Shell India Markets Private Limited) v. Union Of India

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONWRIT PETITION NO.3298 OF 2021 Shell India Markets Private Limited)having its address at Trent House, 1[st] Floor,)G-Block, Plot No.C-60, Bandra-Kurla Complex,)Bandra (E), Mumbai 400 051) ...Petitioner Vs. 1. Additional/Joint/Deputy/Assistant Commissioner)of Income Tax/Income Tax Officer,)National Faceless Assessment Centre, New Delhi)of Income Tax/Income Tax Officer,)National Faceless Assessment Centre, New Delhi)2. Deputy Commissioner of Income-tax, Circle 3(4),)29[th] Floor, World Trade Centre, Cuffe Parade,)Mumbai 400 005.)29[th] Floor, World Trade Centre, Cuffe Parade,)Mumbai 400 005.) 3. Union of India, through the Secretary,Department of Revenue, Ministry of Finance,Government of India, North Block, New Delhi-01Department of Revenue, Ministry of Finance,Government of India, North Block, New Delhi-01 ))) ...Respondents Mr. J. D. Mistri, Senior Advocate a/w. Mr. Madhur Agrawal, Ms. SheejaJohn and Ms. Radhika Nair i/b. M. P. Savla & Company for Petitioner.Mr. Suresh Kumar for Respondents. CORAM : K. R. SHRIRAM &N. J. JAMADAR, JJ.DATE :FEBRUARY 14, 2022 ORAL JUDGMENT:- (Per K. R. Shriram, J.) Petitioner is in the business of retailing petroleum products andsupplying lubricants. 2.Petitioner is challenging an assessment order dated 30[th] September2021 passed by respondent No.1 under Section 143(3) read with Section144C(13) and Section 144B of the Income Tax Act, 1961 (the Act) forAssessment Year 2016-17. It is petitioner’s case that the assessment order isex-facie illegal and contrary to provisions of the Act. 3.Petitioner filed original return of income for Assessment Year 2016-17 on 30[th] November 2016. Petitioner’s case was selected for scrutiny assessment vide notice dated 19[th] September 2017 issued by respondent No.2under Section 143(2) of the Act. Respondent No.2 passed a draft assessmentorder dated 26[th] December 2019 under Section 143(3) read with Section144C(1) [incorrectly mentioned as Section 144C(13)] making certainadditions as proposed by Transfer Pricing Officer (TPO), who had passed anorder under Section 92CA(4) of the Act on 29[th] October 2019 proposing anadjustment of Rs.375,65,17,639/-. Petitioner filed its objections before theDispute Resolution Panel (DRP) challenging the validity of the draftassessment order on 24[th] January, 2020. As per the provisions of sub-section(11) of Section 144C of the Act, the DRP is required to issue directionsunder Section 144C(5) of the Act within a period of nine months from theend of the month in which the draft assessment order is received bypetitioner. Petitioner had received the draft assessment order on 26[th]December 2019 and, therefore, the DRP had time upto 30[th] September 2020to issue directions. 4.On 29[th] September 2020, a gazette notification was published by theGovernment of India under which an Act to provide for relaxation andamendment of provisions of certain Acts and for matters connectedtherewith or incidental thereto called The Taxation and Other Laws(Relaxation and Amendment of Certain Provisions) Act, 2020 (hereinafterreferred to as the ‘Relaxation Act’) came into force with effect from 31[st]March 2020. In view of provisions of Section 3 of the Relaxation Act, thetime-limit for the DRP to issue directions came to be extended till 31[st]March, 2021. The DRP issued its directions on 20[th] March 2021 underSection 144C(5) of the Act. The directions were sent to respondent No.2 aswell as to the jurisdictional Commissioner of Income Tax. 4.On 29[th] September 2020, a gazette notification was published by theGovernment of India under which an Act to provide for relaxation andamendment of provisions of certain Acts and for matters connectedtherewith or incidental thereto called The Taxation and Other Laws(Relaxation and Amendment of Certain Provisions) Act, 2020 (hereinafterreferred to as the ‘Relaxation Act’) came into force with effect from 31[st]March 2020. In view of provisions of Section 3 of the Relaxation Act, thetime-limit for the DRP to issue directions came to be extended till 31[st]March, 2021. The DRP issued its directions on 20[th] March 2021 underSection 144C(5) of the Act. The directions were sent to respondent No.2 aswell as to the jurisdictional Commissioner of Income Tax. 5.Respondent No.1 issued a notice dated 25[th] March 2021 underSection 142(1) of the Act calling upon petitioner to furnish variousinformation. By a letter dated 30[th] March 2021, petitioner informedrespondent No.1 that the DRP has already passed its directions under sub-section (5) of Section 144C of the Act. Respondent No.1 issued noticedated 26[th] September 2021 to petitioner asking certain information. Petitioner replied by an email on 28[th] September 2021. Without consideringthe notice dated 26[th] September 2021 and petitioner’s reply dated 28[th]September 2021, the impugned order dated 30[th] September 2021 came to bepassed by respondent No.1 under Section 143(3) read with Section144C(13) and Section 144B of the Act. This was followed by the demandnotice under Section 156 of the Act and the penalty notice under Section274 read with Section 270A of the Act, both dated 30[th] September 2021,from respondent No.1. 