Delhi High Court · 2025

W.P.(C) 10960/2016 Page 1 of 4 $~58 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 10960/2016 GAUTAM THADANI .....Petitioner Through: Mr. Ved Jain, Mr. Nischay Kantoor, Ms. Soniya Dodeja, Mr. Govind Gupta and Mr. Divyansh Dubey, Advocates. versus DIRECTOR INCOME TAX (INVESTIGATION) AND ANR ...Respondents Through: Mr. Indruj Singh Rai, SSC, Mr. Sanjeev Menon, JSC, Mr. Rahul Singh, JSC with Mr. Anmol Jagga and Mr. Gaurav Kumar, Advocates for the Revenue. CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 04.02.2025 CM APPL. 6098/2025 1. This is an application filed on behalf of the respondent nos.1, 3 and 4/Revenue seeking clarification of Para 37 of the judgement dated 10.01.2025 to the extent that the respondents/Revenue will be required to release the seized cash in accordance with Para 37 of the judgment, only if no demand has crystallized as on the date of expiry of limitation u/s 153B of the Income Tax Act, 1961 (hereafter the Act) for passing assessment orders u/s 153A of the Act. 2. The present petition came to be disposed of by this Court vide This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 18:37:35 W.P.(C) 10960/2016 Page 2 of 4 judgement dated 10.01.2025 wherein this Court dismissed the challenge made to the impugned order of requisition under Section 132A(l)(c) of the Act and the notices dated 08.10.2018 and 05.11.2018 passed under Section 153A and Section 142(1) of the Act, respectively. However, while dismissing the present petition, this Court observed that if the time-period for framing an assessment under Section 153A of the Act has expired and there is no outstanding demand which has been crystalized against the petitioner, in such case, the seized cash has to be returned within four weeks from the date of the said judgment. The relevant portion of the judgment dated 10.01.2025 is reproduced hereunder:- “35. Having stated above, it is necessary to note that in terms of Section 153B(1)(a) of the Act; the assessment under Section 153A of the Act is required to be completed within a period of twenty-one months from the end of the financial year in which the requisition under Section 132A of the Act was executed. 36. In the present case, the warrant under Section l 32A(1)(c) of the Act was executed on 15.12.2016, thus, the Income Tax Authorities are required to complete the assessment within the time period stipulated under Section 153B(1)(a) of the Act which was required to be reckoned from 15.12.2016. In the present case, it is contended on behalf of the petitioner that the time period for framing an assessment under Section 153A of the Act has expired. Undisputedly, if the time period for framing an assessment under Section 153A of the Act has expired, and there is no outstanding demand, the Income Tax Authorities would have no justification in retaining the seized cash. 37. In view of the above, this court directs that if no demand has been crystalized against the petitioner as yet, the seized cash be returned to the petitioner within a period of four weeks from date.” 3. Learned counsel for the applicants/respondents submits that the re-assessment proceedings for the relevant Assessment Years (AYs) 2011-2012 to 2016-17 were stayed by this Court vide order dated 19.11.2018, which reads thus:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 18:37:35 W.P.(C) 10960/2016 Page 3 of 4 “… W.P.(C) 10960/2016 & CM Appl. 47923/2018 (for impleadment of respondents) Issue notice. Learned counsel as above accepts notice. During the pendency of these proceedings the respondent No.1 is restrained from passing final orders in reassessment proceedings for the block assessment period in question. List on 14th January, 2019...” 4. Learned counsel for the applicants states that the penultimate observations made by this Court in Para 37 of the judgement dated 10.01.2025 appear to have not taken into consideration the interim order which was granted vide order dated 19.11.2018, staying the reassessment proceedings for the relevant AYs 2011-2012 to 2016-2017. Premised thereon, he states that the applicants/respondents seek clarification that the Revenue will be required to release the seized cash in accordance with Para 37 of the judgement dated 10.01.2025, only if no demand has been crystallized as on the date of expiry of limitation under Section 153B of the Act for passing Assessment orders under Section 153A of the Act. He prays accordingly. 5. Learned counsel appearing for the non-applicant/petitioner states that he has no objection in case operative portion of the judgement dated 10.01.2025 is clarified as sought. 6. Having heard learned counsel for the parties and keeping in view the no objection tendered by the learned counsel for non-applicant/petitioner, we allow the present application. Accordingly, Para 37 of the judgement dated 10.01.2025 shall now read as under:- “37. In view of the above, the respondent/Revenue will be This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 18:37:35 W.P.(C) 10960/2016 Page 4 of 4 required to release the seized cash only if no demand has been crystallized as on the date of expiry of limitation under Section 153B of the Act for passing assessment orders under Section 153A of the Act. The said exercise be carried out within four weeks from date.” 7. The application stands disposed of in above terms. DEVENDRA KUMAR UPADHYAYA, CJ TUSHAR RAO GEDELA, J FEBRUARY 4, 2025/rl

