YAHOO SOFTWARE DEVELOPMENT V. ASSISTANT COMMISSIONER OF INCOME TAX

WP/14473/2021

AI Insights

The case involves Yahoo Software Development India Private Limited challenging the legality of certain notifications and a notice issued under Section 148 of the Income Tax Act, 1961, which pertained to the extension of time limits for certain tax assessments. The petitioner argued that these notifications and the notice were beyond the legal authority provided by the Income Tax Act and the Relaxation Act of 2020. The court's decision was influenced by precedents from other High Courts, which supported the petitioner's stance that the notifications and the notice were not legally valid.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 695548 (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; MADANAN PILLAI
• Assessee Lawyers: SURYANARAYANA
• Keywords: Income Tax Act; Jurisdiction; Notice Quashment; Taxation and Other Laws; Ultra Vires
• Section: 148; 149; 151

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.14473 OF 2021 (T-IT) BETWEEN: YAHOO SOFTWARE DEVELOPMENT INDIA PRIVATE LIMITED TORREY PINES EMBASSY GOLF LINKS OFF INDIRANAGAR KORAMANGALA INTERMEDIATE RING ROAD BANGALORE-560071 REP. HEREIN BY ITS DIRECTOR MR. PRASAD DHONGADI. ... PETITIONER (BY MR. SURYANARAYANA T, SR. COUNSEL FOR MRS. TANMAYEE RAJKUMAR, ADV.,) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 7(1)(1), 2ND FLOOR BMTC BUILDING, 6TH BLOCK 80 FEET ROAD, KORAMANGALA BANGALORE-560095. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 5TH FLOOR, BMTC BUILDING 6TH BLOCK, 80 FEET ROAD KORAMANGALA, BANGALORE-560095. 3. CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK, CENTRAL SECRETARIAT 2 NEW DELHI, DELHI-110001 REP. BY THE SECRETARY TAX POLICY & LEGISLATION DIVISON. ... RESPONDENTS (BY MR. E.I. SANMATHI, ADV., FOR R1 TO R3 MR. MADANAN PILLAI, ADV., FOR R4) - - - THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTIFICATIONS DATED 31.03.2021 AND 27.4.2021 ISSUED BY THE R3 ANNEXURE-J & K TO THE EXTENT THAT THEY EXTEND THE APPLICABILITY OF SECTIONS 148, 149 AND 151 OF THE ACT UNTIL 30.06.2021 AS THEY STOOD PRIOR TO 01.04.2021 AS BEING ULTRA VIRES THE RELAXATION ACT AND THE IT ACT, AND THEREFORE WITHOUT AUTHORITY OF LAW. QUASH THE NOTICE DATED 29.06.2021 ISSUED BY THE R1 ANNEXURE-L U/W 148 OF THE IT ACT, AS BEING WITHOUT JURISDICTION AND THEREFORE ILLEGAL & 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 dated 27.04.2021 issued by Central Board of Direct 3 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 division bench of High Court of Allahabad in ASHOK KUAR AGARWAL VS. UNION OF INDIA’, 4 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 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 "