RINJI ESTATES DEVELOPERS PRIVATE LIMITED vs. THE INCOME TAX OFFICER WARD 3(1) GURGAON AND ANOTHER

Facts

The petitioner, Rinji Estates Developers Pvt. Ltd., challenged notices dated March 31, 2021, issued under Section 148 of the Income Tax Act, 1961, for various assessment years. These notices were dispatched to the petitioner on or after April 1, 2021. The revenue, represented by the Income Tax Officer, Gurgaon, and another respondent, conceded before the Punjab & Haryana High Court that these notices should be treated as notices under Section 148A(b) of the Act, in light of the Supreme Court's decision in Union of India vs. Ashish Agarwal. The petitioner's counsel found this concession satisfactory.

Held

The High Court disposed of the petition based on the concession made by the revenue. The revenue conceded that the impugned notices dated March 31, 2021, dispatched to the petitioner on or after April 1, 2021, for the respective assessment years, issued under Section 148 of the Income Tax Act, 1961, should be treated as notices under Section 148A(b) of the Act. This concession was made 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 Court directed the respondent-revenue to proceed from the stage of these notices, in terms of the procedure laid down under Section 148A(b) of the Act. The petitioner was granted liberty to raise all possible pleas and defenses available to it during these proceedings. Any pending miscellaneous applications were also disposed of.

Key Issues

1. Whether notices issued under Section 148 of the Income Tax Act, 1961, dispatched on or after April 1, 2021, for the relevant assessment years, should be treated as notices 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, through its senior counsel, accepted the revenue's concession that the impugned notices should be treated as notices 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 notices dated March 31, 2021, dispatched to the petitioner on or after April 1, 2021, for the respective assessment years, under Section 148 of the Act, be treated as notices under Section 148A(b) of the Act.