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

Facts

The petitioner, M/s Loil Overseas Foods Ltd., filed a writ petition (CWP-4348-2022) before the High Court of Punjab & Haryana at Chandigarh. The petition challenged 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 respondent was the Deputy Commissioner of Income Tax, Central Circle-3, Ludhiana. The procedural history involves the issuance of the Section 148 notice, which was the subject of the challenge.

Held

The High Court held that the revenue conceded that 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 a notice 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 concession satisfied the petitioner's counsel. Consequently, the petition was disposed of with a direction to the respondent-revenue to proceed from the stage of the notice, 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. No issue was left undecided.

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 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 assessee, through its senior counsel, sought to have the impugned notice treated as a notice under Section 148A(b) of the Act, as per the law laid down by the Supreme Court. Revenue's Contention: 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 terms of the Supreme Court's decision in Union of India and others vs. Ashish Agarwal (2023) 1 SCC 617.