SUNNY GEMS INDIA PVT. LTD. vs. ASSISTANT COMMISSIONER OF INCOME TAX

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CW/5622/2022HC RajasthanRJHC02027970202225 April 2022Author: MANINDRA MOHAN SHRIVASTAVA,SAMEER JAIN2 pages
AI SummaryAllowed

What did the High Court hold?

The Tribunal, in view of the petitioner's submission and the precedent set by the Division Bench of the Rajasthan High Court in Sudesh Taneja Vs. Income Tax Officer, Ward-1(3) & Anr. (D.B. Civil Writ Petition No. 969/2022 and batch), held that the notices issued under Section 148 of the Income Tax Act, 1961, were invalid and impermissible in law. Consequently, the impugned notice issued in the present case was quashed and set aside. The petition was allowed based on the reasoning provided in the aforementioned precedent. No specific issue was left undecided.

What were the facts?

The petitioner, Sunny Gems India Pvt. Ltd., is challenging a notice issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2013-14. The petitioner's authorized person is Mr. Radha Mohan Vijay. The respondents are the Assistant Commissioner of Income Tax, Circle 4, and the Union of India through the Secretary, Central Board of Direct Taxes. The petitioner's counsel stated that no final assessment order has been passed to date. The petitioner argued that the issue is settled by a previous Division Bench decision of the same court.

What were the issues?

1. Whether the notices issued under Section 148 of the Income Tax Act, 1961, are invalid and impermissible in law, as argued by the petitioner. The petitioner relies on the Division Bench decision in Sudesh Taneja Vs. Income Tax Officer, Ward-1(3) & Anr., dated 27.01.2022, which held such notices to be invalid and quashed them. The revenue has not recorded any specific arguments in this judgment.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 5622/2022 Sunny Gems India Pvt. Ltd., (Ay 2013-14), Having Its Registered Office At 32, Shopping Centre, Janata Colony, Jaipur, Rajasthan - 302004, Through Mr. Radha Mohan Vijay, Its Authorized Person. ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Circle 4, N.c.r. Building, Bhagwan Das Road, Jaipur, Rajasthan - 302005. 2. Union Of India, Though Its Secretary, Central Board Of Direct Taxes, Department Of Revenue, Ministry Of Finance, North Block, New Delhi (Nct)-110001. ----Respondents For Petitioner(s) : Mr. Vedant Agarwal Advocate. For Respondent(s) : Mr. Anuroop Singhi Advocate. HON'BLE THE ACTING CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE SAMEER JAIN

Order 25/04/2022 [CW-5622/2022] Ward-1(3) & Anr. (D.B. Civil Writ Petition No. 969/2022 and batch of petitions) where the notices issued under Section 148 of the Income Tax Act, 1961 have been found to be invalid and impermissible in law and quashed.

In view of the above statement made by learned counsel for the petitioner, the impugned notice issued in the present case, for the reasons stated in the order dated 27.01.2022 passed in the aforesaid cases, is also quashed and set aside and the petition is allowed. (SAMEER JAIN),J (MANINDRA MOHAN SHRIVASTAVA),ACTING CJ Sanjay Kumawat-8

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