M/S ANANT RICE INDUSTRIES V. UNION OF INDIA

WA/377/2021

AI Insights

The case involves M/s. Anand Rice Industries, a partnership firm, appealing against the Union of India and other respondents concerning income tax notices. The appeal was heard by the High Court of Chhattisgarh, which decided to dispose of the case by aligning with a precedent set by the Supreme Court in the case of Union of India & Others v. Ashish Agrawal. The Supreme Court had addressed the validity of section 148 notices issued under the unamended IT Act, which were challenged in various High Courts. The Supreme Court's judgment provided a framework for how these notices should be treated under the amended section 148A, ensuring that assessees are given a fair opportunity to respond with the necessary information provided by the assessing officers.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 732001 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 28-07-2022
• Assessment Year: misc
• Other Referred Cases: Union of India & Others v. Ashish Agrawal
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: TUSHAR DIWAN; AJAY KUMRANI
• Assessee Lawyers: MAYANK CHANDRAKAR
• Keywords: Income Tax; Show cause notices; Supreme Court judgment; Writ Appeal
• Section: 148; 148A

Judgement Text

"1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR Writ Appeal No. 377 of 2021 M/s. Anand Rice Industries, a partnership firm through - partner Vinay Kumar Agrawal, S/o Shri Shrawan Agrawal, aged about 38 years, Arang Main Road, District Raipur (C.G.) ---- Appellant Versus 1. Union of India Through - Secretary Ministry of Finance, North Block, New Delhi, 110001. 2. Assistant Commissioner of Income Tax (Central)-2, Ayakar Bhawan, Civil Lines, Raipur, District Raipur (C.G.) 2. Income Tax Officer Ward 1(2), Office at - Commissioner of Income Tax, Civil Lines, Raipur, District Raipur (C.G.) ---- Respondents (Cause-title taken from Case Information System) For Appellant : Mr. Mayank Chandrakar, Advocate. For Respondent No. 1 : Mr. Tushar Dhar Diwan, Central Government Counsel. For Respondents No. 2 & 3 : Mr. Ajay Kumrani, Advocate. Hon'ble Shri Arup Kumar Goswami, Chief Justice Hon'ble Shri Justice Parth Prateem Sahu, Judge Judgment on Board Per Arup Kumar Goswami, Chief Justice 28.07.2022 Heard Mr. Mayank Chandrakar, learned counsel for the appellant. Also heard Mr. Tushar Dhar Diwan, learned Central Government counsel, appearing for respondent No. 1 and Mr. Ajay Kumrani, learned counsel, appearing for respondents No. 2 & 3. 2 2. Learned counsel for the parties submitted that this writ appeal may be disposed of in terms of the order passed in Writ Appeal No. 277 of 2021 and batch, which was disposed of on 10.05.2022 following the judgment of the Hon’ble Supreme Court in Union of India & Others v. Ashish Agrawal, reported in (2022) SCC Online SC 543. 3. In the order dated 10.05.2022, it was observed as follows : “5. The Hon’ble Supreme Court disposed of the aforesaid case as follows : “26. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgment and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:- (i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of section 148A(b). The assessing officer shall, within 3 thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show- cause notices within two weeks thereafter; (ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a one-time measure vis-a-vis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required; (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under Section 148A may issue notice under section 148 (as substituted); 4 (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assesses and Revenue under the Finance Act, 2021 and in law shall continue to be available. 27. 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. 28. The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by various 5 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. 29. All these appeals are accordingly partly allowed to the aforesaid extent. 30. In the facts of the case, there shall be no order as to costs.” 6. In view of the decision of the Hon’ble Supreme Court, no hearing is required and therefore, this present writ appeal is disposed of in terms of the judgment rendered in Union of India & Others v. Ashish Agrawal. I.A. No. 2 of 2022 is also disposed of.” 4. Having regard to the submissions of the learned counsel for the parties, the present writ appeal is disposed of in terms of the judgment rendered in Union of India & Others v. Ashish Agrawal. Sd/- Sd/- (Arup Kumar Goswami) (Parth Prateem Sahu) Chief Justice Judge Brijmohan "