Https://Hcservices.ecourts.gov.in/Hcservices v. The Income Tax Officer In W.p

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 07.03.2022 CORAM : THE HONOURABLE MR. JUSTICE R.SURESH KUMAR W.P.No.5162 of 2022and W.M.P.Nos.5264 & 5265 of 2022 Mobius Knowledge Services Pvt. Ltd.,Represented by its Director,Mr.Karthik Karunakaran S/o.Mr.Marunakaran,Aged 54 years,No.16, A1, 1[st] Level,Sriram, The Gateway,Perungalathur, GST Road,Chennai – 600 063. ... PetitionerVs. Assistant Commissioner of Income Tax,Corporate Circle 4(1),121, Mahatma Gandhi Road,Nungambakkam, Chennai – 600 034....Respondent Prayer : Writ Petition filed under Article 226 of theConstitution of India for issuance of a Writ of Certiorari,calling for the records in DIN & Notice No:ITBA/AST/S/148/2021-22/1033870156(1) dated 30.06.2021 on the file of the respondentrelating to A.Y. 2015-16 and quash the same. For Petitioner : Mr.S.SrinirajaniFor Respondent : Mr.D.Prabhu Mukunth Arunkumar for Standing Counsel The prayer sought for herein is for a Writ of Certiorari,to quash the order of the respondent in DIN & NoticeNo:ITBA/AST/S/148/2021-22/1033870156(1) dated 30.06.2021 for theAssessment Year 2015-16 2. The impugned notice under Section 148 of the Income TaxAct, 1961(in short, 'the Act;) dated 30.06.2021 is underchallenge in the present writ petition. 3. Assailing the said impugned notice, Ms.S.Sriniranjani,learned counsel appearing for the petitioner submits that, thisnotification of Section 147 followed by Section 148 notice https://hcservices.ecourts.gov.in/hcservices/ should not have been issued after 01.04.2021, in view of theamended provisions of Section 148A of the Act, as withoutexhausting the procedure contemplated under Section 148A, nonotice under 148 for reopening the assessment especially after01.04.2021, be issued. 4. Heard Mr.D.Prabhu Mukunth Arunkumar, learned JuniorStanding Counsel appearing for the respondent, who would alsosubmit that, if it is a proceedings under Section 147 of the Actfor reopening, for which, 148 notice is issued, which isimpugned herein and this has been issued on 30.06.2021 and thatis well after a cut off date i.e., 01.04.2021, the date onwhich, the amended provision namely 148A of the Act has comeinto effect, the writ petition can be disposed of in view of theearlier decision of this Court made in Muktha Foundations Pvt.Ltd. Vs. The Income Tax Officer in W.P.No.3235 of 2022 dated21.02.2022. 5. I have considered the said submission made by thelearned counsel appearing for both sides and have perused thematerials placed before this Court. 6. As has been rightly pointed out by the learned counselappearing for the petitioner and has been fairly endorsed by thelearned Standing Counsel appearing for the respondent/Revenue,that the issue raised in this writ petition has already beenconsidered in the aforesaid decision, where I had an occasion toconsider the issue and pass the following order: ''2. In order to initiate proceedings foropening of the assessment under Section 147 ofthe Income Tax Act, 1961 (in short -the Act-).Notice under Section 148 of the Act was issueddated 30.06.2021 to the assessee. The saidnotice is under challenge herein on the soleground that, since the provision has gotamended under Section 148A, which comes intoeffect from 01.04.2021, in which, the procedurecontemplated under the amended provision has tobe followed before issuing notice under Section148 of the Act. 3. However, the cases where if Section 148notice were issued on or before 31.03.2021, theearlier unamended provision would apply. Onthat ground, since the impugned notice underSection 148 of the Act has been issued on31.06.2021, admittedly, without following theprocedure contemplated under the amendedprovision, it is vitiated and citing this 3. However, the cases where if Section 148notice were issued on or before 31.03.2021, theearlier unamended provision would apply. Onthat ground, since the impugned notice underSection 148 of the Act has been issued on31.06.2021, admittedly, without following theprocedure contemplated under the amendedprovision, it is vitiated and citing this reason, Mr.G.Baskar, learned counsel appearingfor the petitioner would submit that, theimpugned notice would not stand in the legalscrutiny and it is liable to be set aside. 