Case Law Details
Triveni Enterprises Limited Vs ITO (Delhi High Court)
Introduction: In a recent judgment, the Delhi High Court addressed the challenge to Section 115BBE of the Income Tax Act in the case of Triveni Enterprises Limited vs ITO. The petitioner questioned the constitutional validity of this section, alleging potential misuse. This article provides an in-depth analysis of the court’s decision.
Detailed Analysis: The writ petitions contested orders passed under Section 148A(d) of the Income Tax Act for Assessment Years 2015-16, 2016-17, and 2017-18. Additionally, the petitioner challenged the constitutional validity of Section 115BBE. The petitioner argued that the notices issued under Section 148 were time-barred and lacked the required sanction.
The court acknowledged the three-year timeline and noted that the issue of limitation is a mixed question of fact and law, appropriate for Appellate Authorities. The crucial contention revolved around the constitutional validity of Section 115BBE. The petitioner claimed that the section was violative of Article 14, Article 19, and the fundamental economic justice guaranteed in the Constitution.
The petitioner argued that Section 115BBE’s subjective exercise of discretion by Assessing Officers could lead to unfair treatment among similarly placed assessees. The provision, imposing a higher tax rate, was deemed prone to abuse based on a subjective decision to invoke sections 68 to 69D.
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