M/S, LOIL CONTINENTAL FOODS LTD. vs. DEPUTY COMMISSIONER OF INCOME TAX AND ANR.

Facts

The petitioner, M/s Loil Continental Foods Ltd., filed a writ petition challenging a notice dated 31.03.2021, issued under Section 148 of the Income Tax Act, 1961, for assessment year 2014-15. The notice was dispatched on or after 01.04.2021. The respondent is the Deputy Commissioner of Income Tax, Central Circle-3, Ludhiana. The High Court of Punjab & Haryana at Chandigarh heard the matter. The procedural history involves the issuance of the Section 148 notice, which the petitioner contested.

Held

The High Court held that the revenue's concession, based on the Supreme Court's judgment in Union of India and others vs. Ashish Agarwal (2023) 1 SCC 617, was acceptable. The Court directed that the impugned notice dated 31.03.2021, issued for assessment year 2014-15 and dispatched on or after 01.04.2021, be treated as a notice under Section 148A(b) of the Income Tax Act, 1961. 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. The petitioner was granted liberty to raise all available pleas and defenses during these proceedings. No issue was expressly left undecided, as the matter was resolved by the concession and subsequent directions.

Key Issues

1. Whether the notice dated 31.03.2021, issued under Section 148 of the Income Tax Act, 1961, for assessment year 2014-15, dispatched on or after 01.04.2021, should be treated as a notice under Section 148A(b) of the Act? (Question of law) Assessee's Contention: The petitioner, through its senior counsel, implicitly argued that the notice should be treated as per the prevailing law, which was influenced by the Supreme Court's decision in Ashish Agarwal. The petitioner's counsel was satisfied with the revenue's concession. Revenue's Contention: 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 notice under Section 148A(b) of the Act.