CNB FINWIZ LTD vs DCIT , CIRCLE 6(1)

Judgment text excerpt

IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 20.05.2025 + W.P.(C) 14082/2018 CNB FINWIZ LTD .....Petitioner Through: Mr. S. Krishnan & Mr. Harshit, Advs. Versus DCIT, CIRCLE 6(1) .....Respondent Through: Mr. Gaurav Gupta, Mr. Shivendra Singh and Mr. Yojit Pareek, Advs. CORAM HON’BLE MR JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA JUDGMENT VIBHU BAKHRU, J 1. The petitioner has filed the present petition under Article 226 of the Constitution of India, inter alia, impugning a notice dated 31.03.2018 [impugned notice] issued by the respondent [Assessing Officer – the AO] under Section 148 of the Income Tax Act, 1961 [the Act] in respect of Assessment Year [AY] 2011-12. The petitioner also impugns an order dated 10.12.2018 [impugned order] passed by the AO rejecting the petitioner’s objections to the reasons recorded in writing for reopening of the assessment and issuance of the impugned notice. 2. The petitioner, essentially, challenges the jurisdiction of the AO to commence the reassessment proceedings in respect of AY 2011-12, inter alia, on the ground that the AO did not have any reason to believe Signature Not Verified Digitally Signed By:RAM KUMAR W.P.(C) 14082/2018 Page 1 of 26 Signing Date:21.05.2025 19:50:26 that the petitioner’s income for AY 2011-12 had escaped assessment. It is the petitioner’s case that the impugned notice has been issued based on surmises and suspicion, and not on the basis of any tangible material, which would furnish any reason to believe that the petitioner’s income for AY 2011-12 had escaped assessment. P REFATORY F ACTS 3. The petitioner is a company incorporated under the Companies Act, 1956 and is engaged in the business of trading in shares, securities, equity and currency derivatives, mutual funds, and provi