Delhi High Court Quashes Section 148 Notice For Same Transaction Already Assessed

The Case

MRS NEERU SEHGAL Vs THE PRINCIPAL COMMISSIONER OF INCOME TAX 15 NEW DELHI & ORS.
Case No.: W.P.(C)/2985/2026
Decided on: 09/01/2026
CNR: DLHC010081902026 ·
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 30.03.2025. The Court considered whether the impugned notice was valid when the income had already been brought to tax by the earlier assessment order.

Facts of the Case

The petitioner, Mrs Neeru Sehgal, filed a writ petition challenging 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 were earlier initiated vide notice dated 30.03.2024, which culminated in an assessment order dated 30.03.2025. The respondents could not dispute this position of fact and law but submitted that the petition suffers from delay and laches. The petition was filed within 18 months of the impugned notice.

Summary of the Decision

The Court found 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 the assessment order dated 30.03.2025. The Court held that the impugned notice is fundamentally void and without jurisdiction, and the petition having been filed within 18 months, the delay is not substantial to be fatal to its maintainability. Furthermore, 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 the assessment order dated 30.03.2025. The impugned notice thus seeks to tax the very same income, which has been taxed or was sought to be taxed, and is clearly illegal and liable to be quashed. The writ petition was allowed and the impugned notice dated 31.08.2024 was quashed. Pending application(s) also stand disposed of.

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