Smt. Kiran Bajaj V. Assistant Commissioner of Income Tax Circle 1(1)(1) and Additional/Joint/Deputy/Assistant Commissioner of Income Tax, National Faceless Assessment Centre and Central Board of Direct Taxes

WP/2326/2022

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The case involves Smt. Kiran Bajaj, who filed a writ petition against the Assistant Commissioner of Income Tax and others, challenging the legality of a notice issued under Section 148 of the Income Tax Act, 1961, and certain notifications by the Central Board of Direct Taxes. The petitioner argued that the notice and the notifications were not in compliance with the Income Tax Act, 1961, and the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The court, referencing several precedents, found in favor of the petitioner, quashing the notice and the notifications, but permitted the initiation of new reassessment proceedings under the amended Act.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 689796 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 20-04-2022
• 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: ASHOK KULAKARNI
• Keywords: Income Tax Act; Notice; Quashment; Re-assessment; Ultra Vires; Writ petition; Taxation and Other Laws
• Section: 148

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF APRIL, 2022 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY W.P.No.2326/2022 (T-IT) BETWEEN: SMT. KIRAN BAJAJ AGED ABOUT 53 YEARS, C/O AVON PLASTIC INDSUTRIES PVT. LTD. NO 53, BOMMASANDRA JIGANI LINK ROAD, ANEKAL TQ, BENGALURU 562106, KARNATAKA. … PETITIONER (By Sri Ashok A. Kulakarni, Adv.) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1)(1) BMTC BUILIDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU 560095, KARNATAKA. 2. ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTRE NEW DELHI 110001. 3. CENTRAL BOARD OF DIRECT TAXES DEPT. OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI 110001 REP. BY ITS SECRETARY. … RESPONDENTS 2 (By Sri K.V.Aravind a/w Sri Dilip.M., Adv.’s) This writ petition is filed under Articles 226 and 227 of the Constitution of India praying to quash by an order, writ or direction in the nature of certiorari the notice u/s 148 bearing DIN and notice number ITBA/AST/S/148/2021- 22/1033847072(1), dated 29/06/2021 in Annexure-A issued by the respondent no.1 as unlawful and illegal along with the attendant actions, etc. This petition 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 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 3 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 notice dated 29.06.2021 issued under Section 148 of the 1961 Act for the Assessment year 2014-15. 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 the 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 4 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 and Amendment of Certain Provisions) Act, 2020. The impugned notice dated 29.06.2021 issued under Section 148 of the Act are 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 KK "