Background of this case law:
Ministry has amended section 148 of the Income Tax Act, wherein new procedure and time lines were defined under the Income Tax Act to conduct re-assessment proceedings.
The new procedure was made effective from 01.04.2021. However, Income Tax department had still issued notice u/s 148 after 01.04.2021 in the old procedure and it was challenged by many assessee in different High Courts. Summary of the same is as under:
- Allahabad High court Order
- Rajasthan High Court Order
- Delhi High Court Order
- Rajasthan High court Division bench Order
- Calcutta High Court Order
- Madras High Court
After the above judgement’s by various High court’s the case finally went before Hon’ble Supreme court wherein the hon’ble court has issued the judgement in favor of Revenue and interpreted the implementation of this new provision of section 148 of the Act and how to deal with the notices issued after 01.04.2021 under old provisions.
To read the full judgement of Hon’ble Supreme court CLICK HERE: Supreme court Judgement on controversial issue of notice u/s 148 issued after 01.04.2021 passed in favor of Revenue | Detailed analysis of full judgement – Taxontips
After the above judgement CBDT had issued instructions to the Income Tax Department and guided as to how to issue notices for various years.
The detailed post on such instructions by CBDT are as under: Instructions issued by CBDT in response to judgement passed by Hon’ble Supreme court in case of notice issued u/s 148 after 01.04.2021 – Taxontips
The above instructions are the root cause of the below mentioned case of Punjab and Haryana High court wherein it has been challenged that Income tax department cannot issue notice u/s 148 after the order of Hon’ble Supreme court and same view was presented by our author CA Naman Maloo in both the posts mentioned above.
Now let’s discuss the interim order or interim stay provided by Hon’ble Bombay High Court which is as under:
“1. Issue notice. Mr. Ajeet Manwani, learned counsel waives service for the Respondents. Objections be filed in six weeks.
2. Learned counsel for Petitioner states that the impugned notice dated 7th April, 2021 issued under Section 148 of the Act is unsustainable in law and in as much as it is issued after expiry of a period of six years prescribed in terms of the first proviso to Section 149 of the Act.
3. List on 10th October, 2022.
4. In the meantime, ad-interim relief granted earlier shall continue to operate till the next date. ”
In the above judgement the court has accepted the initial plea of the petitioner i.e. assessee and has been granted interim stay in case of assessee in relation to 148 proceedings initiated under new provision of Income Tax act after 01.04.2021 as per instructions of CBDT.
To read the full judgement of Punjab and Haryana High Court CLICK ME.
Punjab and Haryana High Court has also provided interim stay in this regard. To read the order CLICK ME.
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