Smt. Geetha Rani Gandra V. UNION OF INDIA

WP/20531/2021

AI Insights

The case involves multiple writ petitions challenging the legality and validity of notices issued under Section 148 of the Income Tax Act, 1961, for reassessment of income for various assessment years. The petitions argued that these notices were issued without following the procedural requirements laid down by the recently amended Section 148A, which came into effect on 01.04.2021. The Supreme Court, in its judgment, acknowledged the procedural lapses due to a bona fide mistake and allowed the reassessment proceedings to continue under the substituted provisions, emphasizing the need to balance the rights of the assessees with the public interest in tax collection.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 733978 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 13-06-2022
• Assessment Year: misc
• Other Referred Cases: Union of India vs. Ashish Agarwal
• Laws Referred To: Income Tax Act 1961, Constitution of India
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: NAMAVARAPU RAO; K REDDY; A RADHA KRISHNA
• Assessee Lawyers: A V RAM; C V NARASIMHAM; T KUMAR; M DEEPAK
• Keywords: Assessment Year; Barred by limitation; Income Tax; Reassessment; Ultra Vires; Without jurisdiction; Writ of Certiorari; Writ of Mandamus
• Section: 148; 149; 151; 148A; 226

Judgement Text

"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (SPecial Original Jurisdiction) IMONDAY ,THE THIRTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE MRS JUSTICE SUREPALLI NANDA WRIT PETITION NOS: 20529 2053'l 20581 20655 29015 29122 AND 29532 0F 202't AND 8245 & 6244 0F 2022 WP No: 20529 ol 2021: Between: Sri Mohan Rao Gandra, S/o. Sri G.Raghavendra Rao, Rl/o. Villa No.54A, Ektha Prime Highland Park, Financial District, Nanakramguda, Gachibowli, Hyderabad- 500032. ...PETITIONER AND 1. UNION OF lNDlA, Rep. by Secretary to Govt. of lndia, Department of Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi- 1 '10001 , 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi-1 10001 , Rep. by its Chairman. 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards, Hyderabad- 500004. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or writ especially one in the nature of writ of mandamus declaring a) that the Notification No. 2Ol2021lF No 3701421351202OTPL dated 3'110312021 and Notification No. 38i2021 lF No 3701421351202OTPL daled 271O412021 issued by the 2nd Respondent extending the time limit under the pre-amended provisions as not applicable after 0110412021 after declaring the same as ultra vires the provisions of the lncome Tax Act 1961 and b) that the notice dated 2310412021 issued by the 3rd Respondent with DIN and Notice No. ITBAiAST/S/14812021-2211032624765(1) proposing to reopen the I I l ,l I I r assessment of the Petitioner for the Assessment Year 2017-18 as being arbitrary, illegal, bad in law, barred by limitation and without jurisdiction being contrary to the provisions of the lncome Tax Act 1961 and consequently to set aside the same in the interest of justice. Petition under Section 15'1 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings on the file of 3rd Respondent pursuant to issuance of the notice dated 2310412021 with DIN and Notice No. ITBA/ASTlSl148l2O21- 2211032624765(1) calling upon the Petitioner to file return of income for asst. year 2017-18. Counsel for the Petitioner:SRl. A V RAGHU RAM Counsel forthe Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO, ASST. SOLICITOR GENERAL Counsel for the Respondent Nos. 2 & 3: SRl. K. RAJI REDDY, SC FOR CT WP NO: 20531 OF 2021 Between: Smt. Geetha Rani Gandra, W/o. Sri Gandra Mohan Rao, R/o. Villa No.54A, Ektha Prime Highland Park. Financial District, Nanakramguda, Gachibowli, Hyderabad- 500032. ...PETITIONER AND 1. UNION OF lNDlA, Rep. by Secretary to Govt. of lndia, Department of Revenue, Ministry of Finance. Government of lndia, North Block, New Delhi- 110001 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi-1 10001, Rep. by its Chairman. 