PC Jeweller Limited Vs ACIT (Delhi High Court)
The Delhi High Court has dismissed a petition by PC Jeweller Limited challenging reassessment notices issued by the Assistant Commissioner of Income Tax (ACIT) for the assessment year 2018-19. The company sought to quash the notices issued under Sections 148A(b) and 148A(d) of the Income Tax Act, 1961, arguing that the Jurisdictional Assessing Officer lacked authority to initiate proceedings. PC Jeweller claimed that a Central Board of Direct Taxes (CBDT) notification from March 29, 2022, mandated a faceless reassessment process, stripping the officer of jurisdiction.
The court, however, rejected this argument, citing its own precedent in the case of K.S. Builders Pvt. Ltd. v. Income Tax Officer. In that ruling, the court had already addressed and decided against the petitioner’s identical claim. Therefore, the court dismissed the petition. It clarified that PC Jeweller’s other rights and contentions could still be argued before the relevant income tax authorities.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The petitioner has filed the present petition, inter alia, praying as under:
“Issue writ in the nature of mandamus/certiorari or any other appropriate writ, order or direction for quashing of:
a. the notice dated 09.08.2024 issued by Respondent No.1 under section 148A(b) of the Act;
b. the order dated 29.08.2024 passed by Respondent No.1 under Section 148A(d) of the Act; and
c. the notice dated 29.08.2024 issued under section 148 of the Act, for assessment year 2018-19, and all proceedings/actions consequent thereto for assessment year 2018-19”
2. The petitioner has premised its challenge to the impugned notices issued under Section 148A(b) of the Income Tax Act, 1961 (hereafter the Act) and Section 148 of the Act on the ground that the Jurisdictional Assessing Officer (JAO) did not have the jurisdiction to initiate the proceedings under Section 148A and 148 of the Act after issuance of the Notification dated 29.03.2022 by the Central Board of Direct Taxes (CBDT) requiring reassessment proceedings to be conducted in a faceless manner.
