ASHRAF ABDUL GANI KHAN vs. INCOME TAX OFFICER WARD 34(1)(1) AND ANR

PDF · subscribers
WP/3854/2022HC BombayHCBM01011048202204 April 2022Author: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE SHRI JUSTICE N. R. BORKAR2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the notice issued under Section 148 of the Income Tax Act, 1961, dated April 20, 2021, was bad in law and liable to be quashed. The reasoning was that the notice was issued subsequent to the effective date of the Finance Act, 2021 (April 1, 2021), which replaced the old procedure for issuing such notices. The court relied on its previous decision in Tata Communications Transformation Services Limited V/s. Assistant Commissioner of Income Tax 14(1) & Ors., where similar notices were held to be invalid. Consequently, the impugned notice in this petition was quashed and set aside. The court accepted the statement that no assessment order had been communicated and noted that even if one had been passed, it would be non-est due to the invalidity of the notice. The petition was disposed of accordingly.

What were the facts?

The petitioner, Ashraf Abdul Gani Khan, filed a writ petition before the Bombay High Court challenging a notice issued under Section 148 of the Income Tax Act, 1961. The notice was dated April 20, 2021. The petitioner's counsel stated that no assessment order had been communicated. The court noted that the procedure followed for the notice was the old procedure, which was replaced by the Finance Act, 2021, effective from April 1, 2021. The court also observed that even if an assessment order were passed, it would be non-est (void) because the Section 148 notice itself was being set aside.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, dated April 20, 2021, is bad in law and liable to be quashed, considering the procedural changes introduced by the Finance Act, 2021, effective from April 1, 2021? Assessee's Contention: The assessee argued that the notice issued under Section 148 was invalid because it was issued following the old procedure, which had been superseded by the Finance Act, 2021, from April 1, 2021. The assessee also stated that no assessment order had been communicated. Revenue's Contention: The judgment does not record any specific contentions made by the revenue. However, the court proceeded to decide the issue based on its prior ruling.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

1/2 919.WP-3854-2022.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.3854 OF 2022 Ashraf Abdul Gani Khan ….Petitioner V/s. Income Tax Officer, Ward 34(1)(1) & Ors. ….Respondents ---- Ms. Dishya Pandey i/b. Mr. Shreyas Shrivastava for petitioner. Mr. Suresh Kumar for respondents. ---- CORAM : K.R. SHRIRAM & N.R. BORKAR, JJ.

DATED : 4th APRIL 2022 P.C.: 1 In this case the notice issued under Section 148 of the Income Tax Act, 1961 (the Act) is dated 20th April 2021 but the procedure followed is the old procedure which came to be replaced by the Finance Act, 2021 with effect from 1st April, 2021. 2 Ms. Pandey states that she does not have any instructions of any assessment order having been communicated to petitioner. Statement accepted. Even if the assessment order is passed, still it will be non-est as the notice issued under Section 148 of the Act itself is being set aside. 3 We have already held in Tata Communications Transformation Services Limited V/s. Assistant Commissioner of Income Tax 14(1) & Ors.1 that such notices are bad in law and have to be quashed. Accordingly, notice

1.

Writ Petition No.1334 of 2021 dated 29th March, 2022. Gauri Gaekwad GAURI AMIT GAEKWAD GAURI AMIT GAEKWAD Date: 2022.04.06 11:22:48 +0530

2/2 919.WP-3854-2022.doc impugned in this petition is hereby quashed and set aside. 4 Petition disposed accordingly. (N.R. BORKAR, J.) (K.R. SHRIRAM, J.) Gauri Gaekwad

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →