LATE SRI PUTTAMADAIAH V. INCOME TAX OFFICER

WP/13619/2021

AI Insights

The case involves a writ petition filed by the legal representative of Late Sri. Puttamadaiah, challenging the validity of notices issued under Section 148 of the Income Tax Act, 1961 for the Assessment year 2015-16. The petitioner argued that the notifications extending the time limit for issuing such notices were ultra vires the Income Tax Act and the 2020 Act. The court referenced several precedents and found in favor of the petitioner, quashing the impugned notice and declaring the notifications as beyond the legal authority provided by the Income Tax Act and the 2020 Act.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 754152 (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 4 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: SHREEHARI
• Keywords: Quash notice; Re-assessment proceeding; Ultra Vires
• 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.13619 OF 2021 (T-IT) BETWEEN: LATE SRI. PUTTAMADAIAH AGED 45 YEARS REP. BY L.R. SRI. LOKESH NO.168, KUDUREGERE VILALGE ALUR POST BENGALURU NORTH TALUK BENGALURU 560 162. ... PETITIONER (BY MR. SHREEHARI, ADV.,) AND: INCOME TAX OFFICER WARD 1(2)(1) BMTC BUIDLING 80FT ROAD, 6TH BLOCK KORAMANGALA BENGALURU 560 095. ... RESPONDENT (BY MR. K.V. ARAVIND A/W MR. DILIPM, ADVS.,) - - - THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 DTD 29.06.2021 ISSUED BY THE RESPONDENT FOR THE ASSESSMENT 2 YEAR 2015-16 VIDE ANNX-A.. GRANT AN INTERIM ORDER TO STAY THE OPERATION OF THE NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 DTD 29.06.2021 ISSUED BY THE RESPONDENT FOR THE ASSESSMENT YEAR 2015-16 VIDE ANNX- A. VIDE COURT ORDER DTD 05.07.2021 PASSED IN WP NO.7338/2020 OFFICE OBJECTIONS RAISED IN THIS WRIT PETITION ARE WAIVED OFF. THIS W.P. COMING ON FOR ORDERS, 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 (hereinafter referred to as ‘2020 Act’ for short). The petitioner has also prayed for relief that 3 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 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. 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 4 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 29.06.2021 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. 5 In the result, the writ petition is disposed of. Sd/- JUDGE Sd/- JUDGE SS "