WIPRO EQUITY REWARD TRUST V. PRINCIPAL COMMISSIONER OF INCOME TAX -1

WP/17291/2021

AI Insights

The case involves a writ petition filed by Wipro Equity Reward Trust and other petitioners against the notices issued by various Income Tax authorities under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2014-15. The petitioners challenged the validity of these notices and the accompanying notifications issued by the Central Board of Direct Taxes, claiming they were ultra vires the Income Tax Act and the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The court's decision was influenced by precedents from other High Courts and its own earlier judgments, leading to the quashing of the notices and the declaration of the notifications as ultra vires.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 754150 (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: K V ARAVIND
• 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.17291 OF 2021 (T-IT) BETWEEN: 1. WIPRO EQUITY REWARD TRUST DODDAKANNELLI, SARJAPUR ROAD BANGALORE 560035 REPRESENTED HEREIN BY ITS AUTHORISED REPRESENTATIVE MR. BALASUBRAMANIAN K. 2. MR. VENKATESH NARYANA JOIS AGED 56 YEARS S/O NARAYANA JOIS H T ADDRESS AT NO.98, 2ND CROSS CENTRAL EXCISE LAYOUT, VIJAYA NAGAR BENGALURU 560040. 3. MR. RAGHAVAN SUNDARA RAJAN AGED 64 YEARS (SENIOR CITIZEN’S BENEFIT NOT CLAIMED) S/O LATE R. RAGHAVAN ADDRESS AT NO.777, 13TH CROSS 23RD MAIN, JP NAGAR 2ND PHASE BANGALORE 560078. 4. MR. CHILKUNDA DATHATHREYA ANANT AGED 56 YEARS S/O C T DATHATHREYA ADDRESS AT NO.8, JAIKUMAR LAYOUT 2 KONANKUNTE BANGALORE 560062. 5. MR. ARUN KUMAR RAJARAMAN AGED 57 YEARS S/O L RAJARAMAN ADDRESS AT D2 - 1102 L-T SOUTH CITY APARTMENTS AREKERE, MICO LAYOUT, OFF BG ROAD BANGALORE 560076. 6. MR. RAMESH SRINIVASAN AGED 54 YEARS S/O OF R T SRINIVASAN ADDRESS AT NO. 2/1, V.R. LAYOUT SARAKKI MAIN ROAD, JP NAGAR 1ST PHASE BANGALORE 560078. 7. MR. ANITHA IRISAPPAN AGED 48 YEARS S/O P IRISAPPAN ADDRESS AT 5L WEST WING FERNHILL GARDEN 46, RING ROAD, HSR LAYOUT BANGALORE 560102. 8. MR. SUTTAMALLY MAHADEVAN BALASUBRAMANIYAN AGED 67 YEARS (SENIOR CITIZEN’S BENEFIT NOT CLAIMED) S/O S H MAHADEVAN ADDRESS AT I-208, BRIGADE GATEWAY APARTMENTS 26/1, DR. RAJKUMAR ROAD SUBRAMANYANAGAR BANGALORE 560055. 9. MR. SUSHILKUMAR TILOKCHAND NAHAR AGED 56 YEARS S/O TILOKCHAND NAHAR ADDRESS AT 75, RAINBOW DRIVE SARJAPUR ROAD, NEAR WIPRO BANGALORE 560035. 3 10. MR. UMESH NANDA AGED 77 YEARS (SENIOR CITIZEN’S BENEFIT NOT CLAIMED) S/O S L NANDA ADDRESS AT B101, PALLADIUM MANGALDAS ROAD BUND, GARDEN ROAD PUNE 411001. 11. MR. GIRISH SRIKRISHNA PARANJPE AGED 63 YEARS (SENIOR CITIZEN’S BENEFIT NOT CLAIMED) S/O SRIKRISHNA MOHINIRAJ PARANJPE ADDRESS AT 14 N DILWARA MAHARSHI KARVE ROAD MUMBAI 400021. (PETITIONER NOS.2 TO 11 REPRESENTED BY PETITIONER NO.1 THROUGH ITS AUTHORISED REPRESENTATIVE MR. BALASUBRAMANIAN K. ... PETITIONERS (BY MR. S. GANESH, SR. COUNSEL FOR MR. SANDEEP HUILGOL, ADV.,) AND: 1. PRINCIPAL COMMISSIONER OF INCOME TAX -1 BANGALORE BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU – 560095. 2. PRINCIPAL COMMISSIONER OF INCOME-TAX - 2 BANGALORE BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU – 560095. 