6.It is petitioner’s case that under Section 144C(13) of the Act,respondent No.1 had to complete the assessment within one month from theend of the month in which such direction is received by him from the DRP.Admittedly, the DRP’s directions were received on 20[th] March 2021, whichmeans, the date by which the Assessing Officer should have completed theassessment should have been 30[th] April 2021. Since the assessment orderhas been passed only on 30[th] September 2021, the entire assessment order isex-facie illegal. 7.Respondent has filed an affidavit in reply in which respondent hasrelied upon three notifications issued by the Central Board of Direct Taxes(CBDT) being Notification No.20/2021 dated 31[st] March 2021, NotificationNo.38/2021 dated 27[th] April 2021 and Notification No.74/2021 dated 25[th]June 2021 to submit that the time-limit to complete assessment has beenextended upto 30[th] September 2021 and since the assessment order has beenpassed on 30[th] September 2021, there was nothing illegal about it. 8.Therefore, the short points that we have to consider and decide inthis petition are - (a) whether the petitioner’s case is covered under theRelaxation Act? and (b) whether the time to complete assessment underSection 144C(13) in petitioner’s case could be stated to have been extendedtill 30[th] September 2021? 9.Before we proceed further, it will be useful to reproduce the relevantprovisions. A.Section 144C of the Act reads as under:- “144C.(1) to (4)* *** (5)The Dispute Resolution Panel shall, in a case where anyobjection is received under sub-section (2), issue such directions,as it thinks fit, for the guidance of the Assessing Officer to enablehim to complete the assessment. (6) to (11)**** (12)No direction under sub-section (5) shall be issued afternine months from the end of the month in which the draft order isforwarded to the eligible assessee. (13)Upon receipt of the directions issued under sub-section (5),the Assessing Officer shall, in conformity with the directions,complete, notwithstanding anything to the contrary contained insection 153 or section 153B, the assessment without providingany further opportunity of being heard to the assessee, within onemonth from the end of the month in which such direction isreceived.” “144C.(1) to (4)* *** (5)The Dispute Resolution Panel shall, in a case where anyobjection is received under sub-section (2), issue such directions,as it thinks fit, for the guidance of the Assessing Officer to enablehim to complete the assessment. (6) to (11)**** (12)No direction under sub-section (5) shall be issued afternine months from the end of the month in which the draft order isforwarded to the eligible assessee. (13)Upon receipt of the directions issued under sub-section (5),the Assessing Officer shall, in conformity with the directions,complete, notwithstanding anything to the contrary contained insection 153 or section 153B, the assessment without providingany further opportunity of being heard to the assessee, within onemonth from the end of the month in which such direction isreceived.” B.Section 3 of the Relaxation Act reads as under:- “3.(1) Where, any time-limit has been specified in, or prescribedor notified under, the specified Act which falls during the periodfrom the 20[th] day of March, 2020 to the 31[st] day of December,2020, or such other date after the 31[st] day of December, 2020, asthe Central Government may, by notification, specify in thisbehalf, for the completion or compliance of such action as- (a) completion of any proceeding or passing of any orderor issuance of any notice, intimation, notification, sanction orapproval, or such other action, by whatever name called, by anyauthority, commission or tribunal, by whatever name called, underthe provisions of the specified Act; or * * *** and where completion or compliance of such action has beenmade within such time, then, the time-limit for completion orcompliance of such action shall, notwithstanding anythingcontained in the specified Act, stand extended to the 31[st] day ofMarch, 2021, or such other date after the 31[st] day of March, 2021,as the Central Government may, by notification, specify in thisbehalf: Provided that the Central Government may specifydifferent dates for completion or compliance of different actions: ** *** ” C. Notification No.20/2021 dated 31[st] March 2021 reads as under:- “ MINISTRY OF FINANCE(Department of Revenue)(CENTRAL BOARD OF DIRECT TAXES)NOTIFICATION New Delhi, the 31st March, 2021 S.O. 1432(E).—In exercise of the powers conferred by sub-section (1) of section3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions)Act, 2020 (38 of 2020) (hereinafter referred to as the said Act), and in partialmodification of the notification of the Government of India in the Ministry of Finance,(Department of Revenue) No.93/2020 dated the 31[st] December, 2020, published in theGazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O.4805(E), dated the 31[st] December, 2020, the Central Government hereby specifies that,––-(A)where the specified Act is the Incometax Act, 1961 (43 of 1961) (hereinafterreferred to as the Income-tax Act) and, — -(a)the completion of any action referred to in clause (a) of subsection (1) of-section 3 of the Act relates to passing of an order under subsection (13) ofsection 144Cor issuance of notice under section 148 as per time-limit specifiedin section 149 or sanction under section 151 of the Income-tax Act, — (i) the 31st day of