SBMS Concrete rep. by its partner Sri. Belle Sivaiah V. The Assistant Commissioner of Income Tax Central Circle 1(2) and Central Board of Direct Taxes through the Chairperson

WP/3900/2022

AI Insights

The case involves SBMS Concrete, represented by its partner Sri. Belle Sivaiah, challenging the validity of notices issued under Section 148 of the Income Tax Act, 1961, and certain notifications by the Central Board of Direct Taxes (CBDT). The petitioner argued that the notifications extending the time limit for issuing notices were not applicable to notices issued under the erstwhile Section 148 after 01.04.2021. The High Court of Karnataka, referencing decisions from other High Courts, agreed with the petitioner, declaring the notifications as ultra vires and quashing the notices. The court allowed for the possibility of fresh reassessment under the amended provisions of the Income Tax Act.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 689952 (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 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: A SHANKAR
• Keywords: Assessment Year 2017-18; Income Tax Act; Notice Quashment; Ultra Vires; Writ of Certiorari
• 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.3900 OF 2022 (T-IT) BETWEEN: SBMS CONCRETE REP. BY ITS PARTNER SRI. BELLE SIVAIAH S/O SRI. YERAPPA AGED ABOUT 44 YEARS SY. NO.68, BUDIGERE MAIN ROAD HANCHARAHALLI VILLAGE, MANDUR BRDARAHALLI VILLAGE BENGALURU-560049. ... PETITIONER (BY MR. A. SHANKAR, SR. COUNSEL FOR MR. S. ANNAMALAI, ADV.,) AND: 1. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(2) C R BUILDING QUEENS ROAD BANGALORE-560001. 2. CENTRAL BOARD OF DIRECT TAXES THROUGH THE CHAIRPERSON DEPARTMENT OF REVENUE 2 MINISTRY OF FINANCE NORTH BLOCK, NEW DELHI-110001. ... RESPONDENTS (BY MR. K.V. ARAVIND A/W MR. DILIP M, ADVS.,) - - - THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF CERTIORARI AND DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE ISSUED UNDER SECTION 148 OF THE INCOME TAX ACT 1961 DATED 23.04.2021 BEARING DIN AND NOTICE No.ITBA/AST/S/148/2021 BEARING DIN AN NOTICE No.ITBA/AST/S/148/2021-22/1032628083(1) FOR THE ASSESSMENT YEAR 2017-18 HERE IN MARKED AS ANNEXURE-A. DECLARE THAT THE EXPLANATION BELOW CLAUSE (A) IN THE NOTIFICATION BEARING No.20/2021/F.No.370142/35/2020-TPL DATED 31.03.2021 HEREIN MARKED AS ANNEXURE-B AND No.38/2021-/F.No.370142/35/2020-TPL DATED 27.04.2021 HERE IN MARKED AS ANNEXURE-C ISSUED BY THE RESPONDENT No-2 IS ULTRA VIRES THE PROVISIONS OF THE INCOME TAX ACT 1961 AND THE PROVISIONS OF THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISONS) ACT 2020 AND THUS BAD IN LAW & ETC., THIS W.P. COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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 3 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 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 23.04.2021 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 4 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 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.20/2021370142/35/2020-tl dated 31.03.2021 and notification No.38/2021f. 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 5 and Amendment of Certain Provisions) Act, 2020. The impugned notice dated 23.04.2021 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. In the result, the writ petition is disposed of. Sd/- JUDGE Sd/- JUDGE SS "