JAIPRAKASH RAMGOPAL KABRA vs. THE INCOME TAX OFFICER AND OTHERS

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WP/1562/2022HC BombayHCBM03004223202217 June 2022Bench: HON'BLE SHRI JUSTICE RAVINDRA V. GHUGE,HON'BLE SHRI JUSTICE ANIL L. PANSARE4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that considering the judgment delivered by the Hon'ble Supreme Court on May 4, 2022, in Civil Appeal No. 3005 of 2022 and connected cases, the directions in paragraph 10 of that judgment would apply to the present petitions. Consequently, the petitions were disposed of in terms of those directions. The Supreme Court's directions, as reproduced by the High Court, stated that notices issued under the unamended Section 148, which were the subject of writ petitions, shall be deemed to have been issued under Section 148A as substituted by the Finance Act, 2021, and treated as show-cause notices. The assessing officer was directed to provide information within thirty days, and assessees could reply within two weeks. The requirement of enquiry under Section 148A(a) was dispensed with as a one-time measure for notices issued under the unamended Section 148 from April 1, 2021, till date. Assessing officers were to pass orders under Section 148A(d) and then issue notices under the substituted Section 148. All defenses and rights available to assessees and the Revenue under the Finance Act, 2021, and law were preserved. The Supreme Court's order was made applicable PAN INDIA and would govern pending writ petitions challenging similar notices.

What were the facts?

This judgment concerns multiple writ petitions filed before the High Court of Judicature at Bombay, Aurangabad Bench. The petitioners are assessees challenging notices issued under Section 148 of the Income Tax Act, 1961. The Revenue is the respondent. The core issue revolves around the validity of these notices issued after April 1, 2021, when Section 148 was amended by the Finance Act, 2021. The High Court, in its order dated June 17, 2022, noted that the learned advocates for both parties were in agreement that the directions of the Hon'ble Supreme Court in a recent judgment (Civil Appeal No. 3005 of 2022 and connected cases) would apply to these petitions.

What were the issues?

1. Whether the notices issued under the unamended Section 148 of the Income Tax Act, 1961, which were the subject matter of writ petitions before various High Courts, should be deemed to have been issued under Section 148A of the Income Tax Act, as substituted by the Finance Act, 2021, and treated as show-cause notices in terms of Section 148A(b)? - Assessee's contention: Not explicitly recorded, but impliedly seeking quashing of notices or relief based on the Supreme Court's directions. - Revenue's contention: Not explicitly recorded, but impliedly seeking to uphold the notices or seeking benefit from the Supreme Court's directions. 2. Whether the requirement of conducting an enquiry with prior approval of a specified authority under Section 148A(a) should be dispensed with as a one-time measure for notices issued under the unamended Section 148 from April 1, 2021, till the date of the judgment? - Assessee's contention: Not explicitly recorded. - Revenue's contention: Not explicitly recorded. 3. Whether the assessing officers should thereafter pass orders under Section 148A(d) and, after following the procedure under Section 148A, issue notices under the substituted Section 148? - Assessee's contention: Not explicitly recorded. - Revenue's contention: Not explicitly recorded. 4. Whether all defences available to the assessees, including those under Section 149 of the Income Tax Act, and all rights and contentions available to both parties under the Finance Act, 2021, and in law, shall continue to be available? - Assessee's contention: Not explicitly recorded. - Revenue's contention: Not explicitly recorded.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149

AI-generated summary — verify with the full judgment below

Heard together (42 matters)

WP/417/2022
WP/1009/2022
WP/10094/2021
WP/10095/2021
WP/9240/2021
WP/452/2022
WP/9654/2021
WP/3361/2022
WP/3366/2022
WP/1667/2022
WP/9461/2021
WP/9480/2021
WP/9842/2021
WP/1445/2022
WP/1049/2022
WP/9845/2021
WP/9454/2021
WP/1529/2022
WP/3357/2022
WP/9867/2021
WP/1562/2022
WP/1472/2022
WP/1489/2022
WP/1487/2022
WP/9990/2021
WP/10003/2021
WP/454/2022
WP/1066/2022
WP/3355/2022
WP/3372/2022
WP/1535/2022
WP/4405/2022
WP/9841/2021
WP/13556/2021
WP/9688/2021
WP/10096/2021
WP/1519/2022
WP/13557/2021
WP/13568/2021
WP/9687/2021
WP/9985/2021
WP/1670/2022

Read from the judgment's own cause title. This page is filed under one of them.

