SUPRE CREATIVE SPARES PVT. LTD. vs. THE INCOME TAX OFFICER, WARD 4(1)(1), AHMEDABAD

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SCA/2037/2023HC GujaratGJHC24008340202308 February 2023Author: HONOURABLE THE CHIEF JUSTICE MS. JUSTICE SONIA GOKANI,HONOURABLE MR. JUSTICE SANDEEP N. BHATT3 pages
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What did the High Court hold?

The High Court allowed the petition, quashing and setting aside the notice dated 20.07.2022 issued under Section 148 of the Income Tax Act, 1961, along with the order under Section 148A(d) of the same date. The Court applied the reasoning from its previous decision in Keenara Industries Private Limited Vs. The Income Tax Officer, Surat and allied matters, which had allowed the plea of the petitioner on the issue of limitation and quashed similar notices for AY 2013-14 and AY 2014-15. The operative direction was to make the rule absolute to the extent of quashing the impugned notice and order. No specific amount in dispute was mentioned, nor were any issues left undecided.

What were the facts?

The petitioner, Super Creative Spares Pvt. Ltd., challenged a notice issued under Section 148 of the Income Tax Act, 1961, dated 09.06.2021. Following the judgment in Union of India Vs. Ashish Agarwal, the respondent issued a notice under Section 148A(b) for Assessment Year (AY) 2014-15 on 24.05.2022. The petitioner replied to this notice, and the respondent passed an order under Section 148A(d) on 20.07.2022. On the same day, a notice under Section 148, as per the Finance Act, 2021, was issued. The petitioner sought to quash these notices and the order under Section 148A(d).

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, along with the order under Section 148A(d) of the same date, is liable to be quashed and set aside? Assessee's Contention: The petitioner sought to quash the impugned notice dated 20.07.2022 under Section 148 and the order under Section 148A(d) dated 20.07.2022. The petitioner relied on the decision of the Gujarat High Court in Keenara Industries Private Limited Vs. The Income Tax Officer, Surat and allied matters; Special Civil Application No.17321 of 2022, decided on 07.02.2023, concerning the issue of limitation. Revenue's Contention: The judgment records that the respondent's counsel waived service of notice of rule. No specific arguments were recorded for the revenue on the merits of the case.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A(b),Section 148A(d)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/SCA/2037/2023 ORDER DATED: 08/02/2023 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 2037 of 2023 ========================================================== SUPER CREATIVE SPARES PVT. LTD. Versus THE INCOME TAX OFFICER, WARD 4(1)(1), AHMEDABAD ========================================================== Appearance: DARSHAN R PATEL(8486) for the Petitioner(s) No. 1 MS KALPANA N. RAVAL, SR. STANDING COUNSEL WITH MR KARAN SANGHANI, ADVOCATE for the Respondent(s) No. 1 ========================================================== CORAM:HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MR. JUSTICE SANDEEP N. BHATT Date : 08/02/2023

ORAL ORDER (PER : HONOURABLE MS. JUSTICE SONIA GOKANI)

1.

Draft amendment is allowed. The same shall be carried out at the earliest.

2.

The petitioner seeks to challenge the notice issued under Section-148 of the Income Tax Act, 1961 dated 09.06.2021. In under Section-148A(b) for the A.Y.2014-15 on 24.05.2022, which have been replied to eventually and the respondent passed an order under Section-148A(d) on 20.07.2022. A C/SCA/2037/2023 ORDER DATED: 08/02/2023 notice under Section-148 as per Finance Act, 2021 came to be passed on the very day.

3.

The challenge is made by way of following prayers:- 7III(A) Issue a writ of certiorari and/or a writ of mandamus and/or any other writ direction or order to quash and set aside the impugned notice dated 20.07.2022 under section 148 of the Income-tax Act, 1961 annexed hereto at Annexure-E alongwith order under Section 148A(d) dated 20.07.2022 annexed hereto at Annexure-D and all further notices, if any, issued for completing reassessment including reassessment order, if any, framed during pendency of this petition; (B) Pending admission, hearing and disposal of this petition, ad-interim relief be granted and the respondent be ordered to restrain from enforcing compliance of the impugned notice dated 20.07.2022 under section 148 of the Income-tax Act, 1961 annexed hereto at Annexure-E alongwith order under Section 148A(d) dated 20.07.2022 annexed hereto at Annexure- D and all further notices, if any, issued for completing reassessment including reassessment order, if any, framed during pendency of this petition; (C) Award the costs of this petition; (D) Grant such other and further reliefs as this Hon’ble Court deems fit.”

4.

Rule made returnable forthwith. Ms. Kalpana Raval, learned senior standing counsel assisted by Mr. Karan C/SCA/2037/2023 ORDER DATED: 08/02/2023 Sanghani, learned advocate waives service of notice of rule for and on behalf of respondent.

5.

On hearing both the sides and also, in wake of decision of this Court in case of Keenara Industries Private Limited Vs. The Income Tax Officer, Surat and allied matters; Special Civil Application No.17321 of 2022; decided on 07.02.2023, where this Court on the issue of limitation has allowed the plea of petitioner and quashed the notices for the A.Y. 2013- 14 and A.Y.2014-15 issued by the respondent, this petition is also allowed applying the very reasonings without elaborating the same.

6.

Resultantly, the petition is allowed quashing and setting aside the notice impugned dated 20.07.2022 issued under Section-148 of the Act alongwith the order under Section- 148A(d) of the self-same date. Rule is made absolute to the aforesaid extent. (SONIA GOKANI, J) (SANDEEP N. BHATT,J) A. B. VAGHELA

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