March, 2021 shall be the end date of the period duringwhich the time-limit, specified in, or prescribed or notified under, theIncome-tax Act falls for the completion of such action; and (ii) the 30th day of April, 2021 shall be the end date to which the time-limit for the completion of such action shall stand extended. -(a)the completion of any action referred to in clause (a) of subsection (1) of-section 3 of the Act relates to passing of an order under subsection (13) ofsection 144Cor issuance of notice under section 148 as per time-limit specifiedin section 149 or sanction under section 151 of the Income-tax Act, — (i) the 31st day of March, 2021 shall be the end date of the period duringwhich the time-limit, specified in, or prescribed or notified under, theIncome-tax Act falls for the completion of such action; and (ii) the 30th day of April, 2021 shall be the end date to which the time-limit for the completion of such action shall stand extended. Explanation.— For the removal of doubts, it is hereby clarified that for thepurposes of issuance of notice under section 148 as per time-limit specified insection 149 or sanction under section 151 of the Income-tax Act, under this sub-clause, the provisions of section 148, section 149 and section 151 of the Income-tax Act, as the case may be, as they stood as on the 31[st] day of March 2021,before the commencement of the Finance Act, 2021, shall apply. (b)the compliance of any action referred to in clause (b) of sub-section (1)of section 3 of the said Act relates to intimation of Aadhaar number to theprescribed authority under sub-section (2) of section 139AA of the Income-taxAct, the time-limit for compliance of such action shall stand extended to the 30[th]day of June, 2021. (B)where the specified Act is the Chapter VIII of the Finance Act, 2016 (28 of 2016)(hereinafter referred to as the Finance Act) and the completion of any action referred toin clause (a) of sub-section (1) of section 3 of the said Act relates to sending anintimation under sub-section (1) of section 168 of the Finance Act, — (i) the 31[st] day of March, 2021 shall be the end date of the period duringwhich the time-limit, specified in, or prescribed or notified under, theFinance Act falls for the completion of such action; and (ii) the 30[th] day of April, 2021 shall be the end date to which the time-limit for the completion of such action shall stand extended. [Notification No. 20/2021/F. No. 370142/35/2020-TPL]SHEFALI SINGH, Under Secy., Tax Policy and Legislation Division Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide S.O. No. 4805 dated 31 st December, 2020.Sub-section (ii) vide S.O. No. 4805 dated 31 st December, 2020. (emphasis supplied)” D.Notification No.38/2021 dated 27[th] April 2021 reads as under:-“ MINISTRY OF FINANCE(Department of Revenue)(CENTRAL BOARD OF DIRECT TAXES)NOTIFICATION New Delhi, the 27th April, 2021 S.O. 1703(E).— In exercise of the powers conferred by sub-section (1) ofsection 3 of the Taxation and Other Laws (Relaxation and Amendment of CertainProvisions) Act, 2020 (38 of 2020) (hereinafter referred to as the said Act), and in partialmodification of the notifications of the Government of India in the Ministry of Finance,(Department of Revenue) No. 93/2020 dated the 31[st] December, 2020, No. 10/2021dated the 27[th] February, 2021 and No. 20/2021 dated the 31st March, 2021, published inthe Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O.4805(E), dated the 31[st] December, 2020, vide number S.O. 966(E) dated the 27[th]February, 2021 and vide number S.O. 1432(E) dated the 31[st] March, 2021, respectively(hereinafter referred to as the said notifications), the Central Government hereby-—specifies for the purpose of subsection (1) of section 3 of the said Act that, -(A)where the specified Act is the Incometax Act, 1961 (43 of 1961) (hereinafterreferred to as the Income-tax Act) and, — -(A)where the specified Act is the Incometax Act, 1961 (43 of 1961) (hereinafterreferred to as the Income-tax Act) and, — (a) the completion of any action, referred to in clause (a) of sub-section (1) ofsection 3 of the said Act, relates to passing of any order for assessment orreassessment under the Income-tax Act, and the time limit for completion ofsuch action under section 153 or section 153B thereof, expires on the 30[th]day of April, 2021 due to its extension by the said notifications, such timelimit shall further stand extended to the 30[th] day of June, 2021;section 3 of the said Act, relates to passing of any order for assessment orreassessment under the Income-tax Act, and the time limit for completion ofsuch action under section 153 or section 153B thereof, expires on the 30[th]day of April, 2021 due to its extension by the said notifications, such timelimit shall further stand extended to the 30[th] day of June, 2021; (b) the completion of any action, referred to in clause (a) of subsection (1) ofsection 3 of the said Act, relates to passing of an order under sub-section(13) of section 144C of the Income-tax Act or issuance of notice undersection 148 as per time-limit specified in section 149 or sanction undersection 151 of the Income-tax Act, and the time limit for completion of suchaction expires on the 30th day of April, 2021 due to its extension by the saidnotifications, such time limit shall further stand extended to the 30th day ofJune, 2021.section 3 of the said Act, relates to passing of an order under sub-section(13) of section 144C of the Income-tax Act or issuance of notice undersection 148 as per time-limit specified in section 149 or sanction undersection 151 of the Income-tax Act, and the time limit for completion of suchaction expires on the 30th day of April, 2021 due to its extension by the saidnotifications, such time limit shall further stand extended to the 30th day ofJune, 2021. Explanation.