Delhi HC Upholds Reassessment Notice Despite Initial Notice Addressed to Defunct Entity

By CA Sandeep Kanoi Income Tax Judiciary February 15, 2025

TaxGuru Citation: 2025 taxguru.in 1208
Case Name: Nokia Solutions And Networks India Private Limited Vs DCIT (Delhi High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Delhi High Court

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Nokia Solutions And Networks India Private Limited Vs DCIT (Delhi High Court)

Nokia Solutions and Networks India Pvt. Ltd. challenged a notice issued under Section 148 of the Income Tax Act for the assessment year 2014-15. The notice, dated April 9, 2021, was addressed to Nokia Siemens Networks India Pvt. Ltd., a company that had already been amalgamated with Nokia India. Nokia argued that since the notice was issued to a non-existent entity, it should be quashed, invalidating all further reassessment proceedings. However, the court referred to the Supreme Court’s ruling in Union of India v. Ashish Agarwal (2022), which allowed such notices to be deemed as issued under Section 148A(b) instead. Consequently, the impugned notice could not be outrightly set aside but had to be treated under the new procedural framework introduced by the Finance Act, 2021.

The Delhi High Court ruled that a fresh notice dated July 29, 2022, was issued under Section 148 after following the required procedure. Since this new notice correctly named Nokia India, the earlier mistake did not invalidate the proceedings. The court found no merit in Nokia’s claim that reassessment was vitiated due to the initial notice being addressed to a defunct entity. As a result, the reassessment process for AY 2014-15 continues based on the revised notice, and the petition was disposed of accordingly.