ASHOK KUMAR AGRAWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Since the cause of action and facts involved in these petitions are similar in nature, therefore, they are being heard together and decided by this common order.

(2.) Challenge in these petitions are to the notice dtd. 28/6/2021 (Annexure P-1) issued under Sec. 148 of the Income Tax Act, 1961.

(3.) Learned counsel for the petitioners would submit that the petitioners have filed the income tax return for the Assessment Year 2017-18 and Financial Year 2016-17. Subsequent thereto on the basis of some information available initially a scrutiny was done however no concealment was found but again a notice under Sec. 148 of the Income Tax Act, 1961 has been issued. It is submitted that on the date i.e. on 28/6/2021 when the notice under Sec. 148 of the Income Tax Act (hereinafter referred to as "Act of 1961") is issued, the power to issue the notice was preceded with a new provision of law and thereby Sec. 148 is to read with Sec. 148-A of the Income Tax Act, 1961. He would submit that as per the amended Finance Act, 2021, which was published in the Gazette on 28/3/2021, sec. 2 to 88 was notified to come into force on 1st day of April 2021 and accordingly the new Sec. 148A was inserted which prescribed that before issuing the notice under Sec. 148 of the Income Tax Act, the Assessing Officer was bound to conduct an enquiry giving an opportunity of hearing to the assessee with the prior approval of specified authority and show cause notice in detail was necessary specifying particular date for hearing. He would submit that since the operation of Sec. 148A came into being on 1/4/2021, as such, the notice issued to the petitioners on 28/6/2021 under Sec. 148 of the Income Tax Act, without following the procedure under Sec. 148A without giving an opportunity of hearing would be illegal and contrary to the provisions of Sec. 148A and it cannot be sustained. It is further submitted that the respondents though have placed reliance on certain notification of Ministry of Finance but when the law has been enacted by the Parliament then in such case the notification issued by the Ministry of Finance would not over ride even to extend the period of operation of sec. of the old Act of Sec. 148 of the Income Tax Act. It is stated Sec. 148A came in between which requires certain obligation to be performed by the Assessing Officer, therefore without giving any opportunity of hearing the notice under Sec. 148 of the Act, 1961 would be alleged. He therefore submits that the impugned notice is illegal and is liable to be quashed.