WIPRO EQUITY REWARD TRUST V. PRINCIPAL COMMISSIONER OF

WP/3852/2022

AI Insights

The case involves Wipro Equity Reward Trust and other petitioners challenging the validity of notices issued under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2014-15. The notices were issued by the Income Tax Department, Bangalore, and were contested on the grounds that they were issued beyond the permissible time limits as extended by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The petitioners argued that the explanations in the notifications issued by the Central Board of Direct Taxes (CBDT) were ultra vires the Income Tax Act and the 2020 Act. The court's decision was influenced by precedents from various High Courts, which supported the petitioners' stance.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 726711 (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: E I SANMATHI
• Assessee Lawyers: S GANESH
• 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 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.3852 OF 2022 (T-IT) BETWEEN: 1. WIPRO EQUITY REWARD TRUST DODDAKANNELLI, SARJAPUR ROAD BANGALORE 560 035 REP. HEREIN BY ITS AUTHORISED REPRESENTATIVE MR. VENKATRAMAN .E AGED 37 YEARS. 2. MR. RAMESH JETHWA AGED 63 YEARS (SENIOR CITIZEN’S BENEFIT NOT CLAIMED) S/O C L JETHWA ADDRESS AT A-303 ADMIRALTY SQAURE NO.79, 6HT MAIN, INDIRANAGAR 2ND STAGE, BANGALORE 560 038. 3. MS. PADMAKUMAR BHAGAVATHEESWARAIYER AGED 59 YEARS D/O K. BHAGAVATHEESWARAIYER ADDRESS AT FLAT B13 ADMIRALTY AVENUE APARTMENTS 6TH MAIN, 13TH CROSS INDIRANGAR, BANGALORE 560 038. 2 4. MR. ANANDAPURAM NARAYAN IYENGER RANGANATH AGED 52 YEARS S/O A.S. NARAYAN IYEGAR ADDRESS AT 104, JJ HILL VIEW APARTMENTS NO.5, 4A MAIN KALYANAGAR NAGARBHAVI MAIN ROAD BANGALORE 560 072. PETITIONER NOS.2 TO 4 REPRESENTED BY PETITIONER NO.1 THROUGH ITS AUTHORISED REPRESENTATIVE MR. VENKATRAMAN E. ... PETITIONERS (BY MR. S. GANESH, SR. COUNSEL FOR MR. SANDEEP HUILGOL, ADV.,) AND: 1. PRINCIPAL COMMISSIONER OF INCOME-TAX-3, BANGALORE BMTC BUILDING 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU 560 095. 2. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA REGION GROUND FLOOR, C.R. BUILDING NO.1 QUEENS ROAD BENGALURU 560 001. 3. INCOME TAX OFFICER WARD 5(3)(4), BANGALORE HMT BHAVAN NO.59, BELLARY ROAD GANGANAGAR BANGALROE 560 032. 4. ASSISTANT COMMISSIONER OF INCOEM TAX CIRCLE 3(3)(1), BANGLAORE HMT BHAVAN NO.59, BELLARY ROAD 3 GANGANAGAR BANGALROE 560 032. 5. CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE MINISTRY OF FINANCE UNION OF INDIA NORTH BLOCK NEW DELHI 110 002 REP. HEREIN BY ITS CHAIRPERSON. 6. THE UNION OF INDIA REP. HEREIN BY THE SECRETARY DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA NORTH BLOCK, NEW DELHI 110 001. ... 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/148/2021-22/1033935558(1) ISSUED BY THE 3RD RESPONDENT FOR AY 2014-15 UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961, TO PETITIONER NO.2 (ANNEXURE-A1). QUASHING THE IMPUGNED NOTICE DATED 30/06/2021 BEARING NO.ITBA/AST/S/148/2021-22/1033935971(1) ISSUED BY THE 4TH RESPONDENT FOR AY 2014-15 UNDER SECTION 48 OF THE INCOME-TAX ACT, 1961, TO PETITIONER NO.3 (ANNEXURE-A2). QUASHING THE IMPUGNED NOTICE DATED 30/06/2021 BEARING NO.ITBA/AST/S/148/2021-22/1033936078(1) ISSUED BY THE 3RD RESPONDENT FOR AY 2014-15 UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961, TO PETITIONER NO.4 (ANNEXURE-A3) & ETC., THIS W.P. COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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 "