TANUJA SINGH V. UNION OF INDIA THROUGH THE SECRETARY MINISTRY OF FINANCE DEPTT OF REVENUE

WPC/1596/2022

AI Insights

The case involves two writ petitions filed by Tanuja Singh challenging the notices issued under the unamended section 148 of the Income Tax Act, 1961, dated 31.03.2021, and the subsequent assessment order dated 29.03.2022. The petitioner argued that the notices were invalid due to the amendment introduced by the Finance Act, 2021, which required a preliminary inquiry under section 148A before reassessment proceedings. The respondents contended that the notices were valid as they were issued and signed on 31.03.2021, before the amendment came into effect. The court referenced the Supreme Court's decision in Ashish Agarwal, which allowed such notices to be treated as issued under the amended section 148-A, and advised the petitioner to pursue an appeal.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 679838 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 07-06-2022
• Assessment Year: misc
• Other Referred Cases: Union of India and others versus Ashish Agarwal, Madhya Pradesh High Court in Writ Petition No. 28293/2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: GAUTAM KUMAR; RAHUL LAMBA
• Assessee Lawyers: SUMEET GADODIA
• Keywords: Finance Act 2021; Income Tax; Jurisdiction; Notice; Reassessment; Section 148A
• Section: 147; 148; 144; 144B; 148A

Judgement Text

"IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P (T) No. 1589 of 2022 With W.P (T) No. 1596 of 2022 Tanuja Singh --- --- Petitioner [both cases] Versus 1. Union of India through the Secretary, Ministry of Finance, Department of Revenue, New Delhi 2. Central Board of Direct Taxes through its Chairman, New Delhi 3. The Assistant Commissioner of Income Tax, Circle-1, Dhanbad --- --- Respondents [both cases] --- CORAM: Hon’ble Mr. Justice Aparesh Kumar Singh Hon’ble Mr. Justice Deepak Roshan --- For the Petitioner: Mr. Sumeet Gadodia, Advocate For the Resp.-Union of India: Mr. Gautam Kumar, C.G.S.C For the Resp.-I.T Department: Mr. Rahul Lamba, Advocate ---- 04 / 07.06.2022 In both the writ petitions, the impugned notices issued under unamended section 148 of Income Tax Act, 1961 are dated 31.03.2021. The assessment order passed under section 147 read with section 144 and section 144B of Income Tax Act consequent thereto on 29.03.2022 has been sought to be challenged through I.A. No. 4121/2022 and I.A. No. 4127/2022 in the respective writ petitions. In both the cases, as per the petitioner, notices were communicated on 06.04.2021 and 10.04.2021 respectively i.e. after 31.03.2021. Based on this fact, learned counsel for the petitioner has urged that the impugned notice under unamended section 148 of the Act is bad in law in view of amendment carried out by the Finance Act, 2021 bringing into force Section 148A which requires a preliminary enquiry before initiating reassessment proceedings. Since the impugned notice is bad in law, any assessment undertaken thereunder would necessarily be without jurisdiction and void. 2. Learned counsel for the petitioner has referred to the judgment rendered by the Apex Court dated May 04, 2022 in the case of Union of India and others versus Ashish Agarwal in Civil Appeal No. 3005/2022 and analogous Civil Appeals reported in [2022 SCC OnLine SC 543]. Learned counsel for the petitioner has relied upon the judgment rendered by the Madhya Pradesh High Court in Writ Petition No. 28293/2021 dated 03.03.2022 (Annexure-9 to both the writ petitions). It is submitted that the Division Bench of Madhya Pradesh High Court took note of the correspondence dated 24.02.2022 bearing letter no. 1002 issued by the Income Tax Officer-3 (1) of Bhopal which showed that the impugned notice dated 31.03.2021 was in fact sent to the said petitioner on 16.04.2021 through e-mail. Therefore, the Hon’ble Court held that the impugned notice under unamended Section 148 issued after 01.04.2021, could not have been acted upon in view of amended section 148-A of Income Tax Act, 1961 brought into force with effect from 01.04.2021 to undertake reassessment proceedings without following the mandatory requirement of amended section 148-A of Income Tax Act. 3. Learned counsel for the Respondent Income Tax Department submits that reliance upon the judgment of the Apex Court to support the plea of invalidity of the proceedings initiated pursuant to the notice dated 31.03.2021, would not come to the rescue of the petitioner since the Apex Court in the case of Ashish Agarwal (Supra), while exercising power under Article 142 of Constitution of India, held that all such notices under unamended section 148 of Income Tax Act issued by the Revenue after 01.04.2021 which were the subject matter of more than nine thousand writ petitions before the various High Courts would be deemed to be notices issued under amended section 148- A of Income Tax Act. The Apex Court while dispensing with the inquiry contemplated under section 148-A(a) of the Act with prior approval of the specified authority as a onetime measure, allowed the Assessees to take all defences including those available under section 149 of the Act and all rights and contentions which may be available to the concerned Assessees and Revenue under the Finance Act, 2021. Since the impugned notices in the present writ petitions are dated 31.03.2021 and there is nothing on record to show that they were issued after 31.03.2021 and on the contrary, the assessment order as also the impugned notices themselves shows that they were signed and issued on 31.03.2021, such a plea could not come to the aid of the petitioner. Since the assessment order has already been passed, petitioner should avail the remedy of appeal under the Income Tax Act, 1961. 4. Having heard learned counsel for the parties on the plea raised herein and in view of the assessment proceedings having been concluded pursuant to the notice dated 31.03.2021 issued upon the petitioner, we are of the considered view that the petitioner should avail the alternative remedy of appeal. Petitioner is at liberty to raise the instant plea as well before the Appellate Authority. Needless to say, the Appellate Authority shall examine the instant plea in accordance with law and after due inquiry on facts. Writ petitions are accordingly disposed of. I.A. No. 4121/2022 and I.A. No. 4127/2022 are closed. (Aparesh Kumar Singh, J) Ranjeet/ (Deepak Roshan, J) "