Facts of the Case

  • The petitioner challenged the assessment order dated 15.06.2021.
  • A prior assessment order dated 26.11.2019 had already been passed under Section 143(3) for AY 2018–19.
  • Despite completion of assessment, further notices under Section 142(1) were issued in February–March 2021.
  • The petitioner objected to these proceedings, asserting lack of jurisdiction.
  • Two parallel proceedings arose—one pursuant to search proceedings and another under limited scrutiny (CASS).

Issues Involved

  1. Whether the Assessing Officer could pass a second assessment order for the same assessment year after completion of earlier proceedings.
  2. Whether issuance of notices under Section 142(1) after completion of assessment is valid.
  3. Whether simultaneous proceedings by different authorities leading to conflicting orders are sustainable in law.

Petitioner’s Arguments

  • The assessment proceedings had already concluded on 26.11.2019; hence, the Assessing Officer became functus officio.
  • Subsequent notices under Section 142(1) were without jurisdiction and invalid.
  • The second assessment order dated 15.06.2021 was void ab initio.
  • The earlier order was not passed under Sections 153A/153C, reinforcing finality of proceedings.

Respondent’s Arguments

  • Two proceedings were initiated due to inadvertent parallel actions by NeAC and the Assessing Officer.
  • The case involved both search-related assessment and limited scrutiny assessment.
  • The respondent conceded that conflicting assessment orders had been passed.
  • No objection was raised to quashing the impugned assessment order.

Court Order / Findings

  • The Delhi High Court quashed the assessment order dated 15.06.2021.
  • Held that two conflicting assessment orders for the same assessment year cannot stand.
  • Recognized that parallel proceedings resulted in jurisdictional error.
  • Granted liberty to the Revenue to initiate appropriate proceedings in accordance with law.

Important Clarification by Court

  • The Court clarified that it did not adjudicate on the merits of the earlier assessment order dated 26.11.2019.
  • Rights and contentions of both parties regarding the earlier assessment remain open.

Sections Involved

  • Section 143(3), Income Tax Act, 1961
  • Section 142(1), Income Tax Act, 1961
  • Section 153C, Income Tax Act, 1961

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2021:DHC:2463-DB/MMH13082021CW61552021_114050.pdf


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