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards, Hyderabad- 500004 ...RESPONDENTS Petition under Article 226 ol the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or writ especially one in the nature of writ of mandamus declaring a). that the Notification No. 20l2O21lF No 370142/35/202OTPL dated 31 .O3.2O21 and Notification No. 38/2021 lF No 37O142135/2020TP1 dated 27.04.2021 issued I I i I I lA NO: 1 OF 20el 7/ by the 2nd Respondent extending the time limit under the pre-amended provisions as not applicable after 01 .O4.2O21 after declaring the same as ultra vires the provisions of the lncome Tax Act '1961 and ] b). that the notice dated 2310412021 issued by the 3rd Respondent with DIN and Notice No. ITBA/AST/S/14812021-2211032624760(1) proposing to reopen the assessment of the Petitioner for the Assessment Year 2017-18 as being arbitrary, illegal, bad in law, barred by limitation and without jurisdiction being contrary to the provisions of the lncome Tax Act 1961 and consequently to set aside the same in the interest of justice. Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings on the file of 3rd Respondent pursuant to issuance of the notice dated 23.04.2021 with DIN & Notice No. ITBAJAST/S/14812021- 2211032624760(l) calling upon the Petitioner to file return of income for asst. year 2017-18. Counsel for the Petitioner:SRl. A V RAGHU RAM Counsel for the Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO, ASST. SOLICITOR GENERAL Counsel forthe Respondent Nos.2 & 3: SRl. K. RAJI REDDY, SC FOR CT WP NO: 20581 OF 2021 Between: Sri Mohan Rao Gandra, S/o. Sri G.Raghavendra Rao, Rl/o. Villa No.54A, Ektha Prime Highland Park, Financial District, Nanakramguda, Gachibowli, Hyderabad- 500032. ..,PETITIONER AND 1. UNION OF lNDlA, Rep. by Secretary to Govt. of lndia, Department of Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi- '1 10001, 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi-11000'l , Rep. by its Chairman. 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards, Hyderabad- 500004. lA NO: 1 OF 2021 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or writ especially one in the nature of writ of mandamus declaring. a) that the Notification No. 20l2O21lF No 37O14213512020TPL dated 31103/2021 and Notification No. 38/2021lF No 370142135/2020TP1 dated.27l04l2021 issued by the 2nd Respondent extending the time limit under the pre-amended provisions as not applicable after 01 .04.2021 after declaring the same as ultra virus the provisions of the lncome Tax Act 1961 and b) that the notice dated.23l04l2o21 issued by the 3rd Respondent with DIN and Notice No. ITBA/AST/S/'14812021-2211032624766(1) proposing to reopen the assessment of the Petitioner for the Assessment Year 2O16-17 as being arbitrary, illegal, bad in law, barred by limitation and without jurisdiction being contrary to the provisions of the lncome Tax Act 1961 and consequently to set aside the same in the interest of justice. Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings on the file of 3rd Respondent pursuant to issuance of the notice dated 2310412021 with DIN and Notice No. ITBA/ASTlSl148l2O21- 2211032624766(1) calling upon the Petitioner to file return of income for asst. year 2016-17. Counsel for the Petitioner:SRl. A V RAGHU RAM Counsel for the Respondent No. 'l: SRl. NAMAVARAPU RAJESHWAR RAO, ASST. SOLICITOR GENERAL Counsel for the Respondent Nos. 2 & 3: SRl. K. RAJI REDDY, SC FOR CT WP NO: 20655 OF 2021 Between: Sri Vikas Kumar, S/o. Sri Satish Charkaman, Hyderabad- 500002. No. 21-2-94, Gulzar House ...PETITIONER AND 'l . UNION OF lNDIA, Rep. by Secretary to Govt. of lndia, Department of Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi- 1 10001, 2. CENTRAL BOARD OF DIRECT TAXES, Department of Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi-1'10001, Rep. by its Chairman.. Kumar, I lA NO: 1 OF 2021 3 ,..RESPONDENTS Petition under Article 226 ol the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or writ especially one in the nature of writ of mandamus declaring. a) that the Notification No. 2Ol2021lF No 370142l35l2O2OfPL daled 3110312021 and Notification No. 38/2021|F No 370142l35l2O2OfPL dated 2710412021 issued by the 2nd Respondent extending the time limit under the pre-amended provisions as not applicable after 0110412021 after declaring the same as ultra virus the provisions of the lncome Tax Act 1961, and b) that the notice dated 2910612021 issued by the 3rd Respondent with DIN and Notice No. ITBA/AST/Si14812021-2211033851500(1) proposing to reopen the assessment of the Petitioner for the Assessment Year 2014-15 as being arbitrary, illegal, bad in law, barred by limitation and without jurisdiction being contrary to the provisions of the lncome Tax Act 196'1 and consequently to set aside the same in the interest of justice. Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings on the file of 3rd Respondent pursuant to issuance of the notice dated 29lOOl2O21 with DIN and Notice No. ITBA/AST/S/14812021- 2211033851500(1) calling upon the Petitioner to file return of income for asst. year 2014-15. Counsel for the Petitioner:SRl. A V RAGHU RAM Counsel for the Respondent No. 1: SRl. NAMAVARAPU RAJESHWAR RAO, ASST. SOLICITOR GENERAL Counsel forthe Respondent Nos.2 & 3: SRl. K. RAJI REDDY, SC FOR CT WP NO: 29015 OF 2021 Between: ASSISTANT COI IMISSlONER OF INCOME TAX, Circle 8(1), Signature Towers, Opp. Botanical Gardens, Kondapur, Hyderabad- 500084 Suryalakshmi Cotton Mills Ltd, Registered office at Surya Towers, 6th floor 105 Sardar Patel Road, Secunderabad - 500003 Rep. by its Authorised Signatory Pan No.AAECS1921 R ...PETITIONER lA NO: 1 OF 2021 AND ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Writ Order or Direction more particularly in the nature of Writ of Certiorari quashing the impugned Notice No.ITBA/ASTiS l'14812021- 2211032703737(1)dated 2810412021 issued by the 1St respondent under section 148 ofthe lncome Tax Act, 1961 for A.Y.2015-'16 as being without jurisdiction. without authority of law, beyond period of limitation, contrary to provisions of lncome Tax Act, arbitrary and illegal. lA NO: 1 OF 2021 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay the impugned Notice No.lTBA/AST/S114812021- 22110327O3737(1) dated 2810412021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1961 for A.Y.2015-16 and all further proceedings pursuantto impugned notice Counsel for the Petitioner:SRl. C V NARASIMHAM Counsel for the Respondent No. 2: SRl. N. RAJESHWAR RAO, ASST. SOLICITOR GENERAL WP NO: 29122OF 2021 Between: 1. Assistant Commissioner of lncome Tax Circle 3(1), Hyderabad Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 2. Union of lndia, Rep. by its Secretary, Department of Revenue, tr/inistry of Finance, North Block New Delhi - 1 '10 001 Suryalakshmi Cotton Mills Ltd., Registered office at Surya Towers, 6th floor 105 Sardar Patel Road, Secunderabad 500003 Rep. by its Authorised Signatory Pan No.AAECS1921 R ...PETITIONER AND 1. The Assistant Commissioner of lncome Tax, Circle 3(1), Hyderabad Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 2. Deputy Commissioner of lncome Tax, Circle 3(2), Hyderabad Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 Counsel for the Respondent No. 1: SRl. A RADHA KRISHNA - 3 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Writ Order or Direction more particularly in the nature of Writ of Certiorari quashing the impugned Notice No.ITBA/AST/S 114812021- 2211032476846(1) dated 16-04-2021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1961 for A.Y.2014-15 as being without jurisdiction, without authority of law, beyond period of limitation, contrary to provisions of lncome Tax Act, arbitrary and illegal. Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay the impugned Notice No.ITBAIAST/S/148/2021- 2211032476846(1 ) dated 16-04- 2021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1961 lor A.Y.2O14-15 and all further proceedings pursuant to impugned notice. Counsel for the Petitioner:SRI. C V NARASIMHAM Counsel for the Respondent Nos. 'l & 2: SRl. A. RADHA KRISHNA Counsel for the Respondent No. 3:SRl. N. RAJESHWAR RAO, ASST. SOLICITOR GENERAL WP NO: 29532 OF 2021 Between: Unron of lndia, Rep. by rts Secretary, Department of Revenue, Ministry of Finance, North Block New Delhi - 1 10 001 Suryalakshmi Cotton Mills Ltd, Registered office at Surya Towers, 6th floor 105 Sardar Patel Road, Secunderabad - 500003 Rep. by its Authorised Signatory Pan No.AAECS1921 R ...PETITIONER AND 1. Assistant Commissioner of Income Tax Circle 3(1) And 2 Others, Hyderabad Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 2. Assistant Commissioner of lncome Tax Circle 3(2), Hyderabad Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 3. Union of lndia, Rep. by its Secretary, Department of Revenue, Ministry of Finance, North Block New Delhi - 110 001 ...RESPONDENTS lA NO: 1 OF 2021 Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Writ Order or Direction more particularly in the nature of Writ of Certiorari quashing the impugned Notice No.ITBA/AST/S l14Bl2O21- 2211032264340( 1 )dated 0710412021 issued by the 1st respondent under section 148 of the lncome Tax Act, 1 961 tor A.Y .2O17-18 as being without jurisdiction, without authority of law, beyond period of limitation, contrary to provisions of lncome Tax Act, arbitrary and illegal. Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay the impugned Notice No.lTBA/AST/S114812021- 2211032264340(1) dated 07 10412021 issued by the 1 st respondent under section 1 48 of the lncome Tax Act. 1961 for A.Y.201 7-1 8 and all further proceedings pursuant to impugned notice Counsel for the Respondent Nos. 1 & 2: SRl. A RADHA KRISHNA Counsel for the Respondent No. 3: SRl. N. RAJESHWAR RAO, ASST. SOLICITOR GENERAL Between: SRI. BRIJESH CHANDWANI, SON OF CHANDRA PRAKASH CHANDWANI, AGED ABOUT 49 YEARS, Fl/o. 67/C, IVLA COLONY, ROAD NO. 12, BANJARA HILLS, HYDERABAD- 5OO 034 AND 1. THE INCOME TAX OFFICER, WARD 14(1), INCOME TAX TOWERS, AC GAURDS, MASAB TANK, HYDERABAD - 5OOOO4. 2. CENTRAL BOARD OF DIRECT TAXES, THROUGH THE SECRETARY DEPARIMENT OF REVENUE, MINISTRY OF FINANCE, UNION OF INDIA, NORTH BLOCK, NEW DELHI - 11OOO2. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX, HYDERABAD. 1,, INCOME TAX TOWERS, AC GAURDS, MASAB TANK, HYDERABAD - 500004. ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the Hiqh Court may be pleased to issue a writ, order or direction in the nature of writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice issued under the lA NO: 1 OF 2021 Counsel for the Petitioner:SRl. C V NARASIMHAM WP NO: 8245 OF 2022 ..,PETITIONER provision of section 148 of the lncome-tax Act, 196'l issued by the Respondent No. 1 as enclosed and marked as Annexure-A vide No. ITBA/AST/S/14812021- 20221 1 033882366( 1 ) dated 30 I 06 I 2021 for the A.Y. 201 6-20 17 . b) Declare that the Explanation below clause (A) in the Notification bearing No.20120211 F. No.370'14213512020-fPL daled 3110312021 herein marked as Annexure-B and No.38/2021|F. No.3701421351202O-TPL dated 2710412021 herein marked as Annexure-C issued by the Respondent No.2 is ultra vires the provisions of the lncome-tax Act, 1961 and the provisions of the Taxation And Other Laws (Relaxation and Amendment of Certain Provisions) Act,2020, and thus bad in law c) Declare that in the event it is beinE held that the impugned Notifications bearing No.20l2o21l F. No.37014213512O2O-TPL dated 3110312021 herein marked as Annexure-B and No.38/2021lF. No.3701421351202O-TPL daled 2710412021 herein marked as Annexure-C issued by the Respondent No.2 enable the Respondents and the lncome{ax authorities to dispense with the requirement to comply with the conditions precedent that are set out in Section '148A of the lncome-tax Act, 1961 before issuing any notice under Section 148 of the lncome{ax Act, 1961 , the said Notifications are ultra vires the provisions of the lncome{ax Act, 1961 and the provisions of the Taxation And Other Laws (Relaxation and Amendment of Certain Provisions) Act,2O2O, and thus bad in law e) Declare that the impugned proceedings initiated by the Respondent No.1 under the lncome-tax Act, 1961 , are illegal and without the authority of law. Petition under Section 15 1 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to issue an ad-interim order to. a) Stay the operation of the notice issued under the provision of section 148 of the lncome-tax Act, 1961 issued by the Respondent No. 1 , as enclosed and marked as Annexure-A vide no. ITBA/AST/S/14812021-202211033882366(1) dated 3010612021 for the A.Y. 2O16-2017. b) Grant such Counsel for the Petitioner:SRl. T. ARCHAN KUMAR Counsel forthe RespondentNos. 1 & 3: SRl. K. RAJI REDDY, SC FOR lT Counsel forthe Respondent No.2: SRl. N. RAJESHWAR RAO, ASST. SOLICITOR GENERAL d) Declare that the extension of time limit by the Taxation And Other Laws (Relaxation and Amendment of Certain Provisions) Act,2020 does not apply to notices issued under erstwhile section 148 of the lncome-tax Act, 1 961 after o110412021 lA NO: 1 OF 2022 ..'.