Kanakkilianallur Narayana Reddiar Manivannan v. Assistant Commissioner Of Income Tax,Central Circle 3 (1),3[Rd] Floor, Investigation Building,New

WP.No.10276 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 08.11.2024 CORAM THE HONOURABLE Mr.JUSTICE C.SARAVANAN WP.No.10276 of 2022 and WMP.Nos.9983 & 9985 of 2022 Kanakkilianallur Narayana Reddiar Manivannan Vs. 1. Assistant Commissioner of Income Tax,Central Circle 3 (1),3[rd] Floor, Investigation Building,New No.46 (Old No.108),Mahatma Gandhi Road,Nungambakkam,Chennai-600 034. 2. Assistant Commissioner of Income Tax,Corporate Circle 2 (1),Corporate Circle 2 (1), Room No.511, V Floor, Wanaparthy Block,No.121, Mahathma Gandhi Road,Nungambakkam, Chennai-600 034. ... Petitioner ... Respondents Writ Petition is filed under Article 226 of the Constitution of India, praying to issue a writ of Certiorari, calling for the records in DIN No:ITBA/AST/S/148/2021-22/1033736862(1) dated 28.06.2021 on the file of the 1[st] respondent relating to A.Y 2017-18 and quash the same. WP.No.10276 of 2022 ORDER This petitioner has challenged the impugned notice issued under Section 148 of the Income Tax Act on 28.06.2021. 2. The law has been amended with effect from 01.04.2021 by the Parliament vide Finance Act, 2021. As per the new regime, the complete mechanism has been prescribed under Section 148A of the Income Tax Act, 1961. A notice has to be issued under Section 148A (b) of the Income Tax Act, 1961 and thereafter, followed by a reply under Section 148A (c) and an speaking order under Section 148A (d) of the Act. 3. In this context, the Honble Supreme Court in Union of India v. Ashish Agarwal, [(2022) SCC OnLine SC 543] rendered its verdict on 04.05.2022 and has held as under:- “26. There is a broad consensus on the aforesaid aspects amongst the learned ASG appearing on behalf of the Revenue and the learned Senior Advocates/learned counsel appearing on behalf of the respective assessees. We are also of the opinion that if the aforesaid order is passed, it will strike a balance between the rights of the Revenue as well as the respective assessees as because of a bona fide belief of the officers of the Revenue in issuing approximately 90,000 such notices, the Revenue may not suffer as ultimately it is the public exchequer which would suffer. 27. ........................................................................ 28. In view of the above and for the reasons stated above, the present appeals are allowed in part. The impugned common judgments and orders [Ashok Kumar Agarwal v. Union of India, 2021 SCC OnLine All 799] passed by the High Court of Judicature at Allahabad in WT No. 524 of 2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under: 28.1. The impugned Section 148 notices issued to the respective assessees which were issued under unamended Section 148 of the IT Act, which were the subject-matter of writ petitions before the various respective High Courts shall be deemed to have been issued under Section 148-A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of Section 148-A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show-cause notices within two weeks thereafter. 28.2. The requirement of conducting any enquiry, if required, with the prior approval of specified authority under Section 148-A(a) is hereby dispensed with as a one-time measure vis-à-vis those notices which have been issued under Section 148 of the unamended Act from 1-4-2021 till date, including those which have been quashed by the High Courts 28.3. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the assessing officers concerned to hold any enquiry, if required. 28.2. The requirement of conducting any enquiry, if required, with the prior approval of specified authority under Section 148-A(a) is hereby dispensed with as a one-time measure vis-à-vis those notices which have been issued under Section 148 of the unamended Act from 1-4-2021 till date, including those which have been quashed by the High Courts 28.3. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the assessing officers concerned to hold any enquiry, if required. 28.4. The assessing officers shall thereafter pass orders in terms of Section 148-A(d) in respect of each of the assessees concerned; Thereafter after following the procedure as required under Section 148-A may issue notice under Section 148 (as substituted). 28.5. All defences which may be available to the assessees including those available under Section 149 of the IT Act and all rights and contentions which may be available to the assessees concerned and Revenue under the Finance Act, 2021 and in law shall continue to be available. 29. The present order shall be applicable PAN INDIA and all judgments and orders passed by the different High Courts on the issue and under which similar notices which were issued after 1-4- 2021 issued under Section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that the present order shall also govern the pending writ petitions, pending before various the High Courts in which similar notices under Section 148 of the Act issued after 1-4-2021 are under challenge. 30. The impugned common judgments and orders [Ashok Kumar Agarwal v. Union of India, 2021 SCC OnLine All 799] passed by the High Court of Allahabad and the similar judgments and orders passed by various High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the aforesaid extent only. 31. All these appeals are accordingly partly allowed to the aforesaid extent. In the facts of the case, there shall be no order as to costs.” 4. The Department has also complied with the above directions of this Court and passed assessment orders. Thus, notice issued under old regime is to be treated as notice issued under Section 148A (b) of the Act, as in force with effect from 01.04.2021. Therefore, this writ petition is liable to be WP.No.10276 of 2022 dismissed. 5. Accordingly, this writ petition stands dismissed. No costs. Consequently, connected WMPs are also closed. kmi 08.11.2024 Index: Yes/No Speaking Order/Non Speaking Order NCC: Yes/No. To 1. Assistant Commissioner of Income Tax, Central Circle 3 (1), 3[rd] Floor, Investigation Building, New No.46 (Old No.108),Mahatma Gandhi Road, Nungambakkam, Chennai-600 034. 2. Assistant Commissioner of Income Tax, Corporate Circle 2 (1), Room No.511, V Floor, Wanaparthy Block,No.121, Mahathma Gandhi Road, Nungambakkam, Chennai-600 034. https://www.mhc.tn.gov.in/judis7/7 WP.No.10276 of 2022 C.SARAVANAN, J.kmi WP.No.10276 of 2022 08.11.2024