BHUSHAN AIRWAYS SERVICES PRIVATE LIMITED vs. DCIT, CEN 1, CHANDIGARH AND ORS

Facts

The petitioner, Bhushan Airways Services Pvt. Ltd., filed a writ petition before the High Court of Punjab and Haryana at Chandigarh challenging a notice dated 31.03.2021, dispatched on or after 01.04.2021, issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2014-15. The respondents were the Deputy Commissioner of Income Tax and others. The revenue, through its senior standing counsel, 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 and others Vs. Ashish Agarwal (2023) 1 SCC 617. This concession satisfied the petitioner.

Held

The High Court noted that the learned counsel for the revenue conceded 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 31.03.2021, dispatched to the petitioner on or after 01.04.2021, for the assessment year 2014-15, under Section 148 of the Income Tax Act, 1961, should be treated as notices under Section 148A(b) of the Act. This concession satisfied the learned counsel for the petitioner. Accordingly, the present petition was disposed of with a direction to the respondent-revenue to proceed from the stage of the aforementioned notices, in terms of the procedure laid down under Section 148A(b) of the Act. The petitioner was also granted liberty to raise all possible pleas/defences available to it in the course of these proceedings. No issue was expressly left undecided.

Key Issues

1. Whether the notice dated 31.03.2021, dispatched to the petitioner on or after 01.04.2021, for the assessment year 2014-15, under Section 148 of the Income Tax Act, 1961, 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 and others Vs. Ashish Agarwal (2023) 1 SCC 617? Assessee's Contention: The petitioner sought to have the notice treated as one under Section 148A(b) of the Act. Revenue's Contention: The revenue conceded 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 31.03.2021, dispatched to the petitioner on or after 01.04.2021, for the assessment year 2014-15, under Section 148 of the Income Tax Act, 1961, be treated as notices under Section 148A(b) of the Act.