The Delhi High Court has set aside a reassessment order issued against Independent News Service Pvt. Ltd. (INSPL), the parent company of India TV, holding that the income tax department had exceeded the scope of its initial notice under Section 148A(b) of the Income Tax Act, 1961.
The reassessment proceedings were initiated based on a 2019 survey at the J&K Bank headquarters in Srinagar, during which data relating to foreign remittances was collected. The Assessing Officer (AO) alleged that foreign remittances amounting to ₹6.50 crore by INSPL during AY 2017–18 had escaped assessment. However, the final order passed under Section 148A(d) expanded the scope, alleging unexplained remittances of ₹11.37 crore a ground not mentioned in the original notice.
INSPL challenged the order, arguing that the remittances cited in the notice did not pertain to them, and submitted a confirmation from J&K Bank in support. The High Court, led by Justices Vibhu Bakhru and Tejas Karia, held that the AO had travelled beyond the scope of the original notice and quashed the impugned order on that ground alone, without going into the merits of the bank’s confirmation.
The Court clarified that while the existing order could not stand, the AO was not precluded from initiating fresh proceedings if credible information suggesting escaped income is found, but any such action must be taken strictly in accordance with the law.
Appearances in the case
Petitioner: Mr M.P. Rastogi with Mr Ram Naresh and Mr Shivam Malik, Advocates.
Respondents: Mr Gaurav Gupta, SSC with Mr Shivendra Singh and Mr Yojit Pareek, JSCs
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