RAJESH KUMAR SONI S/O SH. KESAR DEV SONI vs. INCOME TAX OFFICER

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CW/1043/2022HC RajasthanRJHC02085391202109 May 2022Bench: PRAKASH GUPTA,SAMEER JAIN3 pages
AI SummaryRemanded

What did the High Court hold?

The Rajasthan High Court, following the directions issued by the Hon'ble Supreme Court in Union of India & Others Vs. Ashish Agarwal (2022 SCC OnLine SC 145), has disposed of the writ petition. The Supreme Court's order held that Section 148 notices issued under the unamended Section 148 of the Income Tax Act, which were the subject matter of writ petitions before various High Courts, shall be deemed to have been issued under Section 148A of the IT Act as substituted by the Finance Act, 2021. These notices are to be treated as show-cause notices in terms of Section 148A(b). The Assessing Officer is directed to provide information and material relied upon by the Revenue to the assessees within thirty days, allowing the assessees two weeks thereafter to reply. The requirement of conducting an inquiry under Section 148A(a) is dispensed with as a one-time measure for notices issued between April 1, 2021, and June 30, 2021. The Assessing Officer shall thereafter pass orders in accordance with Section 147 read with Section 148A of the Act. This order is applicable PAN India and governs pending writ petitions challenging similar notices.

What were the facts?

The petitioner, Rajesh Kumar Soni, filed a writ petition before the Rajasthan High Court challenging notices issued under Section 148 of the Income Tax Act, 1961. The respondent is the Income Tax Officer, Ward-4, Jaipur. The assessment year(s) are not explicitly stated. The procedural history involves the petitioner filing a writ petition, which was heard along with other similar matters. The High Court's decision was influenced by a Supreme Court judgment concerning notices issued under Section 148 of the Income Tax Act.

What were the issues?

1. Whether Section 148 notices issued under the unamended provisions of the Income Tax Act, 1961, prior to their substitution by the Finance Act, 2021, are valid if issued after April 1, 2021? (Question of law, concerning Section 148 of the Income Tax Act, 1961). Assessee's Contention: The judgment does not record specific arguments made by the assessee. The petitioner's case is being disposed of in terms of the Supreme Court's order. Revenue's Contention: The judgment does not record specific arguments made by the Revenue. The Supreme Court's order in Union of India & Others Vs. Ashish Agarwal (2022 SCC OnLine SC 145) is the primary basis for the decision.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 147

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPU-R ). D.B. Civil Writ Petition No. 104312022 Rajesh Kumar Soni S/o Sh. Kesar Dev Soni, Aged About 48 Years, R/o E-34, Swarnkar Colony, Rpa, Shastri Nagar, Jaipur, Rajasthan, India. ----Petitioner Versus Income Tax Officer, Ward-4 zg+ p i-2),,,sJ$aipur, New Central Revenue 4 p Q, r. , Building, Bhagwan . , , -

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.&&?* . w.. .I .:g ;"$%<: Fo Petit @";"(s) : Mr. Deepak Chauhan, Advogg&$, ':* " ;k For ~ ~ s ~ p ~ , # d x.Ghklt3 nt(s) : Mr. Ashish Sharma, A d v o c a t ' ~ ~ , ~ . ~ ~ I' 1y ' 09/05/2022 hearing today, learned counsel for the parties this petition would be by the Hon'ble Supre f Union of India & Others Vs. Ashish A No. 3005/2022 and batch of appeals). Following directions have been issued by the Hon'ble Supreme Court in the aforesaid case: '10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED I N PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No. 52412021 and other allied tax appealslpetitions, islare 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 I T 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 frop 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 within two weeks thereafter; (ii) The requirement of conducting any enquiry, if required, wiJh kth:q+$p of specifired a u t h o ri tye'fu,nd,er5e;~~ec -" .. 9,+& ) is hereby dispenSeCQj+wrth as a one-ti + t h o ~ ? ~ ~ n o t ~ c e s which. have been s3&ct.., *- lion 148 of the unamended ~8"lp9'!04.2021 till date, including those wh &~i&een quashed by the High Courts. ,* served hereinabove but it is for (d) in respect of each of the c s; Thereafter after uired under section r section 148 (as vailable to the e under section and contentions the concerned each of the observed hereinabove approval of but it is for o hold any II thereafter pass (d) in respect of s; Thereafter after / rgquired under section substituted r section 148 (as vailable to the e under section and contentions the concerned assessees a ~ m * u i u n d e ~ the Finance Act, 2021 and in I t 4- %Y? ue t o 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 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

(3 of 3) [CW- 1043/2022] v pending writ petitions, pending before various Hjgh Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge. 12. The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by various High Courts, more particularly, t h e respective judgments and orders passed by t h e various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the aforesaid extent only. e r as t o costs." ordingly, this writ petition is also finally sed of "'-g +. in terms of order dated Q:aQC5t,pt@22 passed by the Hon'ble The authori matter in accordance issued by the Hon'ble Supreme Court in para 10 the writ petition, the stay application filed ive and the same also stands disposed of acc (SAMEER JAIN),J (PRAKASH GUPTA),J

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