HARSH BEDI vs. PR. COMMISSIONER OF INCOME TAX AND ORS

Facts

The petitioner, Harsh Bedi, filed a writ petition challenging a notice dated March 31, 2021, issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2015-16. The notice was dispatched on or after April 1, 2021. The respondents are the Principal Commissioner of Income Tax, Ludhiana, and others. The case came before the High Court of Punjab & Haryana at Chandigarh. The revenue conceded that the impugned notice should be treated as a notice under Section 148A(b) of the Act, in light of the Supreme Court's decision in Union of India vs. Ashish Agarwal.

Held

The High Court noted the concession made by the learned counsel for the revenue. The revenue agreed that in terms of the law laid down by the Supreme Court in Union of India and others vs. Ashish Agarwal (2023) 1 SCC 617, the impugned notice dated March 31, 2021, dispatched to the petitioner on or after April 1, 2021, for the assessment year 2015-16, under Section 148 of the Income Tax Act, 1961, should be treated as a notice under Section 148A(b) of the Act. This concession satisfied the learned counsel for the petitioner. Consequently, the petition was disposed of with a direction to the respondents-revenue to proceed from the stage of the notice under Section 148A(b) of the Act, following the prescribed procedure. The petitioner was granted liberty to raise all available pleas and defenses during these proceedings.

Key Issues

1. Whether the notice dated March 31, 2021, issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2015-16, dispatched on or after April 1, 2021, should be treated as a notice under Section 148A(b) of the Act, in light of the Supreme Court's decision in Union of India vs. Ashish Agarwal (2023) 1 SCC 617? (Question of law). Assessee's Contention: The petitioner's counsel was satisfied with the revenue's concession. Revenue's Contention: The revenue conceded that the impugned notice dated March 31, 2021, dispatched to the petitioner on or after April 1, 2021, for the assessment year 2015-16, under Section 148 of the Income Tax Act, 1961, be treated as notice under Section 148A(b) of the Act, in terms of the law laid down by the Supreme Court in Union of India and others vs. Ashish Agarwal (2023) 1 SCC 617.