Delhi High Court Stays Section 148 Reassessment Against Dish Infra Services: Goodwill Depreciation, ITC Reversal & Audit Objection as "Information" Under Scanner
Background and Overview
The Delhi High Court recently intervened in a significant reassessment matter involving Dish Infra Services Private Limited, staying proceedings initiated by the Assessing Officer under Section 148 of the Income Tax Act, 1961. The case raises critical and far-reaching legal questions — particularly around whether an audit objection can legitimately constitute "information" for the purpose of triggering reassessment proceedings under Section 148, and whether such proceedings can be validly invoked for assessment years prior to 01.04.2021.
The dispute centres on a notice dated 26.03.2025 issued under Section 148A(1) of the Income Tax Act, 1961, and the subsequent order dated 29.06.2025 passed thereunder, along with a notice of the same date issued under Section 148. The High Court, upon hearing both sides, directed that all proceedings in furtherance of these actions shall remain stayed until further orders, and listed the matter for hearing on 01.12.2026.
Three Grounds Raised by the Assessing Officer
The Assessing Officer sought to initiate reassessment proceedings against the petitioner on the following three distinct counts:
Ground 1: Alleged Doubtful Reversal of Input Tax Credit — Rs. 15.76 Crores
The AO flagged the reversal of Input Tax Credit amounting to Rs. 15.76 Crores in connection with an invoice raised by M/s Interria Multibiz Pvt. Ltd., characterising the same as doubtful in nature.
Ground 2: Alleged Bogus Transactions with M/s One Point One Solutions Pvt. Ltd. — Rs. 36.52 Crores
The AO alleged that the petitioner had entered into fictitious or sham transactions worth Rs. 36.52 Crores with M/s One Point One Solutions Pvt. Ltd. (OPOS) for the purpose of availing Input Tax Credit.
Ground 3: Non-Allowability of Depreciation on Goodwill — Rs. 443.26 Crores
The AO sought to disallow depreciation of Rs. 443.26 Crores claimed by the petitioner on the purchase of goodwill valued at Rs. 1,773 Crores, contending that such depreciation is not permissible in law.
Petitioner's Arguments Before the Delhi High Court
Senior Counsel Mr. S. Ganesh, appearing on behalf of the petitioner, advanced detailed submissions challenging each of the three grounds.
On the ITC Reversal Issue (Ground 1)
The petitioner submitted that the GST Authorities themselves had not yet concluded their inquiry into the disputed transaction. This position was supported by reference to the dissemination report dated 02.01.2025, which demonstrated that the matter remained pending before the GST department without any final determination. The petitioner further clarified that the amount in question had been treated as a revenue-neutral payment, since the assessee had neither claimed it as revenue expenditure, nor as depreciation, nor had it availed any Input Tax Credit on it.