Mohd. Abad Husain V. Union Of India. Thru. Its Secy.(Revenue), Ministry Of Finance Govt Of Ind. New Delhi And 4 Others

/230/2024

AI Insights

The case involves Mohd. Abad Husain, the petitioner, who filed a writ petition against the Union of India and others, challenging a show cause notice issued under Section 221(1) of the Income Tax Act, 1961 for the assessment year 2016-17. The petitioner argued that the Jurisdictional Assessing Officer lacked the authority to issue the notice post the enactment of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. However, it was acknowledged that no specific notification under Section 231, which includes Section 221, had been issued to restrict the officer's jurisdiction. The petitioner also raised issues related to the Double Taxation Avoidance Agreement and relevant notifications, claiming coverage under these provisions as a salaried employee in Saudi Arabia. The court decided not to delve deeply into these submissions at this stage, given the jurisdictional validity of the notice and allowed the petitioner to submit an additional reply online, which the assessing officer is required to consider.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 814817 (HC-LUCKNOW)
• Appeal Type: Others
• Pronouncement Date: 18-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, Double Taxation Avoidance Agreement, Faceless Jurisdiction of Income Tax Authorities Scheme, 2022
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A S G I; KUSHAGRA DIKSHIT
• Assessee Lawyers: MANISH MISRA; DILEEP PANDEY; MOHD KHAN
• Keywords: Certiorari; Certiorari; Double Taxation Avoidance; Jurisdiction; Mandamus; Salaried employee; Show cause notice; Saudi Arabia
• Section: 221(1); 231

Judgement Text

"Neutral Citation No. - 2024:AHC-LKO:64269-DB Court No. - 3 Case :- WRIT TAX No. - 230 of 2024 Petitioner :- Mohd. Abad Husain Respondent :- Union Of India. Thru. Its Secy.(Revenue), Ministry Of Finance Govt Of Ind. New Delhi And 4 Others Counsel for Petitioner :- Manish Misra,Dileep Pandey,Mohd Kamal Khan Counsel for Respondent :- A.S.G.I.,Kushagra Dikshit Hon'ble Mrs. Sangeeta Chandra,J. Hon'ble Brij Raj Singh,J. 1. Heard Shri Manish Misra, learned counsel for the petitioner, learned Counsel for Union of India and Shri Neerav Chitravanshi, learned counsel for opposite party nos.2 to 5. 2. This writ petition has been filed with the following main prayers:- \"(i) to, issue a writ order or direction in the nature of certiorari to quash the impugned notice dated 18.7.2024 passed U/s 221(1) of the Income Tax Act, 1961 for the assessment year 2016-17. (Annexure No.1). (ii) to, issue a writ order or direction in the nature of Mandamus commanding the opposite to not harass the petitioner and compel him to deposit the demand till the final disposal of statutory appeal filed by the petitioner before the appellate authority.\" 3. A preliminary objection has been raised by learned counsel for opposite parties that the petitioner has approached this Court only against the show cause notice dated 18.07.2024. He has appropriate remedy of filing his reply before the assessing officer, which shall be considered and appropriate order shall be passed. 4. Learned counsel for the petitioner had initially stated before this Court that the Jurisdictional Assessing Officer has no jurisdiction to issue such show cause notice after the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 in which it is provided for assessment and a show cause notice could not have been issued by the Jurisdictional Assessing Officer, however he has fairly stated today before this Court that no notification has been issued insofar as Section 231 of the Income Tax Act, 1961, which includes Section 221 of the Income Tax Act, 1961, is concerned, therefore, the notice that has been issued to the petitioner cannot be said to be without jurisdiction. 5. Learned counsel for the petitioner has raised several other points relating to Double Taxation Avoidance Agreement and notification issued in this regard, namely, Notification no.287/2006 dated 17.10.2006 and he states that since the petitioner is a salaried employee in Saudi Arabia, he is covered by such notification. 6. He has also referred to the Central Board of Direct Taxes circulars, S.O. 1400(E), which has been issued relating to Faceless Jurisdiction of Income Tax Authorities Scheme, 2022, however, we consider it inappropriate to delve into the submissions made by learned counsel for the petitioner at this stage as it is not disputed that the show cause notice which has been issued to the petitioner is within jurisdiction. 7. The petitioner has already submitted his reply to the show cause notice on 24.08.2024 and no final orders have been passed till date. He prays that he may be permitted to file an additional reply before the officer concerned. 8. It has been pointed out by learned counsel for the petitioner Shri Manish Misra that all proceedings that are undertaken for assessment/ reassessment are online and unless the authorities open the portal and permit such additional reply to be filed by relying on the Double Taxation Avoidance Agreement, the petitioner cannot upload his additional reply. 9. In view of the above, it is directed that the assessment officer shall open the portal for a period of one week, that is, upto 25.09.2024 to enable the petitioner to submit his additional reply. 10. The writ petition is disposed of with the liberty to the petitioner to file an additional reply relating to the double taxation avoidance agreement entered into between the Government of India and Kingdom of Saudi Arabia, within a period of one week from today. All his contentions, as raised in this reply, shall be considered by the appropriate officer and a reasoned and speaking order shall be passed within a period of four weeks from the date such additional reply is received by the assessing officer. (Brij Raj Singh, J.)(Mrs. Sangeeta Chandra, J.) Order Date :- 18.9.2024 Arnima Digitally signed by :- ARNIMA SINGH High Court of Judicature at Allahabad, Lucknow Bench "