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

Facts

The petitioner, M/s Loil Health Foods 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, for assessment year 2014-15, issued under Section 148 of the Income Tax Act, 1961. 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. The petitioner's counsel accepted this concession.

Held

The High Court disposed of the petition based on the concession made by the revenue. The revenue conceded that the impugned notice dated 31.03.2021, dispatched to the petitioner on or after 01.04.2021, for 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, following the Supreme Court's ruling in Union of India vs. Ashish Agarwal. The Court directed 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 the subsequent proceedings. No specific issue was left undecided; the matter was resolved by procedural direction.

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, in light of the Supreme Court's decision in Union of India vs. Ashish Agarwal (2023) 1 SCC 617. Assessee's contention: The petitioner, through its counsel, accepted the revenue's concession that the notice should be treated as one under Section 148A(b). Revenue's contention: The revenue conceded that the impugned notice, issued for assessment year 2014-15, should be treated as a notice under Section 148A(b) of the Act, in terms of the law laid down by the Supreme Court in Union of India vs. Ashish Agarwal.