Delhi High Court Stays Reassessment Proceedings Over Non-Supply Of Material To Taxpayer

The Delhi High Court has stayed reassessment proceedings initiated against an assessee under Section 148 of the Income Tax Act, 1961, after the assessee submitted that the material relied upon by the Assessing Officer (AO) had not been supplied to him.

The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta issued notice to the Income Tax Department and stayed further proceedings pursuant to notice dated June 29.

Reassessment proceedings had been initiated in relation to insurance commission amounting to Rs. 90,64,748 received by the Petitioner from IFFCO-Tokio General Insurance Company Ltd.

Petitioner's counsel submitted that the commission amount had already been duly reflected in his return of income. It was further argued that despite the Petitioner having furnished a satisfactory reply, the AO passed an order under Section 148A(3) and issued a notice under Section 148, deciding to continue with the reassessment proceedings.

During the hearing, the Department pointed to a document referred to as “verification detail attached”, contending that it constituted the material relied upon.

However, Petitioner asserted that he had not received any document apart from the annexures enclosed with the writ petition.

The Court then issued notice to the respondents and granted them four weeks to file their reply.

“Meanwhile, the proceedings in furtherance of the notice dated 29.06.2026 issued under Section 148 of the Act of 1961 shall remain stayed,” it ordered.

The matter is now listed on November 26.

For Petitioner: Advocate Rajesh Mahna, Advocate Ramanand Roy, Advocate Vikram Kakar and Advocate Mayank Kotus.

For Respondent: Senior Standing Counsel Gaurav Gupta, Junior Standing Counsel Shivendra Singh, Junior Standing Counsel Yojit Pareek with Advocate Surya Jindal.