APRANJE JEWELLERS PVT LTD V. PRINCIPAL COMMISSIONER OF

WP/22721/2021

AI Insights

The case involves Apranje Jewellers Pvt. Ltd., which filed a writ petition under Article 226 of the Constitution of India against the notices issued by the income tax authorities for re-assessment proceedings under Section 148 and Section 143(2) read with Section 147 of the Income Tax Act, 1961. The petitioner challenged the notifications issued by the Central Board of Direct Taxes (CBDT) as ultra vires and sought to quash the notices for being issued post the extension of time limit by the 2020 Act, which they argued should not apply to notices issued under the erstwhile Section 148 after 01.04.2021. The court, referencing several precedents, found in favor of the petitioner, quashing the impugned notice and allowing for the possibility of fresh proceedings if conducted in accordance with the law.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 745646 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-04-2022
• Assessment Year: misc
• Other Referred Cases: Ashok Kumar Agarwal vs. Union of India, BPIP Infra (P.) Ltd. vs. Income Tax Officer, Ward 4(1), Jaipur, Mon Mohan Kohli vs. Assistant Commissioner of Income Tax & Anr., Tata Communications Transformation Services Limited vs. Assistant Commissioner of Income Tax 14(1) and Others
• Laws Referred To: Income Tax Act, 1961, Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND; DILIP M
• Assessee Lawyers: ALOKE MADAPPA
• Keywords: Income Tax; Re-assessment proceedings; Ultra Vires; Writ of Certiorari
• Section: 147; 148; 143(2)

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF APRIL 2022 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR.JUSTICE S. VISHWAJITH SHETTY W.P. No.22721 OF 2021 (T-IT) BETWEEN: APRANJE JEWELLERS PVT. LTD. NO.66, LAVELLE ROAD BENGALURU 560 001 REP BY ITS DIRECTOR SRI SANJEEV M. MEHTA. ... PETITIONER (BY MR. ALOKE MADAPPA, ADV.,) AND: 1. PRINCIPAL COMMISSIONER OF INCOME-TAX-1 BANGALORE BMTC BUILDING 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU 560 095. 2. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1)(1), BENGALURU BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU. 3. CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE MINISTRY OF FINANCE 2 UNION OF INDIA NORTH BLOCK NEW DELHI 110 002 REP HEREIN ITS CHAIRPERSON. ... RESPONDENTS (BY MR. K.V. ARAVIND A/W MR. DILIP M, ADVS.,) - - - THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT / ORDER / DIRECTION QUASHING THE IMPUGNED NOTICE DATED 30.06.2021 IN NOTICE NO. ITBA / AST / S/148/2021- 22/1033890578 (1) ISSUED UNDER SECTION 148 OF THE INCOME - TAX ACT, 1961 BY THE 2ND RESPONDENT WHEREBY THE 2ND RESPONDENT IS SEEKING TO INTITATE RE-ASSESSMENT PROCEEDINGS UNDER SECTION 147 OF THE ACT, 1961, FOR THE ASSESSMENT YEAR 2016-17 AND ALLOW THE SAID RELIEF AND TENDER JUSTICE (ANNEXURE -A). CONSEQUENTLY, ISSUE A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT / ORDER / DIRECTION QUASHING THE IMPUGNED NOTICE DATED 20.11.2021 BEARING NO. DIN - ITBA / AST / F / 143 (2)-4/2021-22/1037085173(1) ISSUED BY THE 2ND RESPONDENT UNDER SECTION 143 (2) READ WITH SECTION 147 OF THE INCOME TAX ACT, 1961 AND ALLOW THE SAID RELIEF AND RENDER JUSTICE ( ANNEXURE - B) & ETC. THIS W.P. COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ALOK ARADHE J., MADE THE FOLLOWING: ORDER The petitioner in this writ petition has sought quashment of explanation below Clause (A) in the notification bearing No.20/2021 3 F.NO.370142/35/2020-TPL dated 31.03.2021 and notification No.38/2021/F.No.370142/35/2020-TPL dated 27.04.2021 issued by Central Board of Direct Taxes, as ultra vires the provisions of Income Tax Act, 1961 (hereinafter referred to as ‘1961 Act’ for short) and the provisions of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (hereinafter referred to as ‘2020 Act’ for short). The petitioner has also prayed for relief that extension of time limit by the 2020 Act does not apply to notices issued under erstwhile Section 148 of the 1961 Act, after 01.04.2021. The petitioner also seeks a writ of certiorari for quashing the notices dated 30.06.2021 issued under Section 148 of the 1961 Act for the Assessment year 2016-17. 2. We have heard the learned counsel at length. For the reasons assigned by us in the judgment dated 19.04.2022 passed in 4 W.P.No.22348/2021 and for the reasons assigned by division bench of High Court of Allahabad in ASHOK KUAR AGARWAL VS. UNION OF INDIA’, Rajasthan High Court in ‘BPIP INFRA (P.) LTD. VS. INCOME TAX OFFICER, WARD 4(1), JAIPUR, Delhi High Court decision in MON MOHAN KOHLI VS. ASSISTANT COMMISSIONER OF INCOME TAX & ANR. And decision of Bombay High Court in TATA COMMUNICATIONS TRANSFORMATION SERVICES LIMITED, VS. ASSISTANT COMMISSIONER OF INCOME TAX 14(1) AND OTHERS, W.P.NO.1334/2021 the explanation below Clause (A) in the notification bearing No.20/2021 F.NO.370142/35/2020-TPL dated 31.03.2021 and notification No.38/2021 F.No.370142/35/2020-TPL dated 27.04.2021 issued by Central Board of Direct Taxes is hereby declared as ultra vires the provisions of Income Tax Act, 1961 and the provisions of 5 Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The impugned notice dated 30.06.2021 issued under Section 148 of the Act is quashed. 3. However, it will be open to the Assessing Officer concerned to initiate fresh re-assessment proceeding in accordance with relevant provisions of the 1961 Act as amended by Finance Act, 2021 after strictly complying with the provisions of the Act. In the result, the writ petition is disposed of. Sd/- JUDGE Sd/- JUDGE SS "