T S G International Marketing Private Limited Vs ITO (Delhi High Court)
Summary: The Delhi High Court, in an interim order dated 14 July 2025, considered a writ petition filed by T S G International Marketing Private Limited challenging the initiation of reassessment proceedings for Assessment Year 2021-22. The petition assailed an order dated 20 June 2025 under Section 148A(3) of the Income-tax Act, 1961, which held that the matter was fit for issuance of a notice under Section 148.
The impugned order followed a notice dated 24 March 2025 issued under Section 148A(1), calling upon the petitioner to respond to information said to suggest that its income had escaped assessment. The information concerned allegations that certain insurance companies had paid commissions exceeding the permitted maximum and had routed the excess through facilitators.
The petitioner maintained that it had received only the commission to which it was entitled. It also contended that there was no allegation identifying it as one of the facilitators involved in routing any excess commission. The Court noted that, prima facie, the information did not suggest escaped income in the petitioner’s case.
In view of this preliminary assessment, the High Court stayed reassessment proceedings for AY 2021-22 initiated pursuant to the challenged order until the next date of hearing. The Court also issued notice to the Revenue, whose counsel accepted service.
The Revenue was permitted four weeks to file a counter-affidavit, with a rejoinder to follow if necessary. The matter was listed for 22 September 2025. The order grants interim protection only; it does not finally decide the legality of the reassessment or quash the impugned order.
FULL TEXT OF THE ORDER OF DELHI HIGH COURT
CM APPL. 40730/2025(Exemption)
1. Exemption is allowed, subject to all just exceptions.
2. The application stands disposed of.
W.P.(C) 9715/2025 & CM APPL. 40729/2025
3. Issue notice. Mr. Rai, the learned counsel appearing for the Revenue accepts notice.
4. The petitioner has filed the present petition impugning an order dated 20.06.2025 passed under Section 148A(3) of the Income Tax Act, 1961 [the Act] holding that it is a fit case for issuance of notice under Section 148 of the Act for Assessment Year [AY] 2021-22.
5. The said order was passed pursuant to a notice dated 24.03.2025 issued under Section 148A(1) of the Act, whereby the petitioner was called upon to respond with the information available, regarding the income which, according to the Assessing Officer, had escaped assessment.
6. The said notice indicates that it was premised on the information that certain insurance companies had paid commission in excess of the maximum amount and routed the excess amount through facilitators. It is the petitioner’s case that it has received the commission as entitled and there does not appear to be any allegation that the petitioner is one of the facilitators. Thus, prima facie, insofar as the petitioner is concerned, there is no information that suggests that the petitioner’s income has escaped assessment.
7. In view of the above, the reassessment proceedings in respect of AY 2021-22, initiated pursuant to the impugned order, are stayed till the next date of hearing.
8. Let counter-affidavit, if any, be filed within a period of four weeks from date. Rejoinder thereto, if any, may also be filed before the next date of hearing.
9. List on 22.09.2025.
