In a major relief to Goibibo, the Delhi High Court, in a recent judgment, quashed a Section 148 notice for AY 2015-16 in light of the Supreme Court’s ruling in Union of India vs. Rajeev Bansal.

The bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the Finance Act, 2021 ((2021) 432 ITR (Stat) 52) substituted the old regime for reassessment with a new regime. The first provision to section 149 does not expressly bar the application of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. 

The petitioner has challenged the reassessment action initiated under Section 148 of the Income Tax Act, 1961 for Assessment Year (AY) 2015-2016. The petitioner has challenged the order referable to Section 148A(d) of the Income Tax Act and the consequential notice under Section 148 which came to be issued on the same date.

The Supreme Court in the case of Union of India vs. Rajeev Bansal observed that once the first proviso to section 149(1)(b) is read with Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30, 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation.

The court while allowing the writ petition held that the reassessment action for AY 2015-16 would not sustain. The order under Section 148A(d) of the Income Tax Act and consequential notice referable to Section 148 of even date were quashed.

Case Details

Case Title: IBIBO GROUP PRIVATE LIMITED Versus ACIT

Case No.: W.P.(C) 17639/2022

Date: 13.12.2024

Counsel For Petitioner: Salil Kapoor, Sumit Lalchandani, Salil Kapoor, Tarun Chanana, Ananya Kapoor, Utkarsa Gupta, Shivam Yadav

Counsel For Respondent: Sanjay Kumar