FM INDIA SUPPLY CHAIN PRIVATE LTD. vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1)

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IA/6643/2024HC BombayHCBM01013104202412 March 2024Author: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE JUSTICE DR. NEELA KEDAR GOKHALE2 pages
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What did the High Court hold?

The High Court allowed the interim application for amendment. Regarding the writ petition, the Court noted the petitioner's submission that the basis for issuing the notice under Section 148A(b) was a change of opinion, citing the precedent of Siemens Financial Services Private Limited Vs. Deputy Commissioner of Income Tax & Ors. The Court granted the revenue three weeks to file a reply. Until June 30, 2024, the Court granted ad-interim relief, restraining the respondent from taking any steps or proceedings in relation to the impugned order under Section 148A(d) and the notice under Section 148. The petition is listed for admission on May 6, 2024. No final decision on the merits of the case has been rendered.

What were the facts?

The petitioner, FM India Supply Chain Pvt. Ltd., has filed a writ petition before the Bombay High Court challenging an order dated April 13, 2023, passed under Section 148A(d) of the Income Tax Act, 1961, and a consequent notice dated the same day issued under Section 148 of the Act. The petitioner contends that the basis for issuing the notice under Section 148A(b) is a mere change of opinion by the revenue. The revenue sought time to file a reply, which was granted. The petition is listed for admission on May 6, 2024. Ad-interim relief has been granted to the petitioner until June 30, 2024, restraining the respondent from taking any steps concerning the impugned order and notice.

What were the issues?

1. Whether the issuance of a notice under Section 148A(b) of the Income Tax Act, 1961, based on a change of opinion by the revenue is a valid ground to challenge the proceedings? (Question of law) Assessee's Contention: The petitioner argues that the entire basis for the issuance of the notice under Section 148A(b) is a change of opinion. They rely on the Bombay High Court's decision in Siemens Financial Services Private Limited Vs. Deputy Commissioner of Income Tax & Ors., which held that a change of opinion is a valid ground to challenge such proceedings. Revenue's Contention: The judgment records that the respondent-revenue sought time to file a reply and did not present arguments on the merits of the case at this stage.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

1/2 908-aswp-2510-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 2510 OF 2024 WITH INTERIM APPLICATION NO. 6643 OF 2024 FM India Supply Chain Pvt. Ltd. …Petitioner Versus Assistant Commissioner of Income Tax, Circle 1(1), Pune …Respondent Mr. Vineet Kothari, Senior Advocate, i/b. Mr. Nikhil Rungta, with Mr. Devkinandan R. Singh & Mr. Mehul Kothari, for Petitioner. Mr. Arjun Gupta, for Respondent-Revenue. CORAM: K. R. SHRIRAM & DR. NEELA GOKHALE, JJ. DATED: 12th March 2024 PC:- INTERIM APPLICAITON NO.6643 OF 2024

1.

For reasons mentioned in the application, Interim Application is allowed. Leave to amend as per the amendment sought in paragraph 4 of the Interim Application is granted. Amendment to be carried out during the course of today. WRIT PETITION NO.2510 OF 2024

2.

Petitioner impugns an order dated 13th April 2023 passed under Section 148A(d) of the Income Tax Act, 1961 (“the Act”) as also the consequent notice of the same date issued under Section 148 of the Act. Counsel submits that the entire basis of issuance of notice Gaikwad RD 2024:BHC-AS:12028-DB

2/2 908-aswp-2510-2024.doc Commissioner of Income Tax & Ors.,1 the change of opinion will be a valid ground to challenge the petition.

3.

Mr. Gupta seeks three weeks time to file reply. Time granted. Rejoinder, if any, to be filed and copy served within two weeks thereafter.

4.

Petition be listed for admission on 6th May 2024. 5. Until 30th June 2024, there shall be ad-interim relief in terms of prayer clause (aa), which reads as under: “(aa) That pending the hearing and final disposal of this Writ Petition, Respondent, his successors in office, subordinates, servants and agents be restrained by an order and injunction of this Hon'ble Court to refrain from taking and steps or proceedings whatsoever for or in relation to the impugned order under Section 148A(d) of the Act dated 13.04.2023 Exhibit-R, and impugned notice under Section 148 of the Act dated 13.04.2023 Exhibit-S” (DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.)

1.

(2023) 457 ITR 647 (BOM) Gaikwad RD Signed by: Raju D. Gaikwad Designation: PS To Honourable Judge Date: 13/03/2024 12:58:18

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