PRAVIN SINGH AAYAM vs. UNION OF INDIA

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WPT/101/2022HC ChhattisgarhCGHC01009759202212 May 2022Bench: HON'BLE SHRI JUSTICE SANJAY AGRAWAL5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, by referring to its own Division Bench's decision in Writ Appeal No. 277/2021, which in turn relied on the Supreme Court's judgment in Union of India & Others v. Ashish Agarwal, disposed of the writ petitions. The Supreme Court's order, as applied by the High Court, directed that impugned Section 148 notices issued under the unamended Act shall be deemed to have been issued under Section 148A of the Act. The assessing officer is required to provide information to the assessees, who can then reply to show-cause notices. The requirement of conducting an enquiry under Section 148A(a) was dispensed with as a one-time measure. After following the procedure under Section 148A, the assessing officer may issue a notice under the substituted Section 148. All defenses available to the assessees and revenue under the Finance Act, 2021, and law remain available. The Supreme Court's order was made applicable PAN India and governed pending writ petitions challenging similar notices. The High Court's operative direction was to dispose of the petitions in light of these observations.

What were the facts?

The petitioners, including Ramesh Kumar Agrawal, Pinky Agrawal, Sanjeev Sinha, Pravin Singh Aayam, Sandeep Kumar Aayam, Premlata Minj, and Pranjal Mittal, filed writ petitions before the High Court of Chhattisgarh, Bilaspur. They challenged notices issued by the Income Tax Officer, Ward 1, Ambikapur, under Section 148 of the Income Tax Act, 1961. The High Court noted that the issue involved had already been decided by a Division Bench of the same court in Writ Appeal No. 277/2021, which followed the Supreme Court's decision in Union of India & Others v. Ashish Agarwal. The Supreme Court's order provided a specific procedure for notices issued under the unamended Section 148 of the Income Tax Act.

What were the issues?

1. Whether the notices issued under Section 148 of the Income Tax Act, 1961, are valid and proper in light of the Supreme Court's decision in Union of India & Others v. Ashish Agarwal. The petitioners' contention, implied by their filing of writ petitions challenging the Section 148 notices, is that these notices are illegal or improper. The revenue's position, as indicated by the High Court's reference to the Supreme Court's judgment, is that the notices, though issued under the unamended Section 148, should be treated in accordance with the directions given by the Supreme Court in the Ashish Agarwal case. The Supreme Court's judgment modified and substituted the High Court's orders, providing a specific framework for such notices.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149

AI-generated summary — verify with the full judgment below

1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR WPT No. 5 of 2022 Ramesh Kumar Agrawal S/o Ved Prakash Agrawal Aged About 51 Years Post Box No. 21 M/s Mittal Stone Crusher, Mayapur, Ambikapur, Surguja Chhattisgarh 497001. ---- Petitioner Versus 1. Union Of India Through Principal Commissioner Income Tax Department, Central Revenue Building, Civil Lines Raipur Chhattisgarh 492001. 2. Income Tax Officer Ward 1 Ambikapur Income Tax Department, Agrasen Marg, Ambikapur District Surguja Chhattisgarh 497001. ---- Respondents WPT No. 4 of 2022 Pinky Agrawal W/o Rajendra Agrawal D/o Maugi Agrawal, Aged About 48 Years R/o. House No. 186 K Near Holly Cross School Ward No. 8 Patpariya M.G. Road, Ambikapur District Surguja Chhattisgarh 497001 ---- Petitioner Versus 1. Union Of India Through Principal Commissioner Income Tax Department, Central Revenue Building, Civil Lines Raipur Chhattisgarh 492001 2. Income Tax Officer Ward 1 Ambikapur Income Tax Department, Agrasen Marg, Ambikapur District Surguja Chhattisgarh 497001. ---- Respondents WPT No. 103 of 2022 Sanjeev Sinha S/o Late Laxmi Prasad Sinha Aged About 54 Years R/o Ward No. 27, Shastri Ward, Mayapur, Ambikapur, District Sarguja 497001 Chhattisgarh. ---- Petitioner Versus 1. Union Of India Through Principal Commissioner Income Tax Department, Central Revenue Building, Civil Lines Raipur Chhattisgarh 492001, 2. Income Tax Officer Ward 1 Ambikapur Income Tax Department, Agrasen Marg Ambikapur District Surguja Chhattisgarh. ---- Respondents WPT No. 101 of 2022 Pravin Singh Aayam S/o Balinder Prasad Aayam, Aged About 30 Years R/o Gautiyapara Road, Wadrafnagar, District Surguja Chhattisgarh,

