AJAY KUMAR AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) All these writ petitions were tagged together as they raise common issues. The notices under un-amended sec. 148 of the Income Tax Act, 1961 are under challenge in these writ petitions on the ground that they are not sustainable in law having been issued after 1/4/2021 i.e. after the amendment to the Income Tax Act, 1961 by the Finance Act, 2021 introducing new provision i.e. Sec. 147 to 151 which came into force w.e.f. 1/4/2021. Reference may be made to the interim order dtd. 16/2/2022 passed in W.P.(T) No. 5376 of 2021 and other analogous cases. This Court taking into consideration the orders or final judgment passed by the different jurisdictional High Courts on the same issue and the nature of challenge, restrained the Revenue from taking any further action pursuant to the impugned notices. Similar order has been passed in other analogous writ petitions tagged together which are on board today.

(2.) Today all these matters have been posted on I.A. No. 4147 of 2022 in W.P.(T) No. 1211 of 2022 preferred by the Revenue in view of the judgment rendered by the Apex Court dtd. 4/5/2022 in Civil Appeal No. 3005/2022 in the case of Union of India and others Vrs. Ashish Agarwal and other analogous civil appeals, reported in 2022 SCC Online SC 543. The Apex Court has taken note that approximately 90,000 such reassessment notices under Sec. 148 of the un-amended Income Tax Act were issued by the Revenue after 1/4/2021, which were the subject matter of more than 9000 writ petitions before various High Courts across the country wherein by different judgments and orders including those under challenge the High Courts have taken a similar view and have set aside the respective reassessment notices issued under Sec. 148 on similar grounds. The Apex Court on consideration of the issues which are common and to avoid multiplicity of proceedings and lessen the burden of the Court, passed an order the order in exercise of the power under Article 142 of the Constitution of India. It has also been held that the instant judgment and order shall govern all the order passed by the various High Courts on similar issues.

(3.) Learned counsel for the Revenue Mr. Rahul Lamba and Ms. Amrita Sinha in the respective writ petitions have submitted that by virtue of the order passed by the Apex Court, all such impugned notices under un-amended Sec. 148 of the Income Tax Act are deemed to have been issued under Sec. 148A of the Income Tax Act as substituted by the Finance Act, 2021 and construed and treated to be show cause notices in terms of Sec. 148A (b). The requirement of conducting any enquiry, if required with the prior approval of specified authority under Sec. 148A(a) has been dispensed with as a onetime measure vis-a-vis those notices which have been issued under Sec. 148 of the un-amended Act from 1/4/2021 till date. The assessing officers have been directed to pass orders in terms of Sec. 148A (d) in respect of each of the concerned assessees. Thereafter, after following the procedure as required under Sec. 148A, the assessing officer may issue notice under sec. 148 (as substituted). The Apex Court has also made it clear that all defences which may be available to the assesees including those available under Sec. 149 of the I.T. Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available. The order has been made available Pan India and also applies to pending proceedings before various High Courts. Since a time limit of thirty days has been prescribed for the assessing officer to provide information and materials relied upon by the Revenue to the respective assessees so that the assessees can reply to the show cause notices within two weeks thereafter, Revenue is bound to proceed in the matter without any delay. It is submitted that in the light of the judgment rendered by the Apex Court, the challenge made in these writ petitions do not survive. Therefore, interim order passed in these writ petitions may be vacated and writ petitions may be disposed of.