WIPRO EQUITY REWARD TRUST V. PRINCIPAL COMMISSIONER OF

WP/6982/2022

AI Insights

The case involves Wipro Equity Reward Trust and two individual petitioners, Mohinder Singh Sawhney and Rajesh Surendranath Kochhar, who challenged the validity of notices issued under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2014-15. The petitioners argued that the notices were issued based on notifications that were ultra vires the Income Tax Act and the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The respondents included various commissioners of income tax and the Union of India. The court's decision was influenced by precedents from other High Courts and its own previous judgments, leading to the quashing of the notices and the related notifications.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 740043 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-04-2022
• Assessment Year: misc
• Other Referred Cases: Ashok Kumar 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: E I SANMATHI
• Assessee Lawyers: S GANESH
• 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.6982 OF 2022 (T-IT) BETWEEN: 1. WIPRO EQUITY REWARD TRUST DODDAKANNEHALLI SARJAPURA ROAD BANGALORE 560035 REP. HERREIN BY ITS AUTHORISED REPRESENTATIVE MR. VENKATRAMAN E AGED 37 YEARS. 2. MR. MOHINDER SINGH SAWHNEY AGED 78 YEARS (SENIOR CITIZEN’S BENEFIT NOT CLAIMED) S/O RAJINDEER SINIGH SAWHNEY S65, GOLDEN ENCLAVE AIRPORT ROAD, BANGALORE 560017. 3. MR. RAJESH SURENDRANATH KOCHHAR AGED 64 YEARS (SENIOR CITIZEN’S BENEFIT NOT CLAIMED) S/O SURENDRANTH KOCHAR ROW HOUSE 13, CLUD 9 NIBM ROAD, MOHAMMADWADI PUNE 411060. PETITIONER NOS.2 AND 3 ARE REP. BY PETITONER NO.1 THROUGH ITS AUTHORISED REPRESENTATIVE 2 MR. VENKATRAMAN E. ... PETITIONERS (BY MR. S. GANESH, SR. COUNSEL FOR MR. SANDEEP HUILGOL, ADV.,) AND: 1. PRINCIPAL COMMISSIONER OF INCOMET TAX-2, BANGALORE BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU 560095. 2. PRINCIPAL COMMISSIONER OF INCOME TAX NOIDA, AAYAKAR BHAWAN A-2D, SECTOR 24 NOIDA 201301. 3. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNTAKA AND GOA REGION GROUND FLOOR, C R BUILDING NO.1, QUEEN ROAD BENGALURU 560001. 4. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX UP (WEST) AND UTTRAKHAND REGION 16/69, AAYAKAR BHAWAN CIVIL LINES, KANPUR 208001. 5. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4(1)(1), BANGALORE BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BANGALORE 560095. 6. ASST. COMMISSIONER OF INCOME TAX CIRCLE 5(3)(1) GAUTAM BUDH NAGAR AAYAKAR BHAWAN SECTOR 24 (GB NAGAR) NOIDA, UTTAR PRADESH 201307. 3 7. CENTRAL BOARD OF DIRECT TAXES DEPT. OF REVENUE MINISTRY OF FINANCE UNION OF INDIA NORTH BLOCK NEW DELHI 110002 REP. HEREIN BY ITS CHAIRPERSON. 8. THE UNION OF INDIA REP. HEREIN BY THE SECRETARY DEPT. OF REVENUE MINISTRY OF FINANCE GOVT OF INDIA NORTH BLOCK NEW DELHI 110001. 9. THE ADDL/ JOINT/DEPUTY/ASST COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPT, 2ND FLOOR JAWARHALA NERHU STADIUM NEW DELHI 110003. ... RESPONDENTS (BY MR. E.I. SANMATHI, ADV.) - - - THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE IMPUGNED NOTICE DATED 30/06/2021 BEARING NO.ITBA/AST/S/148/2021-22/1033930836(1) ISSUED BY THE 5TH RESPONDENT FOR AY 2014-15 UNDER SECTION 148 OF THE INCOME-TAX ACT, 196, TO THE PETITIONER NO.2 (ANENXURE- A1). QUASHING THE IMPUGNED NOTICE DATED 30/03/2021 BEARING NO.ITBA/AST/S/148/2021-22/1033929862(1) ISSUED BY THE 6TH RESPONDENT FOR AY 2014-15 UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961, TO PETITIONER NO.3 (ANNEXURE-A2) & ETC., THIS W.P. COMING ON FOR FINAL HEARING, THIS DAY, ALOK ARADHE J., MADE THE FOLLOWING: 4 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 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 5 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 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 6 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 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. 7 In the result, the writ petition is disposed of. Sd/- JUDGE Sd/- JUDGE SS "