M/S B AND B TRIPLEWALL CONTAINERS LIMITED V. ASSISTANT COMMISSIONER OF INCOME TAX

WP/3827/2022

AI Insights

The case involves M/s. B and B Triplewall Containers Limited, represented by its director Shri Manish Kumar Gupta, who filed a writ petition under Articles 226 and 227 of the Constitution of India against the Assistant Commissioner of Income Tax and other respondents. The petitioner sought to quash notices issued under Section 148 of the Income Tax Act, 1961, claiming they were unlawful and illegal. The court's decision was influenced by precedents from various High Courts, which led to the conclusion that the notifications in question were beyond the legal authority of the Central Board of Direct Taxes. The court's ruling allows for the possibility of new reassessment proceedings, provided they comply with the amended legal framework.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 754095 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-04-2022
• Assessment Year: misc
• Other Referred Cases: ASHOK KUAR 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
• Assessee Lawyers: ASHOK KULAKARNI
• Keywords: Certiorari; Certiorari; Income Tax; Notices; Quashment; Taxation and Other Laws; Ultra Vires; Writ petition
• Section: 148

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF APRIL, 2022 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY W.P.No.3827/2022 (T-IT) BETWEEN: M/S. B AND B TRIPLEWALL CONTAINERS LIMITED SURVEY NO. 263/2/3, KASABA HOBLI MARSUR MADIWAL VILLAGE ANEKAL TALUK, BENGALURU KARNTAKA 562106. REPRESENTED BY ITS DIRECTOR SHRI MANISH KUMAR GUPTA. … PETITIONER (By Sri Ashok A. Kulakarni, Adv.) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1) (1) BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU 560095. KARNATAKA. 2. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX NATIONAL FACELESS ASSESSMENT CENTRE NEW DELHI 110001. 3. CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE 2 MINISTRY OF FINANCE, NORTH BLOCK NEW DELHI 110001, REPRESENTED BY ITS SECRETARY. … RESPONDENTS (By Sri K.V.Aravind a/w Sri Dilip.M., Adv.’s) This writ petition is filed under Articles 226 and 227 of the Constitution of India, praying to quash by an order, writ or direction in the nature of certiorari the notices u/s 148 issued by the respondent no.1 bearing the following numbers, dates and enclosure in the Annexures, as unlawful and illegal along with the attendant actions, etc. This petition 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/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 3 (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 29.06.2021 issued under Section 148 of the 1961 Act for the Assessment years 2013-14, 2014-15 & 2015-16. 2. We have heard the learned counsel at length. For the reasons assigned by us in the judgment dated 19.04.2022 passed in W.P.No.22348/2021 and for the reasons assigned by the 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 4 No.20/2021370142/35/2020-tl dated 31.03.2021 and notification No.38/2021f. 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 Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The impugned notices dated 29.06.2021 issued under Section 148 of the Act are 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 KK "