2 ---- Petitioner Versus 1. Union Of India Through Principal Commissioner Income Tax Department, Central Revenue Building, Civil Lines Raipur Chhattisgarh 492001, 2. Income Tax Officer Ward 1 Ambikapur Income Tax Department, Agrasen Marg Ambikapur District Surguja Chhattisgarh. 497001 ---Respondents WPT No. 116 of 2022 Sandeep Kumar Aayam S/o Balinder Prasad Aayam Aged About 25 Years R/o Wadrafnagar, P.S.- Basantpur, District- Balrampur, Chhattisgarh, ---- Petitioner Versus 1. Union Of India Through Principal Commissioner, Income Tax Department, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh, District : Raipur, Chhattisgarh 2. Income Tax Officer Ward 1 Ambikapur, Income Tax Department, Agrasen Marg, Ambikapur, District- Surguja, Chhattisgarh 497001 ---- Respondents WPT No. 7 of 2022 Premlata Minj W/o Mr. Franklin Toppo Aged About 46 Years D/o Abednego Minj, Aged About 46 Years R/o House No. 162, Mangal Pandey Ward No. 13, Near New Pani Tanki Namnakala, Ambikapur District Surguja Chhattisgarh 497001 ---- Petitioner Versus 1. Union Of India Through Principal Commissioner, Income Tax Department, Central Revenue Building, Civil Lines Raipur Chhattisgarh 492001 2. Income Tax Officer, Ward No. 01, Ambikapur, Income Tax Department, Agrasen Marg, Ambikapur District Surguja Chhattisgarh 497001 ---- Respondents WPT No. 6 of 2022 Pranjal Mittal S/o Ramesh Kumar Mittal Aged About 24 Years R/o Chandni Chowk Mayapur Ambikapur, District- Surguja, Chhattisgarh, 497001, ---- Petitioner Versus 1. Union Of India Through Principal Commissioner, Income Tax Department, Central Revenue Building, Civil Lines, Raipur, Chhattisgarh- 492001, 2. Income Tax Officer, Ward 1 Ambikapur, Income Tax Department, Agrasen Marg, Ambikapur, District Surguja, Chhattisgarh 497001 ---- Respondents

3 ________________________________________________________________________ For Petitioners : Shri Pravin Kumar Tulsyan, Advocate appears along with Shri Karan Kumar Baharani, Advocate For Respondent No.1 : Shri Manoj Mishra, Shri Tushal Dhar Diwan, Shri Sumit Singh, Shri Abhishek Gupta, Shri Shikhar Sharma and Shri Ram Narayan Sahu, Advocates For Respondent No.2 : Shri Amit Chaudhari, Shri Ajay Kumrani and Shri Topilal Bareth, Advocates ------------------------------------------------------------------------------------------------------------- Single Bench: Hon'ble Shri Justice Sanjay S. Agrawal Order On Board 13.05.2022 1. By way of this petition, the Petitioners are questioning the legality and propriety of the notice issued by Respondent No.2- Income Tax Officer under Section 148 of the Income Tax Act, 1961. 2. At the outset, the issue involved herein has already been decided by the Division Bench of this Court in Writ Appeal No.277/2021 along with other connected matters, wherein it is observed at paragraphs 4 and 5 as under : “4. As the Hon’ble Supreme Court had decided the matter, namely, Union of India & Others v. Ashish Agarwal, reported in (2022) SCC Online SC 543, and as certain time-lines are indicated therein, I.A. No. 2 of 2022 was filed. 5. The Hon’ble Supreme Court disposed of the aforesaid case as follows: “26. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgment and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:- (i) The impugned section 148 notices issued to the

4 respective assessees which were issued under unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show-cause notices within two weeks thereafter; (ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a one-time measure vis-a-vis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required; (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under Section 148A may issue notice under section 148 (as substituted); (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assesses and Revenue under the Finance Act, 2021 and in law shall continue to be available.

5 27. The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 01.04.2021 issued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending before various High Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge. 28. The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by various High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the aforesaid extent only. 29. All these appeals are accordingly partly allowed to the aforesaid extent. 30. In the facts of the case, there shall be no order as to costs.” 3. In the light of the observation made by the Division Bench of this Court, the petitions stand disposed of. Sd/-

(Sanjay S. Agrawal)

JUDGE sunita

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