ZENTEST SOFTWARE PRIVATE LIMITED vs. ASSISTATN COMMISSIONER OF INCOME TAX CIRCLE 12 AND ORS

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WP/9956/2022HC BombayHCBM01034230202201 March 2024Bench: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE JUSTICE DR. NEELA KEDAR GOKHALE2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue in the present petitions was covered by the judgment in *Godrej Industries Ltd. V/s. The Assistant Commissioner of Income Tax, Circle 14(1)(2), Mumbai and Ors.*. Consequently, the impugned orders passed under Section 148A(d) of the Income Tax Act, 1961, and the notices issued under Section 148 of the Act in the respective petitions were quashed and set aside. Any consequential notices or orders also stood quashed and set aside. The Court explicitly stated that the petitions were disposed of only on the issue of limitation, and petitioners were at liberty to raise other contentions independently if the need arose in other matters. The ratio decidendi is that if a prior judgment of the same court covers the issue, the subsequent petitions should follow that precedent, particularly concerning procedural aspects like limitation.

What were the facts?

The petitioners, Zentest Software Private Limited and others, filed multiple writ petitions before the Bombay High Court challenging orders passed under Section 148A(d) of the Income Tax Act, 1961, and notices issued under Section 148 of the Act. The revenue, represented by the Assistant Commissioner of Income Tax and others, was the respondent. The petitions were filed across various dates in 2022 and 2023. The core of the dispute revolved around the validity of these notices and orders, which were issued by the income tax authorities.

What were the issues?

1. Whether the impugned orders passed under Section 148A(d) of the Income Tax Act, 1961, and the notices issued under Section 148 of the Act are valid. This is a question of law and mixed fact and law, turning on the provisions of Section 148A and Section 148 of the Income Tax Act, 1961. The petitioners argued that their petitions would be covered by a recent judgment of the Bombay High Court in *Godrej Industries Ltd. V/s. The Assistant Commissioner of Income Tax, Circle 14(1)(2), Mumbai and Ors.*. The revenue's counsel agreed with this submission.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

1/2 AS 946& Ors.WP-9956-2022.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.9956 OF 2022 Zentest Software Private Limited ….Petitioner V/s. Assistant Commissioner of Income Tax, Circle 12 and Ors.

.…Respondents WITH WRIT PETITION NOS.10139, 10931, 11076, 11119, 11222, 11226, 11239, 11283, 11611, 12123, 12136, 12865, 14528, 15497, 15925 OF 2022 WRIT PETITION NOS.1804, 2108, 4822 OF 2023 ---- Mr. Niraj Sheth i/b. Mr. Atul K. Jasani, Mr. Devendra Jain (Through VC) a/w. Ms. Radha Halbe, Mrs. Deepa Khare i/b. Mint and Confreres, Ms. Ritika Agarwal a/w. Mr. Sandesh P. Salunkhe and Ms. Ayesha Ansari i/b. Ace Legal, Mr. Riyaz Padvekar a/w. Mr. Tanzil Padvekar and Ms. Tejal Kharkar, Mrs. Deepa Khare i/b. Mint and Confreres, Ms. Rucha Vaidya i/b. Mr. Ruturaj Gurjar, Ms. Rucha Vaidya i/b. Mr. Ruturaj Gurjar, Mr. Dharan Gandhi a/w. Ms. Aanchal Vyas, Mr. Riyaz Padvekar a/w. Mr. Tanzil Padvekar and Ms. Tejal Kharkar, Mr. Sagar Tilak a/w. Ms. Payal Rathod i/b. Mr. Sachin Hande, Mr. Jitendra Singh, Mr. Shashi Bekal, Mr. Mihir Naniwadekar a/w. Mr. Suyog Bhave i/b. PDS Legal, Mr. Sukhsagar Syal a/w. Mr. Govind Javeri , Mr. Suyog Bhave a/w. Mr. Yash Prakash and Mr. Vikas Poojary i/b. PDS Legal , Ms. Vidhi Punmiya a/w. Mr. Sanket Bora i/b. SPCM Legal for Petitioners-Assessees in respective matters. Mr. Suresh Kumar for Respondents-Revenue in respective matters. ---- CORAM : K.R. SHRIRAM & DR. NEELA GOKHALE, JJ.

DATED : 1st MARCH 2024 P.C. : 1 Counsel for petitioners state that the issue in these petitions will be covered by the recent judgment of this Court in Godrej Industries Ltd. V/s. The Assistant Commissioner of Income Tax, Circle 14(1)(2), Gauri Gaekwad 2024:BHC-AS:10089-DB

2/2 AS 946& Ors.WP-9956-2022.doc Mumbai and Ors.1 Counsel for respondents agree. 2 Therefore, impugned orders passed under Section 148A(d) of the Income Tax Act, 1961 (the Act) and the notices issued under Section 148 of the Act in the respective petitions are hereby quashed and set aside. Consequential notices or orders, if any, also stand quashed and set aside. 3 Petitions disposed. 4 Since we have disposed these petitions only on the issue of limitation, petitioners may raise the other contentions raised in these petitions independently, if the need arise in other matters. (DR. NEELA GOKHALE, J.) (K.R. SHRIRAM, J.) 1 Judgment pronounced on 28th February 2024 in Writ Petition No.450 of 2023 Gauri Gaekwad Signed by: Gauri A. Gaekwad Designation: PS To Honourable Judge Date: 02/03/2024 15:52:32

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