3. PRINCIPAL COMMISSIONER OF INCOME-TAX - 3 BANGALORE BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU – 560095. 4 4. PRINCIPAL COMMISSIONER OF INCOME-TAX - 4 HYDERABAD 3RD FLOOR, AAYAKAR BHAVAN BASHEERBAGH, HYDERABAD – 500004. 5. PRINCIPAL COMMISSIONER OF INCOME-TAX - 1 NAGPUR, AAYAKAR BHAVAN CIVIL LINES, NAGPUR 440001. 6. PRINCIPAL COMMISSIONER OF INCOME-TAX - 2 PUNE, PMT BUILDING, SWARGATE SHANKARSHETH ROAD, PUNE 411037. 7. PRINCIPAL COMMISSIONER OF INCOME-TAX - 17 MUMBAI, KAUTILYA BHAVAN BANDRA KURLA COMPLEX MUMBAI 400051. 8. CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE MINISTRY OF FINANCE UNION OF INDIA NORTH BLOCK, NEW DELHI - 110002 REPRESENTED HEREIN BY ITS CHAIRPERSON. 9. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA REGION GROUND FLOOR, CR BUILDING NO.1 QUEENS ROAD BENGALURU – 560001. 10. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX ANDHRA PRADESH AND TELANGANA REGION 10TH FLOOR, IT TOWERS AC GUARDS, HYDERABAD 500004. 11. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX NAGPUR REGION AAYAKAR BHAVAN, CIVIL LINES NAGPUR 440001. 5 12. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX PUNE REGION SADHU VASWANI SQUARE PUNE 411001. 13. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX MUMBAI REGION ROOM NO. 321, AAYAKAR BHAVAN M K ROAD, MUMBAI 400020. 14. INCOME TAX OFFICER WARD 5(3)(1) BANGALORE HMT BHAVAN, NO.59 BELLARY ROAD, GANGANAGAR BANGALORE – 560032. 15. INCOME TAX OFFICER WARD 5(3)(4) BANGALORE HMT BHAVAN, NO.59 BELLARY ROAD, GANGANAGAR BANGALORE – 560032. 16. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 3(3)(1), BANGALORE HMT BHAVAN, NO.59 BELLARY ROAD, GANGANAGAR BANGALORE – 560032. 17. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 13(1), HYDERABAD AAYAKAR BHAVAN, OPPOSITE L B STADIUM BASHEERBAGH, HYDERABAD-500004. 18. ASSISTANT COMMISSIONER OF INCOME TAX DCIT/ACIT CIRCLE-AKOLA AAYAKAR BHAVAN, GORAKSHAN ROAD AKOLA 444001. 19. INCOME TAX OFFICER WARD 2(2), PUNE INCOME TAX OFFICE 6 PMT BUILDING, SHANKAR SETH ROAD, PUNE 411037. 20. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 17(1), MUMBAI ROOM NO 117, 1ST FLOOR KAUTILYA BHAVAN C-41 TO C-43, G BLOCK BANDRA KURLA COMPLEX BANDRA (EAST), MUMBAI 400051. ... RESPONDENTS (BY MR. K.V. ARAVIND A/W MR. DILIP .M, ADVS.,) - - - THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED NOTICE DTD.30.6.2021 ISSUED BY THE R-16 FOR AY 2014-15 UNDER SECTION 148 OF THE INCOME TAX ACT 1961 TO PETITIONER NO.2 ANNEXURE-A1. QUASH THE IMPUGNED NOTICE DTD.30.6.2021 ISSUED BY THE R-16 FOR AY 2014-15 UNDER SECTION 148 OF THE INCOME TAX ACT 1961 TO PETITIONER NO.3 ANNEXURE-A2. QUASH THE IMPUGNED NOTICE DTD.30.6.2021 ISSUED BY THE R-14 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 ORDERS, 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 7 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 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 8 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 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 9 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. In the result, the writ petition is disposed of. Sd/- JUDGE Sd/- JUDGE SS "