— For the removal of doubts, it is hereby clarified that for the purposes ofissuance of notice under section 148 as per time-limit specified in section 149 or sanctionunder section 151 of the Income-tax Act, under this sub-clause, the provisions of section148, section 149 and section 151 of the Income-tax Act, as the case may be, as they stoodas on the 31[st] day of March 2021, before the commencement of the Finance Act, 2021,shall apply. (B)where the specified Act is the Chapter VIII of the Finance Act, 2016 (28 of 2016)(hereinafter referred to as the Finance Act) and the completion of any action, referred toin clause (a) of sub-section (1) of section 3 of the said Act, relates to sending anintimation under sub-section (1) of section 168 of the Finance Act, and the time limit forcompletion of such action expires on the 30[th] day of April, 2021 due to its extension bythe said notifications, such time limit shall further stand extended to the 30[th] day of June,2021. [Notification No. 38 /2021/ F. No. 370142/35/2020-TPL]RAJESH KUMAR BHOOT, Jt. Secy. Tax Policy & Legislation Division Note:The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide S.O. No. 4805 dated 31st December, 2020.Sub-section (ii) vide S.O. No. 4805 dated 31st December, 2020. (emphasis supplied)” E.Notification No.74/2021 dated 25[th] June 2021 reads as under- “ MINISTRY OF FINANCE (Department of Revenue)(CENTRAL BOARD OF DIRECT TAXES)NOTIFICATION New Delhi, the 25th June, 2021 [Notification No. 38 /2021/ F. No. 370142/35/2020-TPL]RAJESH KUMAR BHOOT, Jt. Secy. Tax Policy & Legislation Division Note:The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide S.O. No. 4805 dated 31st December, 2020.Sub-section (ii) vide S.O. No. 4805 dated 31st December, 2020. (emphasis supplied)” E.Notification No.74/2021 dated 25[th] June 2021 reads as under- “ MINISTRY OF FINANCE (Department of Revenue)(CENTRAL BOARD OF DIRECT TAXES)NOTIFICATION New Delhi, the 25th June, 2021 S.O. 2580(E).—In exercise of the powers conferred by sub-section (1) of section3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions)Act, 2020 (38 of 2020) (hereinafter referred to as the said Act), and in partialmodification of the notifications of the Government of India in the Ministry of Finance,(Department of Revenue) No. 93/2020 dated the 31[st] December, 2020, published in theGazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O.4805(E), dated the 31[st] December, 2020 and No. 10/2021 dated the 27[th] February, 2021,published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii),videnumber S.O. 966(E) dated the 27[th] February, 2021 and No. 20/2021 dated the 31st March,2021, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii),vide number S.O 1432(E) dated the 31[st] March, 2021 and No. 38/2021 dated 27th April,2021, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii),vide number S.O. 1703(E) dated the 27[th] April, 2021, (hereinafter referred to as the said-notifications), the Central Government hereby specifies for the purpose of subsection (1)of section 3 of the said Act, that, — -(A)where the specified Act is the Incometax Act, 1961 (43 of 1961) (hereinafterreferred to as the Income-tax Act) and,— (i) the completion of any action, referred to in clause (a) of subsection (1) ofsection 3 of the said Act, relates to passing of any order,-section 3 of the said Act, relates to passing of any order,- (a) for assessment or reassessment under the Income-tax Act, and the timelimit for completion of such action under section 153 or section 153B thereof,expires on the 30th day of June, 2021 due to its extension by the saidnotifications, such time limit shall further stand extended to the 30th day ofSeptember, 2021; (b) for imposition of penalty under Chapter XXI of the Income-tax Act,— (i) the 29[th] day of September, 2021 shall be the end date of the periodduring which the time limit specified in, or prescribed or notified under,the Income-tax Act falls for the completion of such action; andduring which the time limit specified in, or prescribed or notified under,the Income-tax Act falls for the completion of such action; and (ii) the 30[th] day of September, 2021 shall be the end date to which thetime limit for completion of such action shall stand extended; (ii) the compliance of any action, referred to in clause (b) of sub-section (1) ofsection 3 of the said Act, relates to intimation of Aadhaar number to theprescribed authority under sub-section (2) of section 139AA of the Income-taxAct, the time-limit for such the compliance of such action shall stand extended tothe 30[th] day of September, 2021; (B)where the specified Act is the Chapter VIII of the Finance Act, 2016 (28 of 2016)(hereinafter referred to as the Finance Act) and the completion of any action, referred to inclause (a) of sub-section (1) of section 3 of the said Act, relates to sending an intimationunder sub-section (1) of section 168 of the Finance Act, and the time limit for completionof such action expires on the 30[th] June, 2021 due to its extension by the said notifications,such time limit shall further stand extended to the 30[th] day of September, 2021. (B)where the specified Act is the Chapter VIII of the Finance Act, 2016 (28 of 2016)(hereinafter referred to as the Finance Act) and the completion of any action, referred to inclause (a) of sub-section (1) of section 3 of the said Act, relates to sending an intimationunder sub-section (1) of section 168 of the Finance Act, and the time limit for completionof such action expires on the 30[th] June, 2021 due to its extension by the said notifications,such time limit shall further stand extended to the 30[th] day of September, 2021. [Notification No. 74/2021/ F. No. 370142/35/2020-TPL]SHEFALI SINGH, Under Secy., Tax Policy and Legislation Division Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii)vide S.O.No. 4805(E) dated 31[st] December, 2020 and was last amended vide S.O.1703(E) dated 27[th] April,2021. (emphasis supplied)” 10.Sub-section (13) of Section 144C, therefore, is very clear inasmuchas the Assessing Officer shall, upon receipt of the directions issued undersub-section (5), in conformity with the directions, complete the assessmentwithin one month from the end of the month in which such direction isreceived. Sub-section (13) also provides that the Assessing Officer cancomplete the assessment without providing any further opportunity ofbeing heard to the assessee. This means that the moment the AssessingOfficer receives the directions under sub-section (5), he has to straightawaycomplete the assessment and he does not even have to hear the assessee.The Assessing Officer shall simply comply with the directions receivedfrom the DRP within one month from the end of the month in which suchdirection is received. 11.Mr. Mistri, Counsel for petitioner, submitted as under:- (a)The three notifications, on which reliance has been placed tocomplete the assessment, do not extend the time-limit forrespondent No.1 to pass the impugned final assessment orderunder Section 144C(13) of the Act and, therefore, the orderdated 30[th] September 2021 impugned in this petition is clearlywithout jurisdiction and beyond the time-limit provided underthe Act for completion of the assessment proceedings.complete the assessment, do not extend the time-limit forrespondent No.1 to pass the impugned final assessment orderunder Section 144C(13) of the Act and, therefore, the orderdated 30[th] September 2021 impugned in this petition is clearlywithout jurisdiction and beyond the time-limit provided underthe Act for completion of the assessment proceedings. (b) Section 3(1) of the Relaxation Act extends the time-limit withrespect to an act, for which limitation falls between 20[th] March2020 and 31[st] December 2020 and as the petitioner’s case doesnot fall under Section 3 of the Relaxation Act as the time-limitfor passing the final order does not fall within the periodbetween 20[th] March 2020 and 31[st] December 2020, theprovisions of Section 3(1) of the Relaxation Act are notapplicable to petitioner.respect to an act, for which limitation falls between 20[th] March2020 and 31[st] December 2020 and as the petitioner’s case doesnot fall under Section 3 of the Relaxation Act as the time-limitfor passing the final order does not fall within the periodbetween 20[th] March 2020 and 31[st] December 2020, theprovisions of Section 3(1) of the Relaxation Act are notapplicable to petitioner. (c)Notification No.20/2021 issued on 31[st] March 2021 is alsoinapplicable as the said notification is applicable only to caseswhere the time-limit for completion of any action includingpassing of the order under Section 144C(13) of the Act wasinapplicable as the said notification is applicable only to caseswhere the time-limit for completion of any action includingpassing of the order under Section 144C(13) of the Act was (c)Notification No.20/2021 issued on 31[st] March 2021 is alsoinapplicable as the said notification is applicable only to caseswhere the time-limit for completion of any action includingpassing of the order under Section 144C(13) of the Act wasinapplicable as the said notification is applicable only to caseswhere the time-limit for completion of any action includingpassing of the order under Section 144C(13) of the Act was upto 31[st] March 2021. In petitioner’s case, as time-limit forcompletion of assessment under Section 144C(13) of the Actwas upto 30[th] April 2021, Notification No.20/2021 is clearlyinapplicable to the facts of the present case. (d) Notification No.38/2021 issued on 27[th] April 2021 is alsoinapplicable to petitioner’s case because it applies only to caseswhere the time-limit was expiring on 30[th] April 2021 “due to itsextension by earlier notifications”. In the present case, althoughthe time-limit is expiring on 30[th] April 2021 for the AssessingOfficer to complete assessment and pass an order under Section144C(13) of the Act as the time-limit was not expiring on 30[th]April 2021 “due to an earlier notification” but on applicabilityof Section 144C(13) itself, petitioner’s case does not fall withinthe ambit of Notification No.38/2021.inapplicable to petitioner’s case because it applies only to caseswhere the time-limit was expiring on 30[th] April 2021 “due to itsextension by earlier notifications”. In the present case, althoughthe time-limit is expiring on 30[th] April 2021 for the AssessingOfficer to complete assessment and pass an order under Section144C(13) of the Act as the time-limit was not expiring on 30[th]April 2021 “due to an earlier notification” but on applicabilityof Section 144C(13) itself, petitioner’s case does not fall withinthe ambit of Notification No.38/2021. (e)Notification No.74/2021 dated 25[th] June 2021 is alsoinapplicable to the facts of the present case because it extendsthe time-limit only with reference to the actions to becompleted within the time-limits specified in Section 153 orSection 153B of the Act. Since in the present case, time-limit isneither prescribed in Section 153 nor in Section 153B of theAct but the time-limit in the present case is prescribed underSection 144C(13) of the Act, clearly, Notification No.74/2021issued on 25[th] June 2021 is inapplicable so as to extend anytime-limit for passing the impugned order.inapplicable to the facts of the present case because it extendsthe time-limit only with reference to the actions to becompleted within the time-limits specified in Section 153 orSection 153B of the Act. Since in the present case, time-limit isneither prescribed in Section 153 nor in Section 153B of theAct but the time-limit in the present case is prescribed underSection 144C(13) of the Act, clearly, Notification No.74/2021issued on 25[th] June 2021 is inapplicable so as to extend anytime-limit for passing the impugned order. 12.Mr. Suresh Kumar, per contra, very firmly opposed the petition andsubmitted as under:-submitted as under:- (a)The order impugned in the petition has been passed within thetime prescribed as extended by the Relaxation Act read with thenotifications issued under the said Act.time prescribed as extended by the Relaxation Act read with thenotifications issued under the said Act. (b) The notifications under the Relaxation Act were issued by theGovernment of India to mitigate the problems of the tax-payersand the common citizens in general caused by lock-down andGovernment of India to mitigate the problems of the tax-payersand the common citizens in general caused by lock-down and restrictions due to Covid-19 pandemic. The same yardstickapplies to the government officers and officials who were alsoprevented from working in normal conditions. The Governmenttried its best to save the citizens including tax-payers andofficers of the government departments and hence, theprovision should be given a purposive interpretation. (b) The notifications under the Relaxation Act were issued by theGovernment of India to mitigate the problems of the tax-payersand the common citizens in general caused by lock-down andGovernment of India to mitigate the problems of the tax-payersand the common citizens in general caused by lock-down and restrictions due to Covid-19 pandemic. The same yardstickapplies to the government officers and officials who were alsoprevented from working in normal conditions. The Governmenttried its best to save the citizens including tax-payers andofficers of the government departments and hence, theprovision should be given a purposive interpretation. (c)Subsequent to the directions issued by DRP on 20[th] March2021, the Assessing Officer had to pass the consequential orderon or before 30[th] April 2021. Therefore, the Assessing Officercould have passed the consequential order by 31[st] March 2021also. In other words, the Assessing Officer had time from 21[st]March 2021, having received DRP directions on 20[th] March2021, upto 30[th] April 2021 to pass the consequential order. Asper the Notification No.20/2021 of 31[st] March 2021, thelimitation dates were extended to 30[th] April 2021, thereaftervide Notification No.38/2011 dated 27[th] April 2021, the datewas extended to 30[th] June 2021 and again it was furtherextended to 30[th] September 2021 by Notification No.74/2021 of25[th] June 2021. (d) Notification No.74 of 2021 of 25[th] June 2021 says “forassessment or re-assessment under the Income-tax Act, and thetime-limit for completion of such action under Section 153 orSection 153B thereof…”. To give purposive interpretation, theword ‘and’ used should be read as “or”.assessment or re-assessment under the Income-tax Act, and thetime-limit for completion of such action under Section 153 orSection 153B thereof…”. To give purposive interpretation, theword ‘and’ used should be read as “or”. (e)In view of the above, passing of order under Section 143(3)read with Section 144C(13) and Section 144B of the Act dated30[th] September 2021 was also covered under the RelaxationAct, which is within the extended period under the notificationsissued by CBDT under the Relaxation Act.read with Section 144C(13) and Section 144B of the Act dated30[th] September 2021 was also covered under the RelaxationAct, which is within the extended period under the notificationsissued by CBDT under the Relaxation Act. 13.Heard the Counsel and also considered the petition, documentsannexed thereto and the affidavit in reply. Though the petition is listed foradmission, with the consent of the parties, since pure question of law is involved, we decided to dispose the petition at the admission stage itself. 