{"id":310367,"date":"2023-12-29T18:00:52","date_gmt":"2023-12-29T12:30:52","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=310367"},"modified":"2024-01-04T09:56:46","modified_gmt":"2024-01-04T04:26:46","slug":"delhi-hc-upholds-constitutional-validity-of-section-115bbe-of-income-tax-act-1961-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/12\/29\/delhi-hc-upholds-constitutional-validity-of-section-115bbe-of-income-tax-act-1961-legal-news\/","title":{"rendered":"Delhi HC upholds constitutional validity of Section 115BBE of Income Tax Act, 1961; Says \u2018cannot be held unconstitutional on apprehension of misuse\u2019"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Delhi High Court:<\/span> In a writ petition filed to challenge the orders dated 25-07-2022, passed under Section <doclink docname=\"Income Tax Act, 1961\" actblocktype=\"Section\" sectionno=\"148-A\" doi=\"\" match=\"no\">148A(d)<\/doclink> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002955939\" target=\"_blank\" rel=\"noopener\">Income Tax Act, 1961<\/a> (&#8216;the Act&#8217;), the Division Bench of <span style=\"font-weight: bold;\">Manmohan, ACJ*<\/span> and Mini Pushkarna, JJ., opined that, unless the contrary intention was proved, it must be presumed, that administration and application of a particular law would be done not with an evil eye and unequal hand. Thus, the Court opined that, at the present stage, Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001559253\" target=\"_blank\" rel=\"noopener\">115-BBE<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002955939\" target=\"_blank\" rel=\"noopener\">Act<\/a> could not be held unconstitutional on the ground that there was an apprehension of misuse of the provision.<\/p>\n<p style=\"margin-bottom: 3%;\">In an instant case, the petitioner stated that the notices issued under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001559392\" target=\"_blank\" rel=\"noopener\">148<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002955939\" target=\"_blank\" rel=\"noopener\">Act<\/a> had been issued after three years from the end of the relevant Assessment Years and they could have been issued after obtaining the sanction from the Principal Chief Commissioner of Income Tax and not from the Principal Commissioner of Income Tax, as had been done in the present cases.<\/p>\n<p style=\"margin-bottom: 3%;\">However, the respondent contended that in the present cases, after passing the order under Section <doclink docname=\"Income Tax Act, 1961\" actblocktype=\"Section\" sectionno=\"148-A\" doi=\"\" match=\"no\">148-A(d)<\/doclink> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002955939\" target=\"_blank\" rel=\"noopener\">Act<\/a>, final assessment orders had been passed for assessment years. Further, issue of limitation, being a mixed question of fact and law should be raised before the Appellate Authorities. However, the petitioner stated that the constitutional validity of Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001559253\" target=\"_blank\" rel=\"noopener\">115-BBE<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002955939\" target=\"_blank\" rel=\"noopener\">Act<\/a> could not be adjudicated upon by the Appellate Authority.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court opined that it was a settled law that statutory acts and their provisions were not to be declared unconstitutional on fanciful theory that the power would be exercised in an unrealistic fashion or on the ground that there was an apprehension of misuse of statutory provision or possibility of abuse of power. The Court relied on <span style=\"font-style: italic;\">Maganlal Chhaganlal (P) Ltd. v. Municipal Corporation of Greater Bombay<\/span>, <a href=\"https:\/\/www.scconline.com\/Members\/NoteView.aspx?enc=KDE5NzQpIDIgU0NDIDQwMiYmJiYmNDAmJiYmJlNlYXJjaFBhZ2U=\" target=\"_blank\" rel=\"noopener\">(1974) 2 SCC 402<\/a>, and <span style=\"font-style: italic;\">Collector of Customs v. Nathella Sampathu Chetty<\/span>, <a href=\"https:\/\/www.scconline.com\/Members\/NoteView.aspx?enc=MTk2MiBTQ0MgT25MaW5lIFNDIDMwJiYmJiY0MCYmJiYmU2VhcmNoUGFnZQ==\" target=\"_blank\" rel=\"noopener\">1962 SCC OnLine SC 30<\/a> and opined that, unless the contrary intention was proved, it must be presumed, that administration and application of a particular law would be done not with an evil eye and unequal hand. Thus, the Court opined that, at the present stage, Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001559253\" target=\"_blank\" rel=\"noopener\">115-BBE<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002955939\" target=\"_blank\" rel=\"noopener\">Act<\/a> could not be held unconstitutional on the ground that there was an apprehension of misuse of the provision.