------------ WP NO: 6244 OF 2022 Between: 1. Xilinx lndia Technology Services Private Limited, Block A, B, C, 13TH Floor Meenakshi Tech Park, Survey No. 39, Gachibowli Hyderabad 500084 , Telangana Represented by its Director Mr.Praveen Reddy Shyamala, S/o. Janardhan Reddy Shyamala aged about 50 Years ...PETTTTONER(S) AND 1. The Central Board of Direct Tax, lncome tax department New Delhi 2. The Assistant Commissioner of lncome Tax, Circle 8(1), Hyderabad ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased toto issue a Writ, Order or direction more particularly in the nature of a Writ of Mandamu(declaring part of the Clause A(a) relating to section 148 and the Explanation therein in Notification no.2012021 dated 31 .3.2021 and part of the Clause A(b) relating to section 148 and the Explanation therein in Notification no.3812021 dated 27.4.2021 issued by the 1st Respondent as unconstitutional, illegal and ultra vires the lncome tax Act, 1961 and the Constitution of lndia, and consequently quash the impugned notice under section 148 in DIN and Notice No.ITBA/AST/Sl14Bl2O21-2211033918482(1) dated 30.06.2021for the Assessment yeat 2016-17. lA NO: 1 OF 2022 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant an order of lnterim stay of part of the Clause A(a) relating to section 148 and the Explanation therein in Notification no.2Ol2O21 dated 31.3.2021 and part of the Clause A(b) relating to section 148 and the Explanation therein in Notification no.3812021 dated 27.4.2021 pending disposal of this writ Petition and thus render justice. Counsel for the Petitioner:SRl. M NAGA DEEPAK Counsel for the Respondents: NONE APPEARED The Court made the following: I THE HONOURABLE SR I JUSTICE UJJAL BHUYAN AND WRIT PETITION Nos.20529 20531 20581 20655 29015 29122 and 29532 of 2021 and 8245 & 6244 of 2022 COMMON ORDER: (Pct Han bte Sn Jushcc ulat Bhuyan) Heard Mr. T.Archan Kumar, Mr. A.V.Raghu Ram, Mr. C.V.Narasimham and Mr. M.Naga Deepak, learned counsel for the petitioners. We have also heard Mr.B.Narasimha Sarma, Mr. J.V.Prasad and Mr. A.Radha Krishna, learned Standing Counsel for lncome Tax Department for the respondents as well as Mr. B.Mukher.jee, learned counsel appearing on behalf of Mr. N,Rajeshwar Rao, Iearned Assistant Solicitor General of lndia for Union of lndia. 2. ln all the writ petitions in this bunch, challenge has been made to the legality and validity of notices issued by the assessing officer under Section 148 of the lncome Tax Act, 1961 (briefly referred to hereinafter as the 'Act'). All the notices are post 01.04.2021 , but issued under the un-amended provision of Section 148 of the Act. 3. By the aforesaid notices, assessing officer proposed to assess/re-assess income of the petitioners for the respective assessment years on the ground that he has reasons to believe that income chargeable to tax had escaped assessment. 4. Contention of the petitioners is that Section 14BA of the Act has been inserted in the Act by way of recent amendment and which has come into effect trom 01.O4.2021. As per Section 14BA of the Act, the assessing ( THE HONOURABLE MRS JUSTICE SUREPALLI NANDA officer is required to conduct an enquiry with the approval of the specified authority with respect to the information suggesting thal income chargeable to tax has escaped assessment prior to issuing any notice under Section 148 of the Act. He is also required to provide an opportunity of hearing to the assessee and to consider a reply of the assessee. Thereafter, under Section 14BA(d) of the Act, he has to take a decision on the basis of the available materials including reply of the assessee as to whether it is a fit case for reopening and only thereafter and if he is satisfied that it is a fit case for reopening, then notice under Section 148 of the Act is required to be issued. 5. The impugned notices have been challenged in the present batch of writ petitions on the ground that the procedure laid down under Section 148,4 of the Act has not been followed, which has rendered the impugned notices null and void. 6. ln all the writ petitions, notices were issued and the impugned notices have been stayed. 