14.We are inclined to agree with the submissions made by Mr. Mistri.We would also add that there was no dispute that the Assessing Officer, butfor the Relaxation Act and the notifications issued therein, had to completethe assessment under Section 144C(13) latest by 30[th] April 2021. 15.Sub-section (1) of Section 3 of the Relaxation Act extends the time-limit with respect to an act for which limitation falls between the periodfrom 20[th] March 2020 to 31[st] December 2020. Since the directions of DRPwere issued and received by Assessing Officer only on 20[th] March 2021,petitioner’s case does not fall under sub-section (1) of Section 3 of theRelaxation Act as the time-limit for completion of assessment does not fallwithin the period from 20[th] March 2020 to 31[st] December 2020. 14.We are inclined to agree with the submissions made by Mr. Mistri.We would also add that there was no dispute that the Assessing Officer, butfor the Relaxation Act and the notifications issued therein, had to completethe assessment under Section 144C(13) latest by 30[th] April 2021. 15.Sub-section (1) of Section 3 of the Relaxation Act extends the time-limit with respect to an act for which limitation falls between the periodfrom 20[th] March 2020 to 31[st] December 2020. Since the directions of DRPwere issued and received by Assessing Officer only on 20[th] March 2021,petitioner’s case does not fall under sub-section (1) of Section 3 of theRelaxation Act as the time-limit for completion of assessment does not fallwithin the period from 20[th] March 2020 to 31[st] December 2020. 16.Sub-section (1) of Section 3 of the Relaxation Act also provides thatthe Central Government, by notification, can extend the period to suchother date after 31[st] December, 2020. Therefore, CBDT issued the firstNotification No.20/2021. Clause A of this notification provides that wherethe specified Act is the Income-tax Act, and the completion of any actionreferred to in clause (a) of sub-section (1) of Section 3 of the Act relates topassing of an order under Section 144C(13) of the Act and 31[st] March 2021is the end date, during which the time-limit specified in the Act falls forcompletion of such action, 30[th] April 2021 shall be the end date to whichthe time-limit for completion of such action shall stand extended. Thenotification, therefore, provides that if the time-limit to complete theassessment under Section 144C(13) was expiring on any date upto 31[st]March 2021, the said date for completion was extended upto 30[th] April2021. Since in this case, the time-limit for completion of assessment wasnot expiring as of 31[st] March 2021, in our view, Notification No.20/2021 isnot applicable. 17.Coming to the applicability of Notification No.38/2021 issued on27[th] April 2021, Clause (A) of the notification provides that where the specified Act is the Income-tax Act, and the completion of any actionreferred to in clause (a) of sub-section (1) of Section 3 of the RelaxationAct, relates to passing of an order under Section 144C(13) of the Act andthe time-limit for completion of such action expires on 30[th] April 2021 “dueto its extension by earlier notifications”, such time-limit shall further standextended to 30[th] June 2021. The expiry of time-limit for completion ofassessment or for passing the order in petitioner’s case under Section144C(13) of the Act on 30[th] April 2021 was not due to an earlier extensionof time-limit by an earlier notification but was on account of the fact thatthe directions were issued by the DRP on 20[th] March 2021. As per Section144C(13) of the Act, an assessing officer has one month from the date ofthe end of the month in which the directions are received by him to pass thefinal order / complete assessment, therefore, in our view, the time-limit of30[th] April 2021 not being on account of extension by earlier notification,Notification No.38/2021 is also inapplicable to petitioner’s case. 18.Coming to Notification No.74/2021 issued on 25[th] June 2021, Clause(A) of the notification provides that where the specified Act is the Income-tax Act, and the completion of any action referred to in clause (a) of sub-section (1) of Section 3 of the Relaxation Act, relates to passing of an orderfor assessment or re-assessment under the Act and the time limit forcompletion of such action under Section 153 or Section 153B thereofexpires on 30[th] June 2021 due to its extension by earlier notifications, suchtime-limit shall further stand extended to 30[th] September 2021. There is noextension of time-limit under this notification for completion of assessmentor passing of any order under Section 144C(13) of the Act. In our view,therefore, Notification No.74/2021 is also not applicable to the case athand. 18.Coming to Notification No.74/2021 issued on 25[th] June 2021, Clause(A) of the notification provides that where the specified Act is the Income-tax Act, and the completion of any action referred to in clause (a) of sub-section (1) of Section 3 of the Relaxation Act, relates to passing of an orderfor assessment or re-assessment under the Act and the time limit forcompletion of such action under Section 153 or Section 153B thereofexpires on 30[th] June 2021 due to its extension by earlier notifications, suchtime-limit shall further stand extended to 30[th] September 2021. There is noextension of time-limit under this notification for completion of assessmentor passing of any order under Section 144C(13) of the Act. In our view,therefore, Notification No.74/2021 is also not applicable to the case athand. 