GANESHAY OVERSEAS INDUSTRIES LTD vs. DEPUTY COMMISSIONER OF INCOME TAX AND ANR

Facts

The petitioner, Ganeshay Overseas Industries Ltd., filed a writ petition before the High Court of Punjab & 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 assessment year 2014-15. The respondent was the Deputy Commissioner of Income Tax, Central Circle-3, Ludhiana. 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. This concession satisfied the petitioner.

Held

The High Court held that the revenue's concession, based on the Supreme Court's decision in Union of India and others vs. Ashish Agarwal (2023) 1 SCC 617, was acceptable. 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, was to be treated as a notice under Section 148A(b) of the Act. Consequently, the petition was disposed of with a direction to the respondent-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. No specific issue was left undecided.

Key Issues

1. Whether the notice dated 31.03.2021, dispatched on or after 01.04.2021, for assessment year 2014-15, issued under Section 148 of the Income Tax Act, 1961, should be treated as a notice under Section 148A(b) of the Act? The revenue argued 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 should be treated as a notice under Section 148A(b) of the Act. The petitioner's counsel accepted this concession.