Wpa/2727/2022 Of Suresh Kumar Bagaria v. Income Tax Officer, Ward

22-02-2022Item No.48-76Subrata IN THE HIGH COURT AT CALCUTTAConstitutional Writ JurisdictionAppellate Side WPA No.2715 of 2022Urmesh Suri-vs- Union of India & Ors.with WPA Nos. 2716/2022, 2717/2022, 2718/2022, 2719/2022, 2720/2022, 2721/2022, 2722/2022, 2723/2022,2724/2022, 2725/2022, 2726/2022, 2727/2022,2750/2022, 2773/2022, 2783/2022, 2786/2022,2795/2022, 2798/2022, 2956/2022, 2959/2022, 2969/2022 & 2972/2022 Mr. Avra Mazumdar Sk. Md. Bilwal Hossain Ms. Manashi Kumar Roy Mr. Kausheya Roy Mr. Prithu Dudhoria Mr. Binayak Gupta Mr. Pratyush Jhunjhunwala Ms. Nikita Khaitan Mr. Arun Kumar Mishra Mr. Ananda Sen Mr. Anuran Samanta …for the petitioners (in all the writ petitions) Mr. S.N. Dutta Ms. Sucharita Biswas ….for the respondents (in all the writ petitions) Heard learned counsel appearing for the parties. In view of involvement of common question of lawand similarity of facts in all these writ petitions, with theconsent of the parties, they have been heard together andare being decided by the present common judgement andorder. Common facts and issues are involved in all thesewrit petitions as appear on perusal of relevant record, and upon considering the submissions of the parties it appearsthat the petitioners are aggrieved by the issuance of theimpugned notices under section 148 of the Income Tax Act,1961 on the grounds that the same are barred bylimitation, and that the respondents-income-tax authoritiesconcerned, before issuing the impugned notices undersection 148 of the 1961 Act, have not observed thestatutory formalities 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] April 2021. Issues arising in all the present writ petitions arepurely legal, and in all these writ petitions theassessees/petitioners have sought relief of quashing of theimpugned re-assessment notices issued post-31[st] March2021 by the respondents-income tax authorities concernedunder section 148 of the Income Tax Act, 1961.Assessees/petitioners have also sought relief by way of adeclaration declaring Explanations A(a)(ii)/A(b) toNotification No. 20 [S.O. 1432 (E) dated 31[st] March 2021]and Notification No.38 [S.O.1703(E) dated 27[th] April 2021]to 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 31[st] March2021, before commencement of the Finance Act, 2021” tothe period beyond 31[st] March 2021 as ultra vires the parentlegislation, viz., The Taxation and Other Laws (Relaxationand Amendment of Certain Provisions) Act, 2020(hereinafter referred to as “Relaxation Act, 2020”). At the outset, all the counsel appearing for theparties jointly submitted that the issues involved in thesewrit petitions are covered by the decision of the DivisionBench of the Allahabad High Court dated September 30, 2021 in the case of Ashok Kumar Agarwal-vs-Union ofIndia, through its Revenue Secretary, North Block & Ors.(Writ Tax No. 524/2021) decided in favour of theassessees/petitioners, and an order of Rajasthan HighCourt dated November 25, 2021 in the case of Bpip InfraPrivate Limited-vs-Income Tax Officer, Ward 4(1), Jaipur(S.B. Civil Writ Petition No.13297/2021) and an order ofthe Delhi High Court dated December 15, 2021 in the caseof Man Mohan Kohli-vs-Assistant Commissioner of IncomeTax & Anr. [W.P. (C) 6176 of 2021] and a judgement andorder of this court dated January 17, 2022 in the case ofManoj Jain-vs-Union of India & Ors. in WPA No.11950 of2021 and also in the case of Bagaria Properties andInvestment Private Limited & Anr. in WPO No.244 of 2021. 2021 in the case of Ashok Kumar Agarwal-vs-Union ofIndia, through its Revenue Secretary, North Block & Ors.(Writ Tax No. 524/2021) decided in favour of theassessees/petitioners, and an order of Rajasthan HighCourt dated November 25, 2021 in the case of Bpip InfraPrivate Limited-vs-Income Tax Officer, Ward 4(1), Jaipur(S.B. Civil Writ Petition No.13297/2021) and an order ofthe Delhi High Court dated December 15, 2021 in the caseof Man Mohan Kohli-vs-Assistant Commissioner of IncomeTax & Anr. [W.P. (C) 6176 of 2021] and a judgement andorder of this court dated January 17, 2022 in the case ofManoj Jain-vs-Union of India & Ors. in WPA No.11950 of2021 and also in the case of Bagaria Properties andInvestment Private Limited & Anr. in WPO No.244 of 2021. In view of the judgements and orders of this courtdated January 17, 2022 in the case of Manoj Jain-vs-Unionof India & Ors. in WPA No.11950 of 2021 and in the case ofBagaria Properties and Investment Private Limited & Anr. inWPO No.244 of 2021, all these writ petitions herein aredisposed of by allowing the same. Explanations A(a)(ii)/A(b) to the notifications datedMarch 31, 2021 and April 27, 2021 are declared to be ultravires the Relaxation Act, 2020 and are, therefore, bad in lawand null void. All the impugned notices under section 148of the Income Tax, 1961 are quashed with liberty to theassessing officers concerned to initiate fresh re-assessmentproceedings in accordance with the relevant provisions ofthe Act as amended by the Finance Act, 2021 and aftermaking compliance of the formalities as required by thelaw. [Md. Nizamuddin, J]