M/S SUDHA RICE PROCESSING PVT. LTD. vs. ASSISTANT COMMISSIONER OF INCOME-TAX

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WPT/82/2023HC ChhattisgarhCGHC01010707202324 April 2026Author: HON'BLE SHRI JUSTICE RAKESH MOHAN PANDEY3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court quashed the orders issued under Section 148A(d) of the Income Tax Act, 1961, and the notices issued under Section 148 of the Act. The Court's decision was based on the concession made by the revenue before the Supreme Court in the cases of Union of India vs. Rajeev Bansal and Deepak Steel and Power Limited vs. Central Board of Direct Taxes & Ors. The Supreme Court had acknowledged that for the assessment year 2015-16, all notices issued on or after April 1, 2021, would have to be dropped as they would not fall for completion within the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The High Court found no further adjudication necessary given this concession and the fact that the notices in question were dated June 25, 2021. The writ petitions were disposed of with these observations and directions.

What were the facts?

These are three writ petitions (WPT No. 82 of 2023, WPT No. 102 of 2023, and WPT No. 97 of 2023) filed by M/s Sudha Rice Processing Pvt. Ltd., Shri Bajrang Power And Ispat Limited, and Satish Kumar Agrawal, respectively. The petitioners are challenging notices and orders issued by the Income Tax Department concerning reassessment proceedings. The core of the dispute revolves around notices issued for the assessment year 2015-16, particularly those issued after April 1, 2021. The petitions were heard jointly by the High Court of Chhattisgarh at Bilaspur.

What were the issues?

1. Whether notices issued for the assessment year 2015-16 on or after April 1, 2021, are liable to be dropped, considering the provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA)? Assessee's Contention: The petitioners implicitly argue that such notices are invalid. They rely on pronouncements from the Supreme Court, specifically the cases of Union of India vs. Rajeev Bansal and Deepak Steel and Power Limited vs. Central Board of Direct Taxes & Ors., which acknowledge the revenue's concession regarding notices issued after April 1, 2021, for AY 2015-16. Revenue's Contention: The revenue, as noted in the Supreme Court judgments, has conceded that for AY 2015-16, all notices issued on or after April 1, 2021, will have to be dropped as they do not fall for completion within the period prescribed under TOLA. No specific argument against this concession was recorded for the revenue in this High Court proceeding.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

1

2026:CGHC:19176

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPT No. 82 of 2023 * - M/s Sudha Rice Processing Pvt. Ltd. A Company Duly Incorporated Under The Companies Act, 1956 Having Its Registered Office At Danitola, Near Nahar Naka, Dhamtari Chhattisgarh Through Its Authorized Signatory Suryakant Khandelwal, S/o Shri Satish Kumar Khandelwal, Aged About 49 Years, Resident Of 261, Nahar Naka Chowk, Mahima Sagar Ward, Ward 34, Dhamtari, Chhattisgarh.

--- Petitioner Versus 1 - Assistant Commissioner Of Income-Tax Circle -1(1), Aayakar Bhawan, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh. 2 - Principal Commissioner Of Income Tax Office Of Chief Commissioner Of Income Tax, Central Revenue Building, Civil Lines, Raipur, District : Raipur, Chhattisgarh 3 - Union Of India Through Secretary Central Board Of Direct Taxes, North Block, New Delhi.

--- Respondents And WPT No. 102 of 2023 * - Shri Bajrang Power And Ispat Limited A Company Registered Under Companies Act, 2013, Through Its Director Shri Rajendra Goel, Aged About 66 Years, S/o Shri Hari Ram Goel, Having Registered Office At Village - Borjhara, Urla Guma Road, Raipur, 492001 Chhattisgarh.

---Petitioner Versus 1 - Union Of India Through Its Secretary, Ministry Of Finance, (Department Of Revenue), No. 137, North Block, New Delhi – 110001 2 - Principal Chief Commissioner Of Income Tax Aayakar Bhawan, 48 Area Hills, Hoshangabad Road, Bhopal – 462001 3 - Chief Commissioner Of Income Tax Raipur, Having His Office At New C.R. Bulding, Civil Lines, Raipur, Chhattisgarh 4 - Assistant Commissioner Of Income Tax Circle 1(1), Raipur Having His Office At New C.R. Building Civil Lines, Raipur, Chhattisgarh KUMAR VATTI Date: 2026.04.27 19:21:45 +0530

2 5 - Central Board Of Direct Taxes Department Of Revenue, Ministry Of Finance, Government Of India, North Block, New - Delhi - 110001

--- Respondents And WPT No. 97 of 2023 * - Satish Kumar Agrawal S/o Bajrang Lal Agrawal Aged About 57 Years 3B, Heavy Industrial Area, Hathkhoj, Bhilai, District Durg (C.G.) Pin 490026. ---Petitioner Versus 1 - Union Of India Through Secretary, Central Board Of Direct Taxes, North Block New Delhi. 2 - Chief Commissioner Of Income-Tax Aaykar Bhawan, Civil Lines, Raipur (C.G.) 3 - Principal Commissioner Of Income-Tax Aaykar Bhawan, Civil Lines, Raipur (C.G.) 4 - Income-Tax Officer-2(1) Aaykar Bhawan, Vyapar Vihar, Bilaspur. 5 - The National Faceless Assessment Centre Through The Principal Commissioner Of Income-Tax, National Faceless Assessment Centre, Jhandewalan, New Delhi.

--- Respondents For Petitioner For Petitioner For Petitioner : : : Mr. Neelabh Dubey, Advocate in WPT No. 82/2023 Mr. Manoj Kumar Sinha, Advocate in WPT No. 97/2023 Mr. Soumitra Kesharwani, Advocate holding the brief of Mr. Apurv Goyal, Advocate in WPT No. 102/2023 For Respective Respondents : Mr. Abhishek Banjare, Central Government Counsel and Mr. Ajay Kumrani, Advocate Hon’ble Shri Justice Rakesh Mohan Pandey Order on Board 25/04/2026

1.

This Bunch of writ petitions deals with similar issues and points of law and are, accordingly, dealt by this Court jointly.

2.

With regard to notices issued for assessment year 2015-16, in the taxmann.com 70 (SC) considered before the Honb’le Supreme Court in para 19(f) as under :- “19 f. The Revenue concedes that for the assessment year 2015-16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA.”

3.

Board of Direct Taxes & Ors. reported in 305 Taxman 169 (SC), the Hon’ble Supreme Court while dealing with the order passed under Section 148(A)(d) of the Income Tax Act, 1961 (for short “Act, 1961”) and notices issued under Section 148 of the Act, 1961 in para 5 held has under :- “5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-16, all notices issued on or after 1st April, 2021 will have to be dropped as they would not fall for completion during the period prescribed under the taxation and other laws (Relaxation and Amendment of certain Provisions Act, 2020). Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.06.2021.”

4.

Taking into consideration the reassessment proceedings made by the revenue and observation made by the Hon’ble Supreme Court in the matter of Deepak Steel (supra) the orders issued under Section 148 (A)(d) Act, 1961 and notices issued under Section 148 of Act, 1961 are hereby quashed.

5.

With the above observations and directions, all the writ petitions are disposed of.

(Rakesh Mohan Pandey)

Judge vatti

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