7. lt may be mentioned that several High Courts had passed judgments setting aside such notices including the High Court of Judicature at Allahabad in Writ Tax No.52412021 , against which Union of lndia filed Special Leave Petitions. On leave being granted, Civil Appeal No.3005/2022 (Union of lndia vs. Ashish Agarwal) along with other connected Civil Appeals were heard by the Supreme Court and decided vrde the judgment and order dated 04.05.2022, which has since been reported in 2O22 SCC Online SC 543. Afler analysing the provisions of the Act from Sections 147 lo 151 of the Act, J r { more particularly the provasions contained in Section 148A of the Act, Supreme Court observed as follows: Thus, the new provisions substituted by the Finance Act,2021 being remedial and benevolent in nature and substituted with a specific aim and object to protect the rights and interest of the assessee as well as and the same berng in public interest, the respective High Courts have raghtly held that the benefit of new provisions shall be made available even in respect of the proceedings relating to past assessment years, provided section 148 notice has been issued on or after lst Aprll, 2021 . We are in complete agreement with the view taken by the various High Courts in holding so.\" 8. However, taking the view that judgments of the High Courts would result in no re-assessment proceedings at all, Supreme Court proposed to modify the judgments and orders passed by various High Courts in the following manner: B. However, at the same time, the judgments of the several High Courts would result in no reassessment proceedings at all, even if the same are permissible under the Finance Act, 2021 and as per substituted sections 147 to 151 of the lT Act. The Revenue cannot be made remediless and the object and purpose of reassessment proceedings cannot be frustrated. lt is true that due to a bonafide mistake and in view of /,'subsequent extension of time vide various notifications, the Revenue issued the impugned notices under section 148 after the amendment was enforced w.e.f. 7 01 .O4 2021 . under the unamended section 148 ln our view the same ought not to have been issued under the unamended Act and ought to have been issued under the substituted provisions of sections 1 47 to 1 5'1 of the lT Act as per the Frnance Act, 2021 . There appears to be genuine non-application of the amendments as the officers of the Revenue may have been under a bonafide belief that the amendments may not yet have been enforced. Therefore, we are of the opinion that some leeway must be shown in that regard which the High Courts could have done so. Therefore, instead of quashing and setting aside the reassessment notices issued under the unamended provision of lT Act, the High Courts ought to have passed an order construing the notices issued under unamended AcU unamended provision of the lT Act as those deemed to have been issued under section 1484 of the lT Act as per the new provision section 1484 and the Revenue ought to have been permitted to proceed further with the reassessment proceedings as per the substituted provisions of sections 147 to 151 of the lT Act as per the Finance Act, 2021 , subject to compliance of all the procedural requirements and the defences, which may be available to the assessee under the substituted provisions of sections 147 to 151 of the lT Act and which may be available under the Finance Ac|,2021 and in law. Therefore, we propose to modify the judgments and orders passed by the respective High Courts as under:- The respective impugned section 148 notices issued to the respective assessees shall be deemed to have been issued under section 148A of the lT Act as substituted by the Finance Act, 2021 and treated to be show-cause notices in terms of section 148A(b). The respective assessing officers shall within thirty days from today provide to the assessees the information and material relied upon by the Revenue so that the assessees can reply to the notices within two weeks thereafter; The requirement of conducting any enquiry with the prior approval of the specified authority under section 148A(a) be dispensed with as a one{ime 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; The assessing officers shall thereafter pass an order in terms of section 14BA(d) after following the due procedure as required under section 148A(b) in respect of each of the concerned ASSESSEES; All the defences which may be available to the assessee under section 149 andlor which may be available under the Finance Acl,2021 and in law and whatever rights are available to the Assessing Officer under the Finance Act, 2021 are kept open and/or shall continue to be available and; The present order shall substitute/modify respective judgments and orders passed by the respective High Courts quashing the Siifi'ria r nolices issued under unamended sectron '148 of the lT Act irrespective of whether they have been assailed before this Courl or not.