4. Heard Mrs.Hema Muralikrishnan, learnedSenior Standing Counsel appearing for therespondent, who would submit that, in fact, theissue had been considered in a batch of writpetitions by the First Bench of this Court andit was decided on 04.02.2022 in the matter ofVellore Institute of Technology Vs. The CentralBoard of Direct Taxes and another inW.P.No.15019 of 2021 etc. batch, where, theDivision Bench has passed the following order: ''19. In view of the ratio propounded bythe Allahabad and Delhi High Courts onthe subject, the reassessment noticesunder Section 148 of the Act of 1961served on the petitioners on or after1.4.2021 are set aside having been issuedin reference to the unamended provisionsand the Explanations are to be read asapplicable to reassessment proceedings ifinitiated on or prior to 31.3.2021, butit would be with liberty to the assessingauthorities to initiate reassessmentproceedings in accordance with theprovisions of the Act of 1961, as amendedby the Finance Act, 2021, after makingall the compliances as required by law,if limitation for it survives.'' 5. In view of the said judgment, since thisnotice under Section 148 of the Act wasissued / dated 30.06.2021 without following theamending provisions under Section 148A,therefore, it is covered under the saiddecision of the Division Bench, she contended.'' 6. Having considered the said submissionmade by the learned counsel appearing for bothsides and having gone through the said judgmentof the Division Bench of this Court referred toabove, as admittedly the impugned notice underSection 148 of the Act was issued on 30.06.2021or dated 30.06.2021 without following theprocedure made through the amended provision ofSection 148A, this Court has no hesitation to hold that, the impugned notice shall not standin the legal scrutiny, therefore, it is liableto be set aside. Accordingly, the impugnednotice is set aside. However, it is open to theRevenue to issue fresh notice as per theamended provision, as has been indicated in thesaid Division Bench judgment dated 04.02.2022. 7. With the above observation, this WritPetitionisdisposedof.Nocosts.Consequently, connected miscellaneous petitionsare closed.'' 7. In view of the aforesaid judgment and by consideringthe factual matrix of this case, where notice under Section 148of the Act has been issued on 30.06.2021 and it is not the casearising out of search under 132 of the Act, without exhaustingthe procedure contemplated under Section 148A of the Act, thisCourt has no hesitation to hold that the impugned notice shallnot stand in the legal scrutiny, therefore this writ petition isdisposed of with the following orders: ●That the impugned notice dated 30.06.2021 is set aside.However it is open to the Revenue if they are advised todo so, to initiate proceedings against the petitioner byadopting the procedure contemplated under Section 148A ofthe Act. 8. With these observations and directions, this WritPetition is ordered accordingly. No costs. Connectedmiscellaneous petition is closed. Sd/-Assistant Registrar(CCC) //True Copy// sp/mpTo Sub Assistant Registrar The Assistant Commissioner of Income Tax,Corporate Circle 4(1),121, Mahatma Gandhi Road,Nungambakkam, Chennai – 600 034. ●That the impugned notice dated 30.06.2021 is set aside.However it is open to the Revenue if they are advised todo so, to initiate proceedings against the petitioner byadopting the procedure contemplated under Section 148A ofthe Act. 8. With these observations and directions, this WritPetition is ordered accordingly. No costs. Connectedmiscellaneous petition is closed. Sd/-Assistant Registrar(CCC) //True Copy// sp/mpTo Sub Assistant Registrar The Assistant Commissioner of Income Tax,Corporate Circle 4(1),121, Mahatma Gandhi Road,Nungambakkam, Chennai – 600 034. +1cc to M/s.Hema Muralikrishnan, Advocate, S.R.No.15446+1cc to Mr.S.Srinirajani, Advocate, S.R.No.15176W.P.No.5162 of 2022GP(CO)CT 21/04/2022 https://hcservices.ecourts.gov.in/hcservices/