Manisha Agarwal Vs ITO (Delhi High Court)
The Delhi High Court in Manisha Agarwal vs ITO examined the validity of reassessment proceedings initiated for Assessment Year (AY) 2014–15. The petitioner challenged multiple actions of the Income Tax Department, including the notice dated 08.06.2021 (deemed notice under Section 148A(b)), the order dated 25.07.2022 under Section 148A(d), and the notice under Section 148 issued on the same date, on grounds of limitation and procedural irregularities.
The petitioner argued that although the initial notice under Section 148A(b) was correctly issued in her name and PAN, the subsequent notice under Section 148 was incorrectly issued in the name of Park City Infrastructure (P) Ltd. for a different assessment year. The petitioner relied on AVS Infrabuild Pvt. Ltd. v. ACIT (Delhi HC, 2023) to contend that such discrepancies render the proceedings invalid.
In response, the Revenue admitted that the notice was initially issued with an incorrect name and PAN but asserted that the error was rectified on the same date by issuing a corrected notice under Section 148. The petitioner, however, further contended that even if the correction were accepted, the proceedings were time-barred under the limitation prescribed by the Income Tax Act, 1961, read with the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).
