Delhi HC Granted Stay for Notice issued on the basis of Approval from Incompetent Authority

Nandita Sikka Vs Income Tax Officer (Delhi High Court)

Learned counsel for the petitioner states that the impugned notice has been issued without approval of the competent authority as per Section 151 of the Act. He states that the approval has not only been obtained from an incompetent authority but has also been obtained after a lapse of four years from the relevant assessment year. In support of his submissions, he relies on the judgment and order passed by the Orissa High Court in M/s.Ambika Iron and Steel Pvt. Ltd. Vs. Principal Commissioner of Income Tax and Others in WP(C) 20919/2021.

Issue notice. Ms.Manise Jain, learned counsel for the respondents, accepts notice. She prays for and is permitted to file a counter affidavit within four weeks. Rejoinder affidavit, if any, be filed before the next date of hearing. Till further orders, there shall be a stay of the reassessment proceedings issued pursuant to the notice dated 31st march 2021.

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

Present writ petition has been filed challenging the notice dated 31^st March, 2021 issued under Section 148 of the Income Tax Act, 1961 [‘the Act’] for the assessment year 2015-16.

Learned counsel for the petitioner states that the impugned notice has been issued without approval of the competent authority as per Section 151 of the Act. He states that the approval has not only been obtained from an incompetent authority but has also been obtained after a lapse of four years from the relevant assessment year. In support of his submissions, he relies on the judgment and order passed by the Orissa High Court in M/s. Ambika Iron and Steel Pvt. Ltd. Vs. Principal Commissioner of Income Tax and Others in WP(C) 20919/2021.

Issue notice. Ms.Manise Jain, learned counsel for the respondents, accepts notice. She prays for and is permitted to file a counter affidavit within four weeks. Rejoinder affidavit, if any, be filed before the next date of hearing.

Till further orders, there shall be a stay of the reassessment proceedings issued pursuant to the notice dated 31^st March, 2021.

List on 17 ^th October, 2022.