( 1 ) wp9103.21 IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD 917 WRIT PETITION NO.9103 OF 2021 WITH WP/417/2022 WITH WP/1009/2022 WITH WP/10094/2021 WITH WP/10095/2021 WITH WP/9240/2021 WITH WP/452/2022 WITH WP/9654/2021 WITH WP/3361/2022 WITH WP/3366/2022 WITH WP/1667/2022 WITH WP/9461/2021 WITH WP/9480/2021 WITH WP/9842/2021 WITH WP/1445/2022 WITH WP/1049/2022 WITH WP/9845/2021 WITH WP/9454/2021 WITH WP/1529/2022 WITH WP/3357/2022 WITH WP/9867/2021 WITH WP/1562/2022 WITH WP/1472/2022 WITH WP/1489/2022 WITH WP/1487/2022 WITH WP/9990/2021 WITH WP/10003/2021 WITH WP/454/2022 WITH WP/1066/2022 WITH WP/3355/2022 WITH WP/3372/2022 WITH WP/1535/2022 WITH WP/4405/2022 WITH WP/9841/2021 WITH WP/13556/2021 WITH WP/9688/2021 WITH WP/10096/2021 WITH WP/1519/2022 WITH WP/13557/2021 WITH WP/13568/2021 WITH WP/9687/2021 WITH WP/9985/2021 WITH WP/1670/2022 SHAILESH SHIVPRASAD KABRA VERSUS THE UNION OF INDIA THROUGH SECRETARY AND OTHERS Mr.R.R. Chandak, Mr.A.N. Sikchi, Mr.D.R. Jethliya, Mr. Akshay Kulkarni with Mr.A.D. Soman, Advocates for the petitioners in respective petitions. Mr.B.B. Kulkarni, Ms.Sudha S. Chintamani, Ms. Nikita Gore, Mr.S.S. Deve, Mr.D.B. Gaikwad, Mr.M.A. Golegaonkar, ASG for the respondents in respective petitions. Mr.Alok Sharma, Ms. Kalpalata Patil Bharaswadkar a/w. Mr.A.R. Kale, Advocates for respondents/Income Tax Dept. in respective petitions. CORAM : RAVINDRA V. GHUGE & ANIL L. PANSARE, JJ. DATED : 17.06.2022 PC :- 01. Considering the judgment delivered by the Hon’ble Supreme Court, on 4th May, 2022 in Civil Appeal No.3005 of 2022 and connected group

( 2 ) wp9103.21 of cases, the learned Advocates for the respective parties before us are united in submitting that the directions of the Hon’ble Apex Court in paragraph 10 would become applicable to the petitions and these petitions will have to be disposed off in terms of the order set out below paragraph Nos.10 and 11 of the said judgment. 02. For the sake brevity, we are reproducing paragraph Nos.10 and 11 hereunder :- “10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No.524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:- (i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show-cause notices

( 3 ) wp9103.21 within two weeks thereafter: (ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a one- time measure vis-a-viz those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required. (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as substituted); (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available. 11. The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after

( 4 ) wp9103.21 01.04.2021 issued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending before various High Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge.” 03. In view of the above, these petitions stand disposed off in terms of the directions of the Hon’ble Supreme Court. [ANIL L. PANSARE,J.] [RAVINDRA V. GHUGE,J.] snk/2022/JUN22/wp9103.21

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