Simsang Lime Products Private Limited V. The Union of India and National Faceless Assessment Centre Delhi and Principal Commissioner of Income Tax Guwahati-01 and Income Tax Officer W-2(1)

WP(C)/1573/2022

AI Insights

Simsang Lime Products Private Limited, represented by its director, Sambhu Kumar Dhanuka, filed a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961. The notice was contested on the grounds that it should be governed by the provisions of Section 148A, introduced by the Finance Act, 2021, which provides a more detailed procedure for reassessment. The Supreme Court had previously addressed similar issues in Civil Appeal No. 3005/2022, modifying the approach to such notices. The Gauhati High Court, referencing this Supreme Court judgment, closed the writ petition, directing that the notice be treated under the amended provisions.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 817385 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 11-05-2022
• Assessment Year: misc
• Other Referred Cases: Civil Appeal No. 3005/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: S G I
• Assessee Lawyers: P AGARWAL
• Keywords: Income Tax; Notice; Section 148; Section 148A; Supreme Court judgment
• Section: 148; 148A

Judgement Text

"Page No.# 1/3 GAHC010039282022 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/1573/2022 SIMSANG LIME PRODUCTS PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 2013, HAVING ITS OFFICE AT 6TH FLOOR TRADE HOUSE, SRCB ROAD FANCY BAZAR GUWAHATI-01, ASSAM, INDIA, AND REP. BY SAMBHU KUMAR DHANUKA, THE DIRECTOR OF THE PETITIONER COMPANY VERSUS THE UNION OF INDIA AND 3 ORS REP BY THE SECRETARY , MINISTRY OF FINANCE , NORTH BLOCK, NEW DELHI-110001 2:NATIONAL FACELESS ASSESSMENT CENTRE DELHI REP. BY THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX 2ND FLOOR JAWAHAR LAL NEHRU STADIUM NEW DELHI-03 3:PRINCIPAL COMMISSIONER OF INCOME TAX GUWAHATI-01 AAYAKAR BHAWAN GS ROAD GUWAHATI-05 ASSAM 4:INCOME TAX OFFICER W-2(1) AAYAKAR BHAWAN GS ROAD GUWAHATI-05 ASSA Page No.# 2/3 Advocate for the Petitioner : MS P AGARWAL Advocate for the Respondent : ASSTT.S.G.I. BEFORE HONOURABLE MR. JUSTICE ACHINTYA MALLA BUJOR BARUA ORDER Date : 11-05-2022 Heard Mr. Arun Jain, learned counsel for the petitioner. Also heard Mr. K Gogoi, learned CGC for the Income Tax Department. 2. The issue involved in this writ petition under which notice under Section 148 of the Income Tax Act, 1961 issued to the petitioner would also entail the petitioner the benefits of Section 148A. 3. The issue has already been settled by the Supreme Court in Civil Appeal No. 3005/2022 and other similar Civil Appeals by the judgment dated 04.05.2022. 4. In paragraphs 10 and 11 of the said judgment, it has been provided as extracted: “10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments 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 assesses 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 to provide to the respective assessees information and material relied upon by the Revenue, so that the assesses 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-à-vis those notices which have been issued under Page No.# 3/3 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 assesses; 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. 11. The present order shall be applicable PAN INDIA and all judgements and orders passed by different High Courts on the issue and under which similar notices which were 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 judgements 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.” 5. Accordingly, the claim of the petitioner in respect of the impugned notice under Section 148 shall now be covered by the provisions laid down by the Supreme Court in paragraphs 10 and 11 of the judgment dated 04.05.2022. 6. Writ petition stands closed by observing as above. JUDGE Comparing Assistant "