Section 220(1) Notice Quashed for Non-Service & Delay | HC

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Section 220(1) notice quashed

Case Details: Aps Hydro (P.) Ltd. vs. Union of India [2026] 185 taxmann.com 408 (Delhi)

Judiciary and Counsel Details

  • Dinesh Mehta & Vinod Kumar, JJ.
  • Prabhat Kumar, Adv. for the Petitioner.
  • Indruj Singh Rai, SSC, Sanjeev Menon, Rahul Singh, JSCs, Vijay Joshi, CGSC & Shubham Chaturvedi, Adv. for the Respondent.

Facts of the Case

The petitioner filed a writ petition to challenge the notice dated 16.02.2022 and the corresponding order/communication dated 12.05.2022 issued by the Assistant Commissioner of Income Tax holding the petitioner to be an assessee in default under section 220(1) of the Income Tax Act, 1961.

The petitioner contended that none of the orders passed under section 154, section 143(1)(a), and section 271(1)(c) was ever served upon it. The petitioner came to know about the pendency of the demand only when it received the notice dated 16.02.2022.

The Department contended that copies of the intimations were sent to the petitioner via email.

High Court Held

The Court observed that even if the Department’s plea was taken to be correct, that the intimation and orders under section 154 were served upon the petitioner by way of e-mail, it is against natural conduct that an assessee, having been visited with a huge tax liability of lakhs of Rupees, would not take any remedy.

A simple look at the table in the notice reveals that the demands for various years, running into lakhs of Rupees, are due against the petitioner, and the intimation mentioned therein ranges from 09.02.2013 to 09.11.2020. It is difficult, nay impossible, to believe that, despite a huge pending demand against an assessee since 2013, the department will keep quiet and only get up from its slumber after 9 years.

Accordingly, the Delhi High Court quashed the notice and allowed ninety days to the petitioner to file any objection against any demand.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied