Introduction:

The Delhi High Court, comprising Acting Chief Justice Manmohan and Justice Mini Pushkarna, recently addressed a challenge to Section 115BBE of the Income Tax Act in the case of Triveni Enterprises Limited versus ITO. The petitioner contested reassessment orders for three assessment years, challenging the constitutional validity of Section 115BBE, while arguing against the issuance of notices under Section 148 without sanction from the Principal Chief Commissioner of Income Tax.

Arguments:

The petitioner/assessee, represented by Counsel Nishit Gandhi, challenged the reassessment notices’ timing and the authority issuing these notices. They raised concerns about the validity of Section 115BBE and the necessity of obtaining sanctions for issuing notices under Section 148. The department, represented by Counsel Aseem Chawla, argued that the issue of limitation should be addressed before Appellate Authorities and that Section 115BBE cannot be deemed unconstitutional based on mere apprehensions of misuse.

Court’s Judgment:

The High Court upheld the constitutionality of Section 115BBE, emphasizing that statutory acts should not be declared unconstitutional merely based on apprehensions of misuse. It affirmed that the Income Tax Act provides a comprehensive framework for tax assessment or reassessment, emphasizing that invoking the High Court’s jurisdiction under Article 226 should not replace the established machinery under the Act.