Https://Hcservices.ecourts.gov.in/Hcservices v. The Central Board Of Direct Taxes And Another In W.p

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 21.02.2022CORAM : THE HONOURABLE MR.JUSTICE R.SURESH KUMAR W.P.NO.3235 OF 2022AND W.M.P.NOS.3373 & 3374 OF 2022 Muktha Foundations Pvt. Ltd.,Rep. By its Director,Sanjay Karumanchi Narayanan,S/o, Karumanchi Narayanan,No.4, W- Block, 5[th] Main Road,Anna Nagar, Chennai – 600 040. ...Petitioner The Income Tax Officer,Corporate Ward 4(1),Room No.429, Main Building,IV Floor, No.121, Mahatma Gandhi Road,Nungambakkam, Chennai – 600 034. ...Respondent Prayer : Petition filed under Article 226 of the Constitution ofIndia praying for issuance of a Writ of Certiorari calling forthe records in DIN & Notice No:ITBA/AST/S/148/2021-22/1033873799(1) dated 30.06.2021 on the file of the respondent relating toA.Y. 2017-18 and quash the same. The prayer sought for herein is for a Writ of Certioraricalling for the records in DIN & Notice No:ITBA/AST/S/148/2021-22/ 1033873799(1) dated 30.06.2021 on the file of the respondentrelating to A.Y. 2017-18 and quash the same. https://hcservices.ecourts.gov.in/hcservices/ 2. In order to initiate proceedings for opening of theassessment under Section 147 of the Income Tax Act, 1961 (inshort 'the Act'). Notice under Section 148 of the Act was issueddated 30.06.2021 to the assessee. The said notice is underchallenge herein on the sole ground that, since the provisionhas got amended under Section 148A, which comes into effect from01.04.2021, in which, the procedure contemplated under theamended provision has to be followed before issuing notice underSection 148 of the Act. 3. However, the cases where if Section 148 notice wereissued on or before 31.03.2021, the earlier unamended provisionwould apply. On that ground, since the impugned notice underSection 148 of the Act has been issued on 31.06.2021,admittedly, without following the procedure contemplated underthe amended provision, it is vitiated and citing this reason,Mr.G.Baskar, learned counsel appearing for the petitioner wouldsubmit that, the impugned notice would not stand in the legalscrutiny and it is liable to be set aside. 4. Heard Mrs.Hema Muralikrishnan, learned Senior StandingCounsel appearing for the respondent, who would submit that, infact, the issue had been considered in a batch of writ petitionsby the First Bench of this Court and it was decided on04.02.2022 in the matter of Vellore Institute of Technology Vs.The Central Board of Direct Taxes and another in W.P.No.15019 of2021 etc. batch, where, the Division Bench has passed thefollowing order: “19. In view of the ratio propounded by the Allahabadand Delhi High Courts on the subject, the reassessmentnotices under Section 148 of the Act of 1961 served onthe petitioners on or after 1.4.2021 are set asidehaving been issued in reference to the unamendedprovisions and the Explanations are to be read asapplicable to reassessment proceedings if initiated onor prior to 31.3.2021, but it would be with liberty tothe assessing authorities to initiate reassessmentproceedings in accordance with the provisions of theAct of 1961, as amended by the Finance Act, 2021, aftermaking all the compliances as required by law, iflimitation for it survives.” 5. In view of the said judgment, since this notice underSection 148 of the Act was issued / dated 30.06.2021 withoutfollowing the amending provisions under Section 148A, therefore,it is covered under the said decision of the Division Bench, shecontended. 5. In view of the said judgment, since this notice underSection 148 of the Act was issued / dated 30.06.2021 withoutfollowing the amending provisions under Section 148A, therefore,it is covered under the said decision of the Division Bench, shecontended. 6. Having considered the said submission made by the learnedcounsel appearing for both sides and having gone through thesaid judgment of the Division Bench of this Court referred toabove, as admittedly the impugned notice under Section 148 ofthe Act was issued on 30.06.2021 or dated 30.06.2021 withoutfollowing the procedure made through the amended provision ofSection 148A, this Court has no hesitation to hold that, theimpugned notice shall not stand in the legal scrutiny,therefore, it is liable to be set aside. Accordingly, theimpugned notice is set aside. However, it is open to the Revenueto issue fresh notice as per the amended provision, as has beenindicated in the said Division Bench judgment dated 04.02.2022. 7. With the above observation, this Writ Petition isdisposed of. No costs. Consequently, connected miscellaneouspetitions are closed. Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar Sgl ToThe Income Tax Officer,Corporate Ward 4(1),Room No.429, Main Building,IV Floor, No.121, Mahatma Gandhi Road,Nungambakkam, Chennai – 600 034. +1cc to Mr.G.Baskar, Advocate, S.R.No.11263 +1cc to M/s.Hema Muralikrishnan, Advocate, S.R.No.11359 GJ(CO)RLP(08/03/2022)