Sarthak Gupta Vs ITO (Delhi High Court)
The Delhi High Court heard the petition filed by Sarthak Gupta seeking to quash the notice issued under Section 148 dated 26 July 2022 and the order passed under Section 148A(d) dated 25 July 2022 of the Income Tax Act, 1961, relating to Assessment Year (AY) 2014–15. The petitioner argued that the proceedings were time-barred in light of the Supreme Court’s ruling in Union of India & Ors. v. Rajeev Bansal [2024 INSC 754], which had been followed by the Delhi High Court in Mectech Knitfabs Pvt. Ltd. v. DCIT Circle 16(1), New Delhi [2025 (5) TMI 1967]. The counsel for the respondents did not contest this submission.
The Court referred to its earlier decision in Lombard Portfolio Pvt. Ltd. v. DCIT, Circle 13(1) & Another (W.P.(C) 8349/2023), where the issue regarding AY 2015–16 and the Finance Act, 2021 had been examined. In that case, the Court held that notices and orders issued under Sections 148A and 148 after 1 April 2021 were beyond the limitation period prescribed under Section 149 as amended by the Finance Act, 2021. The Court noted that the issue was no longer res integra, as similar findings had been upheld by the Bombay and Rajasthan High Courts, with the Supreme Court dismissing the Revenue’s special leave petition.
