RAMESH KEDIA V. UNION OF INDIA

WPT/239/2021

AI Insights

The case involves Ramesh Kedia, the petitioner, against multiple respondents including the Union of India and various tax authorities, concerning the issuance of notices under section 148 of the IT Act. The core issue revolved around the validity and procedural adherence of these notices, which were challenged in light of the Supreme Court's ruling in Union of India & Others v. Ashish Agarwal. The Supreme Court's judgment provided a framework for handling such notices, emphasizing the need for transparency and the right of assessees to respond adequately. The High Court of Chhattisgarh, following the Supreme Court's directive, disposed of the writ petition accordingly.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 724415 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 21-07-2022
• Assessment Year: misc
• Other Referred Cases: Union of India & Others v. Ashish Agarwal
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ANMOL SHARMA; AJAY KUMRANI
• Assessee Lawyers: ANAND DADARIYA
• Keywords: Finance Act 2021; Income Tax; Show cause notice; Supreme Court judgment
• Section: 148; 148A

Judgement Text

"1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR WPT No. 239 of 2021 Ramesh Kedia S/o Shri Bishwanath Kedia, Aged About 61 Years R/o B- 601, Karsan Estate, Fafadih, Raipur Chhattisgarh 492001, District : Raipur, Chhattisgarh ---- Petitioner Versus 1. Union of India Through The Ld. Secretary Ministry Of Finance (Department Of Revenue) No. 137, North Block, New Delhi 110001, District : New Delhi, Delhi 2. Union of India The Ld. Secretary Minister Of Law And Justice (Legislative Department) 4th Floor, A- Wing, Rajendra Prasad Road, Shastri Bhavan, New Delhi- 110001, District : New Delhi, Delhi 3. Central Board Of Direct Tax Through Its Ld. Chairman Ministry of Finance (Department Of Revenue) North Block, New Delhi- 110002, District : New Delhi, Delhi 4. The Additional Commissioner Of Income Tax- Range-1, Aaykar Bhawan, Civil Lines, Raipur Chhattisgarh, District : Raipur, Chhattisgarh 5. Income Tax Officer, Ward 3(1) Aaykar Bhawan, Civil Lines, Raipur (Chhattisgarh), District : Raipur, Chhattisgarh ---- Respondents (Cause Title taken from Case Information System) 2 For Petitioner : Mr. Anand Dadariya, Advocate. For Respondents No. 1 & 2 : Ms. Anmol Sharma, Central Government Counsel For Respondents No. 3 to 5 : Mr. Ajay Kumrani, Advocate. Hon'ble Mr. Arup Kumar Goswami, Chief Justice Hon'ble Mr. Parth Prateem Sahu, Judge Order on Board Per Arup Kumar Goswami, Chief Justice 21/07/2022 Heard Mr. Anand Dadariya, learned counsel, appearing for the petitioner. Also heard Ms. Anmol Sharma, learned Central Government counsel, appearing for the respondents No. 1 and 2 as well as Mr. Ajay Kumrani, learned counsel, appearing for the respondents No. 3 to 5. 2. It is submitted by learned counsel appearing for the parties that this matter is squarely covered by the judgment dated 10.05.2022 passed by this Court in WA No. 277/2021 and batch, which, in turn, was based on the judgment of the Hon’ble Supreme Court, rendered in the case of Union of India & Others v. Ashish Agarwal, reported in (2022) SCC Online SC 543. 3. 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 3 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 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 4 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); (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 5 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 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.” 4. In view of the decision of the Hon’ble Supreme Court, this writ petition is disposed of in terms of the judgment rendered in Union of India & Others (supra). Sd/- Sd/- (Arup Kumar Goswami) (Parth Prateem Sahu) CHIEF JUSTICE JUDGE Amit "