RATHI STEEL AND METAL PRIVATE LIMITED THROUGH ITS AUTHORISED OFFICER vs. OFFICE OF THE INCOME TAX OFFICER AND OTHERS

PDF · subscribers
WP/9990/2021HC BombayHCBM03028869202117 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 in view of the judgment delivered by the Hon'ble Supreme Court on May 4, 2022, in Civil Appeal No. 3005 of 2022 and connected matters, the directions contained in paragraphs 10 and 11 of the Supreme Court's judgment would apply to the present writ petitions. Consequently, the petitions were disposed of in terms of those directions. Specifically, the Supreme Court's directions, as reproduced by the High Court, stated that impugned Section 148 notices issued under the unamended Act shall be deemed to have been issued under Section 148A of the IT Act as substituted by the Finance Act, 2021, and construed as show-cause notices. The Assessing Officer is to provide information within thirty days, and assessees have two weeks to reply. The requirement of conducting an enquiry under Section 148A(a) is dispensed with as a one-time measure for notices issued under the unamended Section 148 from April 1, 2021, to date. Thereafter, Assessing Officers are to pass orders under Section 148A(d) and then issue notices under the substituted Section 148. All defenses available to assessees and Revenue under the Finance Act, 2021, and law shall continue to be available. The Supreme Court's order is applicable PAN INDIA and governs pending writ petitions challenging similar notices.

What were the facts?

This judgment concerns numerous writ petitions filed before the Bombay High Court, Aurangabad Bench, challenging notices issued under Section 148 of the Income Tax Act, 1961. The petitioners are assessees, and the respondents are the Union of India and the Income Tax Department. The core issue revolves around notices issued under the unamended Section 148 of the Income Tax Act, 1961, which were subsequently affected by the Finance Act, 2021, introducing Section 148A. The petitioners sought relief from these notices. The High Court considered a recent judgment by the Supreme Court dated May 4, 2022, in Civil Appeal No. 3005 of 2022 and connected matters.

What were the issues?

1. Whether Section 148 notices issued under the unamended provisions of the Income Tax Act, 1961, prior to the substitution by the Finance Act, 2021, should be treated as notices under Section 148A of the Act, as per the Supreme Court's directions? (Question of law and fact, concerning Section 148 and 148A of the IT Act). 2. Whether the requirement of conducting an enquiry under Section 148A(a) can be dispensed with as a one-time measure for notices issued under the unamended Section 148 from April 1, 2021, to date? (Question of law, concerning Section 148A of the IT Act). Assessee's Contentions: The petitioners, through their advocates, submitted that the directions of the Hon'ble Supreme Court in its judgment dated May 4, 2022, would be applicable to these petitions and that the petitions should be disposed of in terms of paragraphs 10 and 11 of that judgment. Revenue's Contentions: The learned Advocates for the respective parties, including the Revenue, were united in submitting that the Supreme Court's directions would apply. No specific arguments were recorded for the Revenue beyond this consensus.

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

More judgments on Section 148

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

Recent GST High Court judgments

Search GST case law →