GURPRIT SINGH CHAWLA V. DCIT, CIRCLE 1(1), SAMBALPUR

WP(C)/7882/2022

AI Insights

The case involves a writ petition filed by Gurprit Singh Chawla challenging a notice issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961. The notice was issued for the Assessment Year 2016-17 on 30th March 2021, just before the new provisions under the Finance Act 2021 came into effect on 1st April 2021. The Supreme Court had recently ruled on similar issues, setting aside notices issued after the amendment date to avoid further litigation on this matter. The High Court of Orissa, referencing the Supreme Court's decision and its own previous rulings, quashed the notice against Chawla, thereby disposing of the writ petition in his favor.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 746387 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 17-05-2022
• Assessment Year: misc
• Other Referred Cases: Union of India & others v. Ashish Agarwal
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S S MOHAPATRA
• Assessee Lawyers: K R CHOUDHURY
• Keywords: Finance Act 2021; High Court; Income Tax Department; Notice quashed; Section 148; Supreme Court
• Section: 147; 148; 151

Judgement Text

" Page 1 of 3 IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.7882 of 2022 Gurprit Singh Chawla …. Petitioner Ms. K.R. Choudhury, Advocate -versus- DCIT, Circle1 (1), Sambalpur and another …. Opposite Parties Mr. S.S. Mohapatra, Senior Standing Counsel CORAM: THE CHIEF JUSTICE JUSTICE R.K. PATTANAIK Order No. ORDER 17.05.2022 01. 1. This matter is taken up by a separate notice. 2. The Court has been shown the Judgment dated 4th May 2022, passed by the Supreme Court of India in Civil Appeal No.3005 of 2022 and batch (Union of India & others v. Ashish Agarwal), where the issue taken up for consideration was the correctness of the orders passed by the High Courts of Delhi, Rajasthan, Calcutta, Madras and Bombay on the question of the validity of notices issued by the Income Tax Department (Department) under Section 148 of the Income Tax Act, 1961 (Act) in light of the amendment by the Finance Act 2021, which introduced the new amended provisions i.e., Sections 147 to 151 with effect from 1st April, 2021. 3. On reading the entire Judgment, it becomes clear that the Supreme Court only partly allowed the appeals of the Union of India and made a distinction between notices issued by the Page 2 of 3 Department on or after 1st April, 2021 and those that have been issued prior thereto. As regards the notices issued after 1st April 2021, the Supreme Court has in its operative portion held as under: “11. The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 01.04.2021 issued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending before various High Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge.” 4. Consequently, the Supreme Court has in Para-12 ordered as under” “12. The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by various High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/ substituted to the aforesaid extent only.” 5. In the present case, the notice under Section 148 of the Act pertaining to the Assessment Year (AY) 2016-17 was issued on 30th March 2021, i.e., prior to 1st April 2021. Consequently, both in Page 3 of 3 light of the Judgment of the Supreme Court in Union of India & others v. Ashish Agarwal (supra) and the Order of this Court dated 24th January 2022 in W.P.(C) No.20919 of 2021 and batch of writ petitions in M/s. Ambika Iron and Steel Pvt. Ltd. and others v. Principal Commissioner of Income Tax and others, the impugned notice is hereby quashed and all the subsequent orders and proceedings are also hereby quashed. 6. The writ petition is disposed of in the above terms. 7. Urgent certified copy of this order be issued as per rules. (Dr. S. Muralidhar) Chief Justice (R.K. Pattanaik) Judge S. K. Guin "