Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 16 September 2026

Case Overview

  • Parties: Assistant Commissioner of Income Tax (Revenue) as appellant vs. M/s. OMAXE Limited (assesse) as respondent.
  • Background: The dispute stems from a High Court judgment dated 13 July 2012 (Writ Petition (C) No. 7975 of 2011) that quashed a Show‑Cause Notice dated 30 June 2010 and a reassessment order dated 8 November 2011, which had added Rs 65,65,17,999 to OMAXE’s total income for Assessment Year (AY) 2006‑07.
  • OMAXE Ltd., a public limited real‑estate company, filed its return on 30 Nov 2006 declaring gross total income of Rs 89,20,76,630 and claimed a deduction of Rs 78,99,00,509 under Section 80IB(10) for housing projects.
  • The Income Tax Settlement Commission (ITSC) admitted OMAXE’s settlement application on 17 Mar 2008, accepted an additional income surrender of Rs 18 lakh, and determined net taxable income of Rs 89,38,76,630, thereby covering the claimed deduction.
  • The Revenue, after a search on 22 Sept 2005 and a fresh survey on 17‑18 Dec 2009, alleged that OMAXE intended to transfer commercial portions of projects to 100 % subsidiaries to retain the Section 80IB(10) deduction. Consequently, a notice under Section 148 was issued on 30 June 2010 proposing to disallow Rs 55,58,96,486 of deduction across four projects.
  • The Assessing Officer rejected OMAXE’s objections and issued a reassessment order on 8 Nov 2011, adding Rs 65,65,17,999 to total income.
  • OMAXE filed Writ Petition No. 7975 of 2011 in the Delhi High Court on 4 Jan 2012 (amended 9 Jan 2012), challenging the notice and reassessment. The High Court allowed the petition, quashing the reassessment.
  • The Revenue filed an application under Section 245D(6) on 29 Oct 2010 seeking to declare the ITSC order void for misrepresentation; the ITSC rejected this application on 16 Dec 2011.
  • The present appeal before the Supreme Court seeks to overturn the High Court’s decision and reinstate the reassessment.

Final Outcome

  • The Supreme Court dismissed the Revenue’s appeal, affirming the High Court’s judgment.
  • The reassessment notice and the order dated 8 Nov 2011 are quashed; OMAXE is not liable for the additional tax of Rs 65.65 crore.
  • The ITSC settlement order dated 17 Mar 2008 remains final and conclusive under Section 245‑I, precluding any further reassessment by the Assessing Officer.
  • All pending applications, if any, are ordered disposed of.

Topics: Income Tax, Settlement Commission