Vedanta Limited Vs ACIT (Delhi High Court)
One Issue – Two Departments; GST closure forces Income-tax rethink. GST Closure Alters the Tax Scene – Delhi HC Remands Vedanta Re-opening Case for Fresh Look 148A Order Melted Down: Vedanta Gets Fresh Hearing After GST Clean Chit
Vedanta Ltd. challenged before the Delhi High Court the notice issued u/s 148A(1) (dated 24 March 2025) & order u/s 148A(3) (dated 23 June 2025) for A.Y. 2019-20, wherein the Income Tax Department alleged escapement of income exceeding ₹424 crores based on a DGGI report on bogus Input Tax Credit (ITC) transactions with M/s Xango Trading (India) Pvt Ltd.
Department relied on intelligence from the DGGI Coimbatore Zonal Unit, alleging wrongful ITC claims when Vedanta’s Tuticorin copper plant was closed. It held that income chargeable to tax had escaped assessment exceeding ₹50 lakh, justifying reopening u/s 149(1)(b).
Vedanta contended that the basis of reopening stood nullified because the GST Department had subsequently (11 July 2025) closed the proceedings on the same ITC issue. It was further urged that post-Finance Act 2025 amendments (effective 1 September 2024) changed Section 148A’s language, mandating independent reasoning before issuing such notices.
The Department countered that the GST order came after the impugned 148A(3) order, hence could not have been considered.