W.P.(C) 10960/2016 Page 1 of 4 $~58 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 10960/2016 GAUTAM THADANI .....Petitioner Through: Mr. Ved Jain, Mr. Nischay Kantoor, Ms. Soniya Dodeja, Mr. Govind Gupta and Mr. Divyansh Dubey, Advocates. versus DIRECTOR INCOME TAX (INVESTIGATION) AND ANR ...Respondents Through: Mr. Indruj Singh Rai, SSC, Mr. Sanjeev Menon, JSC, Mr. Rahul Singh, JSC with Mr. Anmol Jagga and Mr. Gaurav Kumar, Advocates for the Revenue. CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 04.02.2025 CM APPL. 6098/2025 1. This is an application filed on behalf of the respondent nos.1, 3 and 4/Revenue seeking clarification of Para 37 of the judgement dated 10.01.2025 to the extent that the respondents/Revenue will be required to release the seized cash in accordance with Para 37 of the judgment, only if no demand has crystallized as on the date of expiry of limitation u/s 153B of the Income Tax Act, 1961 (hereafter the Act) for passing assessment orders u/s 153A of the Act. 2. The present petition came to be disposed of by this Court vide This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 18:37:35 W.P.(C) 10960/2016 Page 2 of 4 judgement dated 10.01.2025 wherein this Court dismissed the challenge made to the impugned order of requisition under Section 132A(l)(c) of the Act and the notices dated 08.10.2018 and 05.11.2018 passed under Section 153A and Section 142(1) of the Act, respectively. However, while dismissing the present petition, this Court observed that if the time-period for framing an assessment under Section 153A of the Act has expired and there is no outstanding demand which has been crystalized against the petitioner, in such case, the seized cash has to be returned within four weeks from the date of the said judgment. The relevant portion of the judgment dated 10.01.2025 is reproduced hereunder:- “35. Having stated above, it is necessary to note that in terms of Section 153B(1)(a) of the Act; the assessment under Section 153A of the Act is required to be completed within a period of twenty-one months from the end of the financial year in which the requisition under Section 132A of the Act was executed. 36. In the present case, the warrant under Section l 32A(1)(c) of the Act was executed on 15.12.2016, thus, the Income Tax Authorities are required to complete the assessment within the time period stipulated under Section 153B(1)(a) of the Act which was required to be reckoned from 15.12.2016. In the present case, it is contended on behalf of the petitioner that the time period for framing an assessment under Section 153A of the Act has expired. Undisputedly, if the time period for framing an assessment under Section 153A of the Act has expired, and there is no outstanding demand, the Income Tax Authorities would have no justification in retaining the seized cash. 37. In view of the above, this court directs that if no demand has been crystalized against the petitioner as yet, the seized cash be returned to the petitioner within a period of four weeks from date.” 3. Learned counsel for the applicants/respondents submits that the re-assessment proceedings for the relevant Assessment Years (AYs) 2011-2012 to 2016-17 were stayed by this Court vide order dated 19.11.2018, which reads thus:- This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 18:37:35 W.P.(C) 10960/2016 Page 3 of 4 “… W.P.(C) 10960/2016 & CM Appl. 47923/2018 (for impleadment of respondents) Issue notice. Learned counsel as above accepts notice. During the pendency of these proceedings the respondent No.1 is restrained from passing final orders in reassessment proceedings for the block assessment period in question. List on 14th January, 2019...” 4. Learned counsel for the applicants states that the penultimate observations made by this Court in Para 37 of the judgement dated 10.01.2025 appear to have not taken into consideration the interim order which was granted vide order dated 19.11.2018, staying the reassessment proceedings for the relevant AYs 2011-2012 to 2016-2017. Premised thereon, he states that the applicants/respondents seek clarification that the Revenue will be required to release the seized cash in accordance with Para 37 of the judgement dated 10.01.2025, only if no demand has been crystallized as on the date of expiry of limitation under Section 153B of the Act for passing Assessment orders under Section 153A of the Act. He prays accordingly. 5. Learned counsel appearing for the non-applicant/petitioner states that he has no objection in case operative portion of the judgement dated 10.01.2025 is clarified as sought. 6. Having heard learned counsel for the parties and keeping in view the no objection tendered by the learned counsel for non-applicant/petitioner, we allow the present application. Accordingly, Para 37 of the judgement dated 10.01.2025 shall now read as under:- “37. In view of the above, the respondent/Revenue will be This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 18:37:35 W.P.(C) 10960/2016 Page 4 of 4 required to release the seized cash only if no demand has been crystallized as on the date of expiry of limitation under Section 153B of the Act for passing assessment orders under Section 153A of the Act. The said exercise be carried out within four weeks from date.” 7. The application stands disposed of in above terms. DEVENDRA KUMAR UPADHYAYA, CJ TUSHAR RAO GEDELA, J FEBRUARY 4, 2025/rl