\" 9. Finally, the Civil Appeals were allowed in part and judgments of the various High Courts have been modified and substituted as under: \"10. ln view of the above and for the reasons stated above, the present Appeals are ALLOWED lN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No. 52412021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under.- The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 14BA(a) is hereby dispensed with as a one-time measure vis-d-ys those notices which have been issued nder section 148 of the unamended Act from 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 lT 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 assesees can reply to the show-cause notices within two weeks thereafter; U.A4.2021 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; 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); All defences which may be available to the assesses including those available under section 149 of the lT Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available.\" 1 10. Supreme Court also clarified that its decision in Ashish Aganival (supra) rendered on 04.05.2022 was an order passed under Article 142 of lhe Constitution of lndia and would be binding in all cases where similar notices have either been set aside by the High Courts or are pending adjudication before the High Courts. lt has been held as follows. )1. fhe 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 ) i'i To, 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 lndia 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 writ petitions, pending before various High Courts in which similar notices under Section 148 of the Act issued after 01.O4.2021 are under challenge-\" 11. Mr. J.V.Prasad, learned Standing Counsel has placed before us lnstruction No 0112022 dated 1 1.05.2022 issuep by the Central Board of Direct Taxes (CBDT) issuing instructions to the assessing officers regarding implementation of the judgment of the Supreme Court in Ashish Agarwal (supra) which we have duly taken note of. 12. That being the position, the present batch of writ petitions would stand disposed of in terms of the judgment of the Supreme Court in Ashish Agarwal (supra). However, there shall be no order as to costs. '13. As a sequel, miscellaneous applications pending, if any, in these Writ Petitions, shall stand closed. //TRUE COPY// SD/.K.VENKAIAH ASSISTANT REGISTRAR ( tt) SECTION OFFICER 1. The Secretary to Govt. of lndia, Department of Revenue, Union of India, Ministry of Finance, Govemment of lndia, North Block, New Delhi-1 10001, 2. The Chairman, Central Board Of Direct Taxes, Department of Revenue, Ministry of Finance, Government of lndia, North Block, New Delhi-1 10001 . 3. INCOME TAX OFFICER, Ward 14(1), Hyderabad, l.T.Towers, A.C.Guards, Hyderabad- 500004. 4. Assistant Commissioner Of lncome Tax, Circle 8(1), Signature Towers, Opp Botanical Gardens, Kondapur, Hyderabad- 500084 I ! --- 5. Assistant Commtssioner of lncome Tax Circle 3(1), Hyderabad Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 6. The Secretary, Union of lndia, Department of Revenue. tvlinistry of Finance, North Block New Dethi - 1i0 001 7. Deputy Commissioner of lncome Tax, Circle 3(2), Hyderabad Signature Towers, Opp. Botanical Gardens Kondapur, Hyderabad - 500084 8. The Secretary, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Union of lndia, North Block, New Delhi - 110002. 9. The Principal Commissioner of lncome Tax, Hyderabad - 1,, lncome Tax Towers, AC Gaurds, lvlasab Tank, Hyderabdd - 500004. 10-The Central Board of Direct Tax, lncome tax department New Delhi '1 1.The Assistant Commissioner of lncome Tax, Circle B(1), Hyderabad 12.One CC to Sri.A.V. Raghu Ram, Advocate [OPUC] 13. One CC to Sri.K. Raji Reddy, SC for CT [OPUC] 1 4. One CC to Sri.N. Rajeshwar Rao, Asst. Solicitor General [OPUC] '15. One CC to Sri.C.V. Narasimham, Advocate [OPUC] '16.One CC to Sri.A. Radha Krishna, Advocate [OPUC] 17. One CC to Sri.T. Archan Kumar, Advocate IOPUCj 18.One CC to Sri.M. Naga Deepak, Advocate IOPUC] 19.Two CD Copies. i I I P[ .4 11 --- SWN\" t1 HIGH COURT DATED:131OG12022 COMMON ORDER WP.No.20529 20531 , 20581 , 20655, 29015, 29122 & 295320F 2021 AND 8245 &62440F 2022 \"\" . r [ 1 sr,-P 2[ll -,:7 * Disposing of the WPs Without costs. >b @ "