Gaurav Dalmia Vs Deputy Director of Income Tax Investigation Unit 2 (3) Delhi & Ors. (Delhi High Court)
The Delhi High Court considered a writ petition challenging the issuance and continued operation of a lookout circular against the petitioners by the Income Tax Department. The petitioners contended that the lookout circular had been issued following a search conducted at their residence and business premises on 17 March 2021. They stated that the circular was issued in April or May 2021 without any prior intimation. Upon learning about it, the petitioners submitted a representation dated 19 May 2021 seeking its withdrawal. However, the request was rejected by the authorities through a letter dated 10 June 2021.
The petitioners submitted that they had cooperated with the Income Tax Department since May 2021 and had participated in the proceedings whenever called upon. According to them, the last interaction with the authorities occurred in June 2021, after which no notice was issued. Therefore, they argued that there had been no lack of cooperation on their part.
It was further stated that assessment orders for Assessment Years 2017–18 to 2020–21 were passed by the Assessing Officer between 27 March 2023 and 19 May 2023. These orders were challenged before the Commissioner of Income Tax (Appeals), who partly allowed the appeals through orders passed between 19 July 2024 and 31 July 2024. Subsequently, the Income Tax Appellate Tribunal affirmed the appellate authority’s decisions through orders dated between 23 July 2025 and 29 January 2026 and quashed the assessments passed under Section 143(3) of the Income Tax Act, 1961.
