AKSHAR PROPERTIES MUMBAI vs. ASST. COMMISSIONER OF INCOME TAX CIRCLE 27(1) AND ORS

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WP/4543/2022HC BombayHCBM01015152202213 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 notices issued under Section 148 of the Income Tax Act, 1961, which followed the old procedure after the Finance Act, 2021, came into effect, are bad in law and liable to be quashed. The Court relied on its previous decision in Tata Communications Transformation Services Limited V/s. Assistant Commissioner of Income Tax 14(1) & Ors. The notice impugned in the present petition was accordingly quashed and set aside. Consequently, the assessment order dated March 29, 2022, which was based on the invalid notice, could not be sustained and was also quashed and set aside. Any consequential orders or steps taken were also declared quashed. The Court did not leave any issue undecided.

What were the facts?

The petitioner, Akshar Properties, filed a writ petition before the Bombay High Court challenging a notice issued under Section 148 of the Income Tax Act, 1961, dated May 6, 2021. The petitioner contended that the procedure followed for issuing this notice was the old procedure, which had been replaced by the Finance Act, 2021, effective from April 1, 2021. The assessment order dated March 29, 2022, which was consequential to the Section 148 notice, was also challenged. The respondents were the Assistant Commissioner of Income Tax, Circle 27(1), Mumbai, and another.

What were the issues?

1. Whether a notice issued under Section 148 of the Income Tax Act, 1961, dated May 6, 2021, is bad in law if it follows the old procedure when the Finance Act, 2021, had already introduced a new procedure effective from April 1, 2021? Assessee's Contention: The petitioner argued that the notice was bad in law because it was issued under the old procedure, which was no longer applicable after April 1, 2021. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding this issue.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

911-cwp-4543-22.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 4543 OF 2022

Akshar Properties

… Petitioner V/s. Asst. Commissioner of Income Tax Circle 27(1), Mumbai and anr. … Respondents ---------------- Ms Ritika Agarwal i/b ACE Legal for the Petitioner. Mr. Suresh Kumar for the Respondent. ----------------

CORAM : K.R. SHRIRAM &

N.R. BORKAR, JJ. DATE : APRIL 13, 2022. P.C. 1] In this case the notice issued under Section 148 of the Income Tax Act, 1961 (the Act) is dated 06.05.2021 but the procedure followed is the old procedure which came to be replaced by the Finance Act, 2021 with effect from 01.04.2021. 2] 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 impugned in this petition is hereby quashed and set aside.

1.

Writ Petition No.1334 of 2021 dated 29th March, 2022. Dinesh Sherla 1/2 DINESH SADANAND SHERLA SADANAND SHERLA Date: 2022.04.18 17:39:41 +0500

911-cwp-4543-22.doc 3] Since we have set aside the notice itself, the assessment order dated 29.03.2022, copy whereof is annexed to the petition at Exhibit-E, cannot be sustained. Same is also quashed and set aside. Any consequential orders or steps taken will also stand quashed. 4] Petition disposed accordingly.

(N.R. BORKAR, J.) (K.R. SHRIRAM, J.) Dinesh Sherla 2/2

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