THE CENTRAL ARECANUT AND COCOA MARKETING AND V. THE ASSISTANT COMMISSIONER OF INCOME TAX

WP/5157/2022

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The case involves the Central Arecanut and Cocoa Marketing and Processing Co-operative Limited, represented by its Managing Director, challenging the validity of a notice issued under Section 148 of the Income Tax Act, 1961, for the Assessment year 2016-17. The petitioner argued that the notifications extending the time limit for issuing such notices were ultra vires the Income Tax Act, 1961 and the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The court, referencing several precedents, agreed with the petitioner, quashing the impugned notice and allowing for fresh reassessment under the amended Act.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 758439 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 19-04-2022
• 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: Quashment of notice; Re-assessment proceeding; Ultra Vires
• Section: 148

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF APRIL 2022 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR.JUSTICE S. VISHWAJITH SHETTY W.P. No.5157 OF 2022 (T-IT) BETWEEN: THE CENTRAL ARECANUT AND COCOA MARKETING AND PROCESSING CO-OPERATIVE LIMITED REP BY ITS MANAGING DIRECTOR SRI H M KRISHNA KUMAR AGED 58 YEARS, P B NO 223 VARANASHI TOWERS, MISSION STREET MANGALURU 575001. ... PETITIONER (BY MR. A. SHANKAR, SR. COUNSEL FOR MR. S. ANNAMALAI, ADV.,) AND: 1. THE ASSISTANT COMMISSIONIER OF INCOME TAX CIRCLE - 1(1) AND TPS, MANGALORE C R BUILDING, N R ROAD ATTAWARA, MANGALURU-575001. 2. THE PRINCIPAL COMMISSIOENR OF INCOME TAX PANAJI, 2ND FLOOR, AAYAKAR BHAVAN EDC COMPLEX, PATTO PLAZA PANAJI 403001. 2 3. CENTRAL BOARD OF DIRECT TAXES THROUGH THE SECRETARY DEPT OF REVENUE MINISTRY OF FINANCE NORTH BLOCK NEW DELHI 110001. 4. THE DEPUTY COMMISISONER OF INCOMET TAX CENTRAL CIRCLE -2, MANGALORE C R BUILDING, N G ROAD ATTAWARA, MANGALURU 575001. ... RESPONDENTS (BY MR. K.V. ARAVIND, A/W MR. DILIP .M, ADVOCATES) - - - THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE DATED 23/04/2021 ISSUED UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 BEARING DIN AND NOTICE NO. ITBA/AST/S/148/2021-22/1032639907(1) BY THE RESPONDENT O.1 FOR THE IMPUGNED ASSESSMENT YEAR 2013-14 HEREIN MARKED AS ANNEXURE-A & ETC., THIS W.P. 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 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 23.04.2021 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 4 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 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. 5 The impugned notice dated 23.04.2021 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 "