VIKAS GEMS INC V. ASSISTANT COMMISSIONER OF INCOME TAX

CW/6348/2022

AI Insights

The case involves Vikas Gems INC, represented by its partner Shri Yashwant Bafna, challenging the notices issued by the Assistant Commissioner of Income Tax, Circle-7, under section 148 of the IT Act. The core issue was the validity of these notices, which were issued under the unamended section 148 prior to its amendment by the Finance Act, 2021. The Supreme Court's ruling in Ashish Agarwal vs. The Union of India addressed similar concerns, leading to a modification of how such notices should be treated and processed. The High Court of Jaipur, following the Supreme Court's precedent, disposed of the writ petition, directing adherence to the modified procedures for issuing and responding to such notices.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 674203 (HC-JAIPUR)
• Appeal Type: Others
• Pronouncement Date: 09-05-2022
• Assessment Year: misc
• Other Referred Cases: Ashish Agarwal Vs. Others
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: AKSHAY SHARMA
• Assessee Lawyers: PRIYESH KASLIWAL
• Keywords: Finance Act 2021; Income Tax; Section 148 notices; Writ petition
• Section: 148; 148A

Judgement Text

"HIGH COURT OF JUDICATURE FOR WASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 634812022 Vikas Gems INC, H-159, ~ez-11; Jaipur Sitapura Industrial Area, Jaipur Rajasthan Through Its Partner Shri Yashwant Bafna. Versus Assistant Commissioner Of Income Tax, Circle-7, Income Tax enartment. Sidhnath Bhawan.. Dl - , - . _. . . _ ~ -, - ~ Lal Kothi, Behind New Vidhansabha \" W ' P < - * . . . . . , % .. . ,m4, For Pe. titioV(s) : Mr. Priyesh Kasliwal, Advo%=h Y ! $ -. For ~es$?@rident(s) : Mr. Akshay Sharma, AdvocaGeA % ? \" . X ;x:.. . . 8 HON'BLE M,mUJ 09/05/2022 day, learned counsel for the parties hat the issue raised in this petition is covere 5.2022 passed by the Hon'ble Supreme Co of India & Others Vs. Ashish Agarwal 005/2022 and batch - of appeals). Following directions have been issued by the Hon'ble Supreme Court in the aforesaid case: '10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN 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, islare hereby modified and substituted as under:- (i) 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 s'hall .be deemed to have been issued under section 148A of the IT 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 assessees can reply to the show-cause notices within two weeks thereafter; (ii) The r e q u i r e r w f a \" # q a g any enquiry, if r e q u i r e d C c t $ $ l i $be ~pri'or~~approv,al - # . .a-.s . of specified authoGy\"\"g;.under section 148R~a#f--$s hereby dispwsed with as a one-time measuf??i,s-8-vis tfose; \" notices which have been iss Bdeunder '8%- #?-. ' ~ e 8 i o n -% 148 of the unamended A c t F m 9d1.04.2021 ., , i till date, including those which;:h\"8>ve ' .-been quashed by the High Courts. j \" & y 2 ved hereinabove holding a approval of specified but it is for o hold any II thereafter pass A(d) in respect of ved hereinabove II thereafter pass orders in ter A(d) in respect of es; Thereafter after section 148 (as available to the le under section s and contentions the concerned assessees a the Finance Act, 2021 and in law shall continue to be available. !sEes; Thereafter after &auired under section 1 1 . The 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 Act are set aside and shall be governed by the present order and shall stand modified to the afocesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India 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 01.04.2021 are under challenge. 12. The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by various High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to nlF:: , .-.~.,, . he aforesaid extent. \" 0'' In the facts of the case, there sh order as to costs.\" Accordingly, this in terms of order Supreme Court in th' above. sn is also finally disposed of ed by the Hon'ble I. (supra), as stated The authori proceed to decide the ued by the Hon'ble matter in accordance wi Supreme Court in para Consequen stay application filed t stands disposed of accor the writ petition, the ive and the same also (SAMEER INN),] MRIKuDl17 (PRAKASH GUPTA),] "