We Have Already Held In Tata Communicationstransformation Services Limited v. Assistantcommissioner Of Income Tax 14(1) & Ors.1That Suchnotices Are Bad In Law

Digitallysigned by IN THE HIGH COURT OF JUDICATURE AT BOMBAYPURTIPURTIPRASADPRASADPARABORDINARY ORIGINAL CIVIL JURISDICTIONPARABDate:2022.05.1012:12:26+0530 WRIT PETITION NO. 81 OF 2022 Hindustan Petroleum Corporation Limited V/s.Deputy Commissioner of Income Tax,Circle 1(1)(1), Mumbai and Ors. ….Petitioner …Respondents ---- Ms. Aarti Sathe i/b Ms. Aasavari Kadam for Petitioner.Mr. Suresh Kumar for Respondents. ---- CORAM : K.R. SHRIRAM & N. R. BORKAR, JJ. DATED : 5[th] MAY, 2022 P.C. : 1. On 27[th] April, 2022 following order came to be passed : 1.Mr. Neeraj Kumar Agarwal has filed an Affidavit dated20[th] April, 2022 from which it is clear that the impugnednotice under Section 148 of the Income Tax Act, 1961 (thesaid Act) was not issued on 31 st March, 2021 to theassessee. 2.The notice issued under Section 148 of the Income TaxAct, 1961 (the Act), therefore, is after 31[st] March, 2021 butthe procedure followed is the old procedure which came tobe replaced by the Finance Act, 2021 with effect from 1[st]April, 2021. 3. We have already held in Tata CommunicationsTransformation Services Limited vs. AssistantCommissioner of Income Tax 14(1) & Ors.1that suchnotices are bad in law. 4.Mr. Suresh Kumar states the findings of Allahabad HighCourt on Petitions similar to those decided by this Court inTata Communications Transformation Services Limited(supra) was impugned in the Supreme Court and thematter has been reserved for orders. Therefore, stand overto 5[th] May, 2022. 1 Writ Petition No. 1334 of 2021 dated 29[th] March, 2022. 2.The Hon’ble Apex Court in the judgment of Union of India &Ors. vs. Ashish Agarwal2partially set aside the order and judgment passed bythe Hon’ble High Court Judicature at Allahabad in Writ Tax No.524 of 2021and other Writ Tax Petitions. The order also covers the judgments passed byvarious other High Courts including this court in Tata CommunicationsTransformation Services Limited V/s. Assistant Commissioner of Income Tax14(1) & Ors.3 3.The Hon’ble Apex Court has in paragraph no.10 passed thefollowing directions : 10.In view of the above and for the reasonsstated above, the present Appeals are ALLOWED INPART. The impugned common judgments and orderspassed by the High Court of Judicature at Allahabad inW.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted asunder: (i)The impugned section 148 notices issued tothe respective assessees which were issued underunamended section 148 of the IT Act, which were thesubject matter of writ petitions before the variousrespective High Courts shall be deemed to have beenissued under section 148A of the IT Act as substitutedby the Finance Act, 2021 and construed or treated tobe show-cause notices in terms of section 148A(b).The assessing officer shall, within thirty days fromtoday provide to the respective assessees informationand material relied upon by the Revenue, so that theassessees can reply to the show-cause notices withintwo weeks thereafter; (ii) The requirement of conducting any enquiry, ifrequired, with the prior approval of specified authorityunder section 148A(a) is hereby dispensed with as aone-time measure vis-à-vis those notices which have 2 Civil Appeal No. 3005/2022 dated 4[th] May, 2022. 3. Writ Petition No.1334 of 2021 dated 29[th] March, 2022. been issued under section 148 of the unamended Actfrom 01.04.2021 till date, including those which havebeen quashed by the High Courts. Even otherwise as observed hereinabove holdingany enquiry with the prior approval of specifiedauthority is not mandatory but it is for the concernedAssessing Officers to hold any enquiry, if required; (iii) The assessing officers shall thereafter passorders in terms of section 148A(d) in respect of eachof the concerned assessees; Thereafter after followingthe procedure as required under section 148A mayissue notice under section 148 (as substituted); 2 Civil Appeal No. 3005/2022 dated 4[th] May, 2022. 3. Writ Petition No.1334 of 2021 dated 29[th] March, 2022. been issued under section 148 of the unamended Actfrom 01.04.2021 till date, including those which havebeen quashed by the High Courts. Even otherwise as observed hereinabove holdingany enquiry with the prior approval of specifiedauthority is not mandatory but it is for the concernedAssessing Officers to hold any enquiry, if required; (iii) The assessing officers shall thereafter passorders in terms of section 148A(d) in respect of eachof the concerned assessees; Thereafter after followingthe procedure as required under section 148A mayissue notice under section 148 (as substituted); (iv) All defences which may be available to theassesses including those available under section 149 ofthe IT Act and all rights and contentions which may beavailable to the concerned assessees and Revenueunder the Finance Act, 2021 and in law shall continueto be available. 4.In view of the above, petition stands disposed. 5. Certainly, since all rights and contentions are kept open, the assessee may take such steps if aggrieved by any order passed by theAssessing Officer. 6.In view of the above, the assessment order is quashed and setaside. So also the consequential orders/notices. 7.Revenue may restart the process as directed by the Hon’ble Apex Court. (N. R. BORKAR, J.) (K.R. SHRIRAM, J.)