Delhi High Court Quashes Section 148 Notice As Void And Without Jurisdiction

The Case

MRS NEERU SEHGAL Vs THE PRINCIPAL COMMISSIONER OF INCOME TAX 15, NEW DELHI & ORS.
Case No.: W.P.(C)/2992/2026
Decided on: 09/01/2026
CNR: DLHC010082642026 ·
High Court of Delhi

The Legal Issue

The petitioner challenged the notice dated 31.08.2024 issued under Section 148 of the Income Tax Act, 1961 on various grounds, including that for the very same reason and in respect of the very same transaction, proceedings under Section 148 were earlier initiated vide notice dated 30.03.2024 and culminated in an assessment order dated 31.03.2025.

Facts of the Case

The petitioner is Mrs Neeru Sehgal. The petitioner challenged the notice dated 31.08.2024 issued under Section 148 of the Income Tax Act, 1961. For the very same reason and in respect of the very same transaction, proceedings under Section 148 of the Act of 1961 were earlier initiated vide notice dated 30.03.2024 and culminated in an assessment order dated 31.03.2025. Mr Indruj Singh Rai, learned Senior Standing Counsel for the respondents, could not dispute the aforesaid position of fact and law but submitted that the petition suffers from delay and laches. The writ petition was filed within 18 months.

Summary of the Decision

The Court had no iota of doubt that the impugned notice dated 31.08.2024 relates to the very same transaction for which proceedings had been taken up by the Assessing Officer and had led to assessment order dated 31.03.2025. The impugned notice is fundamentally void and without jurisdiction, and the petition filed within 18 months means the delay is not substantial to be fatal to the petition's maintainability. The impugned notice is beyond the scope of Section 148 of the Act of 1961, as the income had not escaped assessment, for it had already been brought to tax by way of the assessment order dated 31.03.2025. The impugned notice thus seeks to tax the very same income, which has been taxed or was sought to be taxed. The notice is therefore clearly illegal and liable to be quashed. The writ petition is allowed. The impugned notice dated 31.08.2024 is hereby quashed. Pending application(s) also stand disposed of.

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