Delhi High Court Quashes Section 148 Notice For Assessment Year Mismatch In Glance Inmobi Case
The Case
GLANCE INMOBI PTE LTD. Vs THE ASSISTANT COMMISSIONER OF INCOME-TAX & ANR.
Case No.: W.P.(C)/12953/2026
Decided on: 09/14/2026
CNR: DLHC010420122026 ·
High Court of Delhi
The Legal Issue
The petitioner challenged the proceedings initiated against it under Section 148 of the Income Tax Act, 1961. The Court examined whether the notice dated 27.03.2026 issued under Section 148A(1) for Assessment Year 2021-22 was valid when the transactions mentioned in the annexure pertained to Financial Year 2021-22 (Assessment Year 2022-23). The question was whether the Assessing Officer's order dated 29.06.2026 rejecting the petitioner's objections and the consequential notice under Section 148 were contrary to facts and law.
Facts of the Case
The petitioner filed a writ petition under Article 226 of the Constitution of India, 1950, challenging proceedings initiated under Section 148 of the Income Tax Act, 1961. The first jurisdictional notice was issued on 27.03.2026 under Section 148A(1) for Assessment Year 2021-22, based on details of Form 15CA regarding tax deducted at source from remittances to entities outside India during Financial Year 2021-22. The petitioner replied on 22.06.2026, objecting that the alleged escaped income of Rs. 14,11,86,727/- pertained to Financial Year 2021-22 (Assessment Year 2022-23), not Assessment Year 2021-22. The Assessing Officer did not drop the proceedings, rejected the objections, and issued a notice under Section 148 on 29.06.2026. The petitioner asserted that all transactions in the annexure related to Financial Year 2021-22.
Summary of the Decision
The Court held that the jurisdictional notice dated 27.03.2026 was issued for Assessment Year 2021-22, whereas the transactions mentioned in the annexure related to the period between 01.04.2021 and 31.03.2022, i.e., Financial Year 2021-22, and obviously not to Assessment Year 2021-22. Since the transactions did not relate to Assessment Year 2021-22, the order impugned dated 29.06.2026 was clearly contrary to the facts and law. The Assessing Officer proceeded with a pre-determined mind, and the impugned order suffered from a manifest and apparent error on the face of the record. The Court set aside the order dated 29.06.2026 passed under Section 148A(3) of the Act of 1961 and quashed the consequential notice dated 29.06.2026 issued under Section 148. The Court clarified that the Assessing Officer shall be at liberty to issue a fresh notice under Section 148A(1) for the applicable assessment year, if he proposes to proceed in relation to the transactions mentioned in Form 15CA for Financial Year 2021-22 or on any other information relevant to Assessment Year 2021-22 in accordance with law, subject to the limitation under Section 149 of the Act of 1961. The petition was allowed, and pending applications were disposed of.
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