BYNDOOR VYAVASAYA SEVA V. INCOME TAX OFFICER

WP/21412/2021

AI Insights

The case involves the Byndoor Vyavasaya Seva Sahakari Sangha Ltd., represented by its CEO Mr. Chandra Moger, challenging the validity of re-assessment notices issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961. The petitioner argued that the notices were issued in violation of the Income Tax Act and the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The High Court of Karnataka, referencing decisions from other High Courts and its own previous judgment, found the notices to be ultra vires and quashed them, while allowing for the possibility of new proceedings if conducted in accordance with the law.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 754141 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-04-2022
• 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; DILIP M
• Assessee Lawyers: MAHESH UPPIN
• Keywords: Certiorari; Certiorari; Re-assessment notice; Ultra Vires; Writ petition
• Section: 148

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.21412 OF 2021 (T-IT) BETWEEN: BYNDOOR VYAVASAYA SEVA SAHAKARI SANGHA LTD., YEDTHARE, BYNDOOR BYNDOOR TALUK UDUPI DISTRICT-576 214 REP BY ITS C.E.O. MR. CHANDRA MOGER. ... PETITIONER (BY MR. MAHESH R. UPPIN, ADV.,) AND: 1. INCOME TAX OFFICER WARD-2, AAYAKAR BHAVAN ADI-UDUPI, MALPE ROAD AMBALPADY POST UDUPI-576 103. 2. INCOME TAX OFFICER WARD-1 AND TPS, AAYAKAR BHAVAN ADI-UDUPI, MALPE ROAD AMBALPADY POST UDUPI-576103. 3. CENTRAL BOARD OF DIRECT TAXES BY ITS SECRETARY NORTH BLOCK 2 SECRETARIAT BUILDING NEW DELHI-110002. ... RESPONDENTS (BY MR. K.V. ARAVIND A/W MR. DILIP M, ADVS., FOR R1-R3) - - - THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE RE- ASSESSMENT NOTICE DATED 16.04.2021 BEARING DIN NO.ITBA/AST/S/148/2021-22/1032455980(1) ISSUED BY THE 2ND RESPONDENT MARKED AS ANNEXURE-B BY ISSUING A WRIT IN THE NATURE OF CERTIORARY. QUASH THE NOTICE DATED 18.08.2021 BEARING DIN NO.ITBA/AST/S/142(1)/2021- 22/10345954661(1) ISSUED BY THE 2ND RESPONDENT MARKED AS ANENXURE-C BY ISSUING A WRIT IN THE NATURE OF CERTIORARY & 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 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, 3 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 16.04.2021 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 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. 4 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 Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The impugned notice dated 16.04.2021 issued under Section 148 of the Act is quashed. 5 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 "