19.Even if we hold that the Relaxation Act was applicable topetitioner’s case as well, still, the extension vide Notification No.74/2021 isapplicable only to cases where the time-limit has already been extended byearlier notifications. Since the time-limit in petitioner’s case has not beenextended by earlier notifications, Notification No.74/2021 was not applicable to petitioner’s case. 20.Coming to Mr. Suresh Kumar’s submissions that the AssessingOfficer could have passed a consequential order by 31[st] March 2021 alsoand the Notifications No.20/2021 and 38/2021 were applicable along withNotification No.74/2021, the Relaxation Act is very clear inasmuch as itwould apply only to those cases for which limitation falls within the period20[th] March 2020 and 31[st] December 2020 or such other date after 31[st]December 2020 as the Central Government may, by notification, specify inthis behalf. The time-limit in petitioner’s case was 30[th] April 2021 andhence, the provisions of Relaxation Act will not be applicable topetitioner’s case at all. 21.As far as Mr. Suresh Kumar’s submission that the NotificationNo.74/2021 dated 25[th] June 2021, to give purposive interpretation the word‘and’ used should be read as ‘or’ as noted in paragraph No.12(d) above,statutes have to be construed in such a way that every word has a place andeverything is in its place. If the precise words used are plain andunambiguous, the courts are bound to construe them in the ordinary sensein their judgments. The words of statute are to be first understood in thenatural, ordinary or popular sense and phrases and sentences are construedaccording to their grammatical meaning, unless that leads to someabsurdity or unless there is something in the context or in the object of thestatute to suggest to the contrary. The reason for doing so is to give effect tothe intention of the Parliament. Therefore, by reading the notification as itstands, and not as suggested by Mr. Suresh Kumar, neither does it lead toany absurdity nor does it suggest anything to the contrary. Therefore, wecannot and we should not read the word ‘and’ as ‘or’. 22.Even if for a moment we hold that Relaxation Act is applicable topetitioner’s case, the time-limit provided by Notification No.38/2021expired on 30[th] June 2021. Notification No.74/2021, on which respondentshave relied upon to submit that time has been extended upto 30[th] September2021, specifically excludes Section 144C(13) of the Act. If that also was to be included, Notification No.74/2021 would have expressly provided for itas it has provided in Notifications No.20/2021 and 38/2021. 22.Even if for a moment we hold that Relaxation Act is applicable topetitioner’s case, the time-limit provided by Notification No.38/2021expired on 30[th] June 2021. Notification No.74/2021, on which respondentshave relied upon to submit that time has been extended upto 30[th] September2021, specifically excludes Section 144C(13) of the Act. If that also was to be included, Notification No.74/2021 would have expressly provided for itas it has provided in Notifications No.20/2021 and 38/2021. 23.Notification No.20/2021 and Notification No.38/2021 specificallyreferred to the time-limit for passing the final assessment order underSection 144C(13) of the Act. There is, however, no specific reference to thetime-limit under Section 144C(13) of the Act in Notification No.74/2021.Therefore, it is clear that CBDT has not extended the time-limit for passingany order under Section 144C(13) of the Act vide Notification No.74/2021dated 25[th] June 2021, and hence, there is no extension of time-limit to 30[th]September 2021 to pass the order under Section 144C(13) of the Act. 24.In the circumstances, we are inclined to allow the petition in termsof prayer clause (a), which reads as under:- “(a)that this Hon’ble Court be pleased to issue a Writ ofCertiorari or any other writ order or direction under Article 226 ofthe Constitution of India calling for the records of the case leading toand passing of the impugned assessment order (Exhibit I) dated 30[th]September 2021 under Section 143(3) read with Section 144C(13)and 144B of the Act for the assessment year 2016-17, Computationof Income (Exhibit I-1) and the Demand Notice dated 30[th]September 2021 (Exhibit I-2) issued under Section 156 of the Actand Penalty Notice dated 30[th] September 2021 (Exhibit I-3) issuedunder Section 274 read with Section 270A of the Act and after goingthrough the same and examining the question of legality thereofquash, cancel and set aside the impugned assessment order (ExhibitI) dated 30[th] September 2021 passed under Section 143(3) read withSection 144C(13) and 144B of the Act for the assessment year 2016-17, Computation of Income (Exhibit I-1) and the Demand Noticedated 30[th] September 2021 (Exhibit I-2) issued under Section 156 ofthe Act and Penalty Notice dated 30[th] September 2021 (Exhibit I-3)issued under Section 274 read with Section 270A of the Act.” 25.Petition disposed. No order as to costs. 26.Mr. Mistri states that after the petition was filed, to be on the saferside, petitioner filed an appeal as well impugning the assessment order. Heundertakes to withdraw the appeal within two weeks from today.Undertaking accepted. (N. J. JAMADAR, J.) (K. R. SHRIRAM, J.)