Dish Infra Services Private Limited Vs ACIT (Delhi High Court)
Summary: The Delhi High Court considered the challenge to the notice dated 26.03.2025 issued under Section 148A(1) of the Income Tax Act, 1961 for initiating proceedings against the petitioner. The Assessing Officer had sought to proceed on three grounds: alleged doubtful reversal of Input Tax Credit of Rs. 15.76 Crores relating to an invoice raised by M/s Interria Multibiz Pvt. Ltd.; an alleged bogus transaction of Rs 36.52 Crores with M/s One Point One Solutions Pvt. Ltd. (OPOS) for availing Input Tax Credit; and the alleged non-allowability of depreciation of Rs. 443.26 Crores on purchase of goodwill of Rs 1,773 Crores. The petitioner submitted that, regarding the first issue, the GST Authorities had not completed their enquiry, as reflected in the dissemination report dated 02.01.2025. Regarding the second issue, the petitioner submitted that its name did not appear in the list of six firms with whom M/s One Point One Solutions Pvt. Ltd. had allegedly transacted dubiously. On goodwill, the petitioner contended that the issue was legally untenable and debatable and that the proceedings had been triggered on the basis of an audit objection, whereas Explanation 1 to Section 148, which included audit objection in the expression “information”, was inserted with effect from 01.04.2021, while the assessment year in question was 2019-20. The Revenue submitted that the proceedings could not be alleged to be without jurisdiction merely on the basis of the reasons recorded in the Section 148A(1) notice and contended that the subsequent insertion of the explanation would apply because the proceedings had been initiated after 01.04.2021. The High Court held that the matter required consideration, particularly because the GST Authorities had not given their final view on the first transaction and the petitioner claimed that it had neither claimed depreciation nor claimed the amount as revenue expenditure nor any input tax credit. On the second issue, the Court found that, on the material available on record, the petitioner’s name did not appear in the list of persons reportedly transacting with M/s One Point One Solutions Pvt. Ltd. The Court observed that whether the goodwill issue could constitute a reason to initiate proceedings under Section 148A required consideration. It further held that whether an audit objection could constitute “information” and whether proceedings under Section 148 could be initiated for a period prior to 01.04.2021 were seminal questions requiring determination, having larger legal implications. The Court issued notice and listed the case on 01.12.2026. Meanwhile, proceedings in furtherance of the impugned order dated 29.06.2025 and the notice of even date issued under Section 148 were directed to remain stayed.