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court further relied on <span style=\"font-style: italic;\">CIT v. Chhabil Das Agarwal<\/span>, <a href=\"https:\/\/www.scconline.com\/Members\/NoteView.aspx?enc=KDIwMTQpIDEgU0NDIDYwMyYmJiYmNDAmJiYmJlNlYXJjaFBhZ2U=\" target=\"_blank\" rel=\"noopener\">(2014) 1 SCC 603<\/a> and opined that it was settled law that the Act provided a complete machinery for assessment or re-assessment of tax and the assessee was not permitted to abandon that machinery to invoke the jurisdiction of the High Court under Article <doclink docname=\"Constitution of India\" actblocktype=\"Article\" sectionno=\"226\" doi=\"\" match=\"no\">226<\/doclink> of the <doclink docname=\"Constitution of India\" actblocktype=\"\" sectionno=\"\" doi=\"\" match=\"no\">Constitution<\/doclink>. Thus, the Court granted the liberty to the petitioner to raise all contentions and submissions before the Appellate Authority in accordance with the law.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Triveni Enterprises Ltd. v. CIT, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/07Q8j55M\" target=\"_blank\" rel=\"noopener\">2023 SCC OnLine Del 8343<\/a>, decided on 18-12-2023<\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Judgment authored by- Acting Chief Justice Manmohan<\/span><\/strong><\/p>\n<hr\/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the Petitioner:<\/span> Nishit Gandhi, Advocate;<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the Respondents:<\/span> Aseem Chawla with Pratishtha Chaudhary and Aditya Gupta, Advocates.<\/p>\n<h3 style=\"color: #000080;\">Buy Constitution of India &nbsp;<a href=\"https:\/\/www.ebcwebstore.com\/product_info.php?products_id=33\" target=\"_blank\" rel=\"noopener\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product_info.php?products_id=33\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/constitution-of-india-300x200.jpg\" alt=\"Constitution of India\" width=\"300\" height=\"200\" class=\"aligncenter size-large wp-image-294438\" srcset=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/constitution-of-india-300x200.jpg 300w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/constitution-of-india-768x511.jpg 768w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/constitution-of-india-440x293.jpg 440w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/constitution-of-india-650x433.jpg 650w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/constitution-of-india.jpg 886w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/constitution-of-india-60x40.jpg 60w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">&#8220;It is settled law that the Act provides a complete machinery for assessment or re-assessment of tax and the assessee is not permitted to abandon that machinery to invoke jurisdiction of the High Court under Article 226 of the Constitution.&#8221;<\/p>\n","protected":false},"author":67011,"featured_media":303940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[63943,8731,2543,13081,63944],"class_list":["post-310367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-apprehension-of-misuse","tag-constitutional-validity","tag-Delhi_High_Court","tag-income-tax-act","tag-section-115bbe"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Delhi HC upholds constitutional validity of Section 115BBE of Income Tax Act, 1961| SCC Blog<\/title>\n<meta name=\"description\" content=\"Delhi High Court opined that at the present stage, Section 115BBE of the Act could not be held unconstitutional on the ground that there was an apprehension of misuse of the provision.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2023\/12\/29\/delhi-hc-upholds-constitutional-validity-of-section-115bbe-of-income-tax-act-1961-legal-news\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Delhi HC upholds constitutional validity of Section 115BBE of Income Tax Act, 1961; 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