limited Vs DCIT (Delhi High Court)
The Delhi High Court considered two writ petitions filed for Assessment Years 2020–21 and 2021–22, challenging reassessment proceedings initiated under the Income Tax Act, 1961. The petitions assailed (i) show cause notices dated 13.03.2025 issued under Section 148A(1), (ii) orders dated 29.06.2025 passed under Section 148A(3), and (iii) consequential notices of the same date issued under Section 148 of the Act.
The core grievance of the petitioner was that the show cause notices under Section 148A(1) were vague and failed to disclose the information or reasons suggesting that income chargeable to tax had escaped assessment. It was pointed out that the notices merely referred to a “search and seizure under section 132 on MLBEs of Insurance Sector (Ajay Mehta Group)” without explaining how this led to any escapement of income in the petitioner’s case. According to the petitioner, despite detailed replies explaining the nature and manner of receipt of amounts aggregating to ₹11,00,80,752 and ₹39,27,95,754 for the relevant assessment years, the Assessing Officer did not consider these explanations while passing the orders under Section 148A(3).
The petitioner further relied on the statutory scheme of Section 148A(1), contending that the provision itself mandates that a show cause notice must be accompanied by information suggesting escapement of income. In the absence of such information, the initiation of reassessment proceedings was argued to be contrary to law.
