Pushpadham Commodities Ltd v. Income Tax Officer & Ors

28.04.2022. p.b.Sl. No.45. W.P.A. 7150 of 2022 Pushpadham Commodities Ltd. Vs.Income Tax Officer & Ors. Mr. Avra Mazumdar,Mr. Sk. Md. Bilwal Hossain,Mr. Binayak Gupta. ……..for the petitioner. Mr. Aryak Dutt. ……..for the UOI. Heard learned advocates appearing for the parties.Petitioner is aggrieved by the issuance of impugnednotice under section 148 of the Income Tax Act, 1961 onthe grounds that the same is barred by limitation and thatthe respondent-income tax authority concerned, beforeissuing the impugned notices under section 148 of theIncome Tax Act, 1961 have not observed the statutoryformalities under section 148A of the 1961 Act asprescribed by the Finance Act, 2021 which are applicablewith effect from 1[st] April 2021 before issuance of noticesunder section 148 of the 1961 Act on or after 1[st] April2021. Issues arising in the present writ petition is purelylegal, and in this writ petition the assessee/petitioner hassought relief of quashing of the impugned re-assessmentnotice issued post-31[st] March 2021 by the respondent- income tax authority concerned under section 148 of theAct, assessee/petitioner has also sought relief by way of adeclaration declaring Explanations A(a)(ii)/A(b) to theNotification No.20 [S.O. 1432(E)] dated 31[st] March 2021and Notification No.38 [S.O.1703(E)] dated 27[th] April 2021to the extent that the same extend the applicability of the“provisions of section 148, section 149 and section 151 ofthe Act, as the case may be, as they stood as on the 31[st]March 2021, before the commencement of the Finance Act,2021” to the period beyond 31[st] March 2021 as ultra viresthe parent legislation, viz., the Taxation and Other Laws(Relaxation and Amendment of Certain Provisions) Act,2020 (hereinafter referred to as the ‘Relaxation Act, 2020’). At the outset, all the counsel appearing for theparties jointly submitted that the issues involved in thiswrit petition is covered by a decision of the Division Benchof the Allahabad High Court dated September 30, 2021 inthe case of Ashok Kumar Agarwal v. Union of Indiathrough its Revenue Secretary North Block & Ors.(Writ Tax No.524/2021) decided in favour of theassessee/petitioner and an order of Rajasthan High Courtdated November 25, 2021 in the case of Bpip InfraPrivate Limited v. Income Tax Officer, Ward 4(1),Jaipur (S.B. Civil Writ Petition No. 13297/2021) andalso an order of Delhi High Court dated December 15,2021 in the case of Man Mohan Kohli v. Assistant Commissioner of Income Tax & Anr. [W.P.(C) 6176 of2021] and the judgement and order of this court datedJanuary 17, 2022 in the case of Manoj Jain v. Union ofIndia & Ors. (WPA No.11950 of 2021) and in the case ofBagaria Properties and Investment Private Limited &Anr. (WPO No.244 of 2021). In view of the judgement and order of this courtdated January 17, 2022 in the case of Manoj Jain v. Unionof India & Ors. in WPA No.11950 of 2021 and in the caseof Bagaria Properties and Investment Private Limited & Anr.(WPO No.244 of 2021), this writ petition being WPANo.7150 of 2022 is disposed of by allowing the same.Explanations A(a)(ii)/A(b) to the Notifications dated 31[st]March 2021 and 27[th] April 2021 are declared to be ultravires the Relaxation Act, 2020 and are, therefore, bad inlaw and null and void. Accordingly, the impugned notice under section148 of the Income Tax Act, 1961 is quashed with liberty tothe assessing officers concerned to initiate fresh re-assessment proceedings in accordance with the relevantprovisions of the Act as amended by the Finance Act, 2021and after making compliance of the formalities as requiredby the law. This writ petition is allowed subject to payment ofcosts of Rs.5,000/- to the Calcutta High Court BarAssociation Lawyers’Benevolent Fund, since the impugned Accordingly, the impugned notice under section148 of the Income Tax Act, 1961 is quashed with liberty tothe assessing officers concerned to initiate fresh re-assessment proceedings in accordance with the relevantprovisions of the Act as amended by the Finance Act, 2021and after making compliance of the formalities as requiredby the law. This writ petition is allowed subject to payment ofcosts of Rs.5,000/- to the Calcutta High Court BarAssociation Lawyers’Benevolent Fund, since the impugned notice under section 148 of the Income Tax Act, 1961 hasbeen issued on April 12, 2021 as appears from record andthis writ petition has been filed in April 2022, that is,almost after ten months from receipt of the impugnednotice, without any explanation for such delay in filing thiswrit petition. Such costs has to be paid by the petitionerto the Calcutta High Court Bar Association Lawyers’Benevolent Fund within seven days from date which is tobe utilised by it for the benefit and welfare of the childrenstaying with their parents in the correctional home in WestBengal. Receipt of payment is to be produced before thiscourt. List this writ petition under the heading “To BeMentioned” on May 10, 2022 for compliance. (Md. Nizamuddin, J.)