SRI NAGARAJI SARAVANA V. THE JOINT COMMISSIONER OF INCOME TAX (OSD)

WP/15038/2021

AI Insights

The case revolves around a writ petition filed by Sri Nagaraji Saravana challenging the validity of notices issued under Section 148 of the Income Tax Act, 1961, and certain notifications by the 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 examined similar cases and precedents from other High Courts and found the notifications to be beyond the legal authority of the CBDT, thus invalidating them and the associated notices.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 754135 (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: Income Tax Act; Quashment of notice; Re-assessment proceeding; Taxation and Other Laws; Ultra Vires
• 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.15038 OF 2021 (T-IT) BETWEEN: SRI. NAGARAJI SARAVANA SON OF SRI. S. NAGARAJI 680, 9TH CROSS, IIND STAGE WEST OF CHORD ROAD BENGALURU-560086. ... PETITIONER (BY MR. A. SHANKAR, SR. COUNSEL FOR MR. S. ANNAMALAI, ADV.,) AND: 1. THE JOINT COMMISSIONER OF INCOME-TAX (OSD) OFFICE OF DEPUTY COMMISSIONER OF INCOME-TAX, JCIT (OSD) CIRCLE 6(1)(1), BMTC BUILDING 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU-560095. 2. CENTRAL BOARD OF DIRECT TAXES THROUGH THE SECRETARY DEPARTMENT OF REVENUE MINISTRY OF FINANCE UNION OF INDIA, NORTH BLOCK NEW DELHI-110002. 2 3. THE PRINCIPAL COMMISSIONER OF INCOME-TAX BENGALURU-1, BMTC BUILDING 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU-560095. ... RESPONDENTS (BY MR. K.V. ARAVIND A/W MR. DILIP M, ADV.) - - - THIS W.P. IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE ISSUED UNDER SECTION 148 OF THE OF THE INCOME-TAX ACT, 1961 DTD. 30.06.2021 FOR THE ASSESSMENT YEAR 2015-16 IN DIN AND NOTICE NO. ITBA/AST/S/14/2021-22/1033930820 (1) HEREIN MARKED AS ANNX-A. DECLARE THAT THE EXPLANATION BELOW CLAUSE (A) IN THE NOTIFICATION BEARING DTD. 31.03.2021 HEREIN MARKED AS ANNX-B AND DTD. 27.04.2021 HEREIN MARKED AS ANNX-C ISSUED BY THE R-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 PROVISIONS) ACT, 2020 AND THUS BAD IN LAW & ETC. THIS W.P. COMING ON FOR ORDERS, 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 3 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 30.06.2021 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 division bench of High Court of Allahabad in ASHOK 4 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.20/2021 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 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 5 impugned notice dated 30.06.2021 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 "