GVK Energy Limited vs. The National Faceless Assessment Center

The ground taken by the learned counsel for the petitioner(s) is that in furtherance of Finance Act,2O2l, re- assessment process stood modified but the respondents have not taken care of it and therefore, notice issued under Section 148 of the Income Tax Act, 196 1 cannot sustain judicial scrutiny. Since notice is bad in law, the consequential orders are also bad in law.

During the coursc of hearing, learned counsel for the parties agreed that curtains on this issue are linally drawn by this Court in a batch of writ petitions, W.P.No.25903 of 2022 and other connected matters, decided by common order dated 14.O9.2023. The parties agreed that this matter may be disposed of in terms of the Common Order dated 14 .O9 .2023. I I

This Court in the said order dated 74.09.2023 in W.P.No.25903 ot 2022, held as under:

In view of the aforesaid discussions, it is by now very clear that the procedure to be followed by the respondent- DepartEent upon treatiug the notices issued for reassessment being under Section 148A, the subsequent ptoceediogs was mandatorily tequiied to be uudertaken under the substituted provisions as laid down under the FioaDce Act, 2021. Ia the absence of which, we are constraiaed to hold that the procedure adopted by the respo[dent-DepartEent is in contravention to the statute i.e. the Finance Act, 2021, at the first instance- Secondly, it is also in direct contravention to the directives issued by the Hon'ble Supreme Court in the case of Ashish Agarwal, supra-

For all the aforesaid reasons, the impugaed notices issued and the proceedings drawn by the respotrdent-Department is neither tenable, nor sustainable. The lrotices so issued and the procedure adopted being per se illegal, deserves to be and are accordingly set aside/quashed- As a consequence, all the impugned orders gettilg quashed, the coasequeDtial orders passed by the respondent Departmeat pursuaqt to the notices issued under Section 147 and 148 would also get quashed and it is ordered accordingly. The reason we are quashiag the consequential order is on the principles that when the iritiation of the proceedings itself was procedurally wrong, the subsequent orde.s also gets nullifiied automaticaLly.

The preliminary objection raised by the petitioner is sustaioed and all these writ petitioas stands allowed on this very jurisdictio[al issue. Since the impugned aotices and orders are gettirg quashed olt the poitt ofjurisdiction, we are not inclined to proceed further and decide the other issues raised by the petitioner shich stands reserved to be raised and contended itt an appropriate proceedings.

Since the Hon'ble Supreme Court had, in the case of Ashish Agarwal, supra, as a one-time measure exercisiog the powers under Article 142 of the Constitutior of India, permitted the Rewenue to proceed u[der the substituted provisions, and this Court aUowing the petitions only on the procedural flaqr', the right cooferred on the Revenue t ould remain leserved to proceed further if they so want from the 3 stage of the ordei of the Suprerne Court in the case of Ashish Agarual, supra.

No order as to cgsts."

In vie'*, of the consensus arrived, the impugned Show Cause notice and consequential orders passed in this writ petition are set aside. Liberty is reserved to both the parties to take respective stald and to proceed in accordance with law as per paragraph No.38 of the order dated 14.09.2023 in W.P.No.25903 of 2022. 6. The Writ Petition is allowed. No costs. Interlocutory applications, if any pending, shall also stand closed. N. SRIHARI ASSISTANT\TEG,JSTRAR SECTION OFFICER

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