Gaurav Dalmia vs Deputy Director Of Income Tax Investigation Unit 2 (3) Delhi & Ors.
- Court
- Delhi High Court
- Case type
- Writ Petition Civil
- Decided on
- 27-02-2026
$~22 and 23
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision : 27.02.2026
+ W.P.(C) 8352/2025
GAURAV DALMIA .....Petitioner
Through: Mr. Siddhant Kumar and Ms. Shagun
Chopra, Advs.
versus
DEPUTY DIRECTOR OF INCOME TAX INVESTIGATION UNIT
2 (3) DELHI & ORS. .....Respondents
Through: Mr. Gaurav Gupta, SSC, Mr.
Shivendra Singh and Mr. Yojit
Pareek, JSCs and Mr. Surya Jindal,
Adv.
23
+ W.P.(C) 11710/2025 & CM APPL. 47981/2025
MRIDU HARI DALMIA .....Petitioner
Through: Mr. Siddhant Kumar and Ms. Shagun
Chopra, Advs.
versus
BUREAU OF IMMIGRATION & ANR. .....Respondents
Through: Mr. Ishkaran Singh Bhandari, CGSC
and Mr. Piyush Yadav, Adv. for R-1
Mr. Gaurav Gupta, SSC, Mr.
Shivendra Singh and Mr. Yojit
Pareek, JSCs and Mr. Surya Jindal,
Adv.
Mr. Sanjay Pal (GP) for UOI
CORAM:
HON'BLE MR. JUSTICE DINESH MEHTA
HON'BLE MR. JUSTICE VINOD KUMAR
JUDGMENT
DINESH MEHTA, J. (ORAL)
1. By way of instant writ petition, the petitioners have challenged the
respondent’s action of issuing lookout circular and continuing with it until
W.P(C) 8352/2025 and 11710/2025 Page 1 of 5
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:27.02.2026
20:03:59
today without any reason or rhythm.
2. Mr. Siddhant Kumar, learned counsel for the petitioner submitted that
a search was conducted at petitioners’ resident so also their business
premises on 17.03.2021. In April/May, 2021, a lookout circular was issued
that too without intimation to the petitioners. When the petitioners learned
about the issuance of said lookout circular, the petitioner submitted a
representation dated 19.05.2021 but the same did not find favours of the
respondents and letter dated 10.06.2021 was issued by the respondent
rejecting the request to lift the restraints of international travel on the
petitioners.
3. Learned counsel for the petitioners asserted that since May, 2021, the
petitioners have been cooperating with the Department and joining the
proceedings as and when called upon by way of filing representations.
4. He submitted that the petitioners were lastly called upon by the
respondents in June, 2021 and thereafter, no notice has been issued to the
petitioners and therefore, there is no question of any non-cooperation on the
part of the petitioners.
5. For completion of factual matrix, learned counsel informed that
assessment orders came to be passed by the Assessing Officer (AO) between
27.03.2023-19.05.2023 or Assessment Year 2017-18 to 2020-2021 which
was challenged before the Commissioner of Income Tax (Appeals), who
vide orders dated between 19.07.2024-31.07.2024 partly allowed the
appeals. The orders of the appellate authority have been affirmed by the
Income Tax Appellate Tribunal ( hereinafter referred to as ‘the Tribunal’ )
vide its order dated between 23.07.2025-29.01.2026, and quashed the
assessment under Section 143 (3) of the Income Tax Act, 1961 ( hereinafter
W.P(C) 8352/2025 and 11710/2025 Page 2 of 5
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:27.02.2026
20:03:59
referred to as ‘the Act of 1961’ ).
6. Learned counsel submitted that as of today, neither any proceeding is
pending against the petitioner nor any demand arising out of search
conducted at the petitioners’ place is due.
7. He argued that in spite of aforesaid factual matrix, the respondents
have continued with lookout circular which has interfered with the
petitioners’ freedom. As and when they plan to go abroad, they have to take
permission from Income Tax Department which takes a substantial time.
The petitioners are renowned businessmen and have to go abroad on many
occasions for their business trips and the circular in turn affects their
business rights.
8. Mr. Siddhant Kumar, learned counsel argued that the action of the
respondents have, in this way violated petitioners’ fundamental rights
guaranteed under Article 14, 19(1)G so also Article 21 of the Constitution of
India inasmuch as the petitioners have been confined in a way.
9. Mr. Gaurav Gupta, learned Senior Standing Counsel, on the other
hand, submitted that so far as the issuance of lookout circular is concerned,
the respondents were well justified and no citizen can as a matter of right
claim that a lookout circular cannot be issued as there may be a possibility
of fleeing.
10. He submitted that so far as the proceedings under the Act of 1961 are
concerned, the same might have been concluded but the respondent-
Department had issued reference under Foreign Tax and Tax Research
Division (FT&TRD) under DTAA to various countries so as to ascertain
whether there are any assets generated or acquired by the petitioners out of
India. Since the respondents are in the process of eliciting such information,
W.P(C) 8352/2025 and 11710/2025 Page 3 of 5
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:27.02.2026
20:03:59
the lookout circular should not be interfered with.
11. Heard learned counsel for the parties.
12. In the present factual backdrop, so far as the proceedings under the
Act of 1961 are concerned, they have been culminated and as of today, not
even a demand is outstanding against the petitioners. Search was conducted
on 17.03.2021 and the respondents if have made any reference under
FT&TRD, the proceedings are lying pending for about five years.
13. If for one reason or the other, the respondents are not in a position to
gather or elicit information from the foreign countries, the petitioners’ rights
cannot be kept suspended for an indefinite period.
14. We are, therefore, of the view that the respondents’ action of
continuing with the lookout circular is violative of petitioners’ fundamental
rights.
15. In the present factual backdrop, we are of the view that in case the
petitioners furnish an undertaking that they will not alienate, transfer or
otherwise create third party rights qua the assets they possess and own
outside India and if so choose to, they will intimate the Income Tax
Department at least thirty days in advance. In case such undertaking is
furnished, their lookout circular deserves to be set aside.
16. The lookout circulars issued in relation to petitioners are hereby set
aside.
17. Both the petitioners shall furnish an undertaking to the above effect to
this Court on or before 15.03.2026 after providing a copy thereof to Mr.
Gaurav Gupta, learned Senior Standing Counsel. In case, the petitioners
violate the undertaking so furnished, the respondent-Department shall be
free to initiate any action as per law including to prefer proceedings of
W.P(C) 8352/2025 and 11710/2025 Page 4 of 5
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:27.02.2026
20:03:59
contempt of Court in accordance with law.
18. Needless to observe that the aforesaid stipulation will not be
construed to mean that the petitioners shall be restrained from alienating or
transferring their assets.
19. In view of above, these petitions stand allowed and pending
application is disposed of.
DINESH MEHTA, J
VINOD KUMAR, J
FEBRUARY 27, 2026/
ss
W.P(C) 8352/2025 and 11710/2025 Page 5 of 5
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:27.02.2026
20:03:59