SURBHI AGARWAL DAUGHTER OF SHRI VARINDER KUMAR GARG vs. INCOME TAX OFFICER

PDF · subscribers
CW/10568/2021HC RajasthanRJHC02061360202105 July 2022Bench: MANINDRA MOHAN SHRIVASTAVA,SAMEER JAIN3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the writ petition is finally disposed of in terms of the order dated 04.05.2022 passed by the Hon'ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal. Following the Supreme Court's directions, the impugned Section 148 notices issued to the assessee, which were issued under the unamended Section 148, shall be deemed to have been issued under Section 148A of the Income Tax Act, 1961, 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 within thirty days, allowing the assessee two weeks thereafter to reply. The requirement of conducting an enquiry under Section 148A(a) is dispensed with as a one-time measure. The Assessing Officer shall thereafter pass orders in terms of Section 148A(d) and, if necessary, issue a notice under the substituted Section 148. All defenses available to the assessee, including those under Section 149, and all rights and contentions under the Finance Act, 2021, and in law, shall remain available. The ratio is that notices issued under the unamended Section 148, post-01.04.2021, are to be treated as proceedings under Section 148A, providing a procedural safeguard to the assessee as per the Finance Act, 2021, in line with the Supreme Court's decision under Article 142 of the Constitution.

What were the facts?

This writ petition was filed by Surbhi Agarwal challenging certain actions of the Income Tax Officer, Ward 4(2), Jaipur. The petitioner and the respondent jointly submitted that the issue in this petition is covered by the Supreme Court's order dated 04.05.2022 in the case of Union of India & Others Vs. Ashish Agarwal. The Supreme Court's order dealt with notices issued under Section 148 of the Income Tax Act, 1961, which were subject to challenge before various High Courts. The specific assessment year(s) and the exact nature of the challenge to the Section 148 notices are not detailed in this judgment, but the procedural history indicates that the matter was brought before the High Court via a writ petition.

What were the issues?

1. Whether notices issued under the unamended Section 148 of the Income Tax Act, 1961, which were subject to challenge before various High Courts, shall be deemed to have been issued under Section 148A of the Income Tax Act, 1961, as substituted by the Finance Act, 2021, and construed as show-cause notices in terms of Section 148A(b)? Assessee's Contention: The judgment does not record specific contentions from the assessee for this particular writ petition. However, the joint submission by both parties indicates acceptance of the Supreme Court's ruling. Revenue's Contention: The judgment does not record specific contentions from the revenue for this particular writ petition. However, the joint submission by both parties indicates acceptance of the Supreme Court's ruling.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 10568/2021 Surbhi Agarwal Daughter Of Shri Varinder Kumar Garg, Aged About 33 Years, Resident Of 952, 21St St Main, Bsk, 2Nd Stage, Banglore 560070, Karnataka, India. ----Petitioner Versus Income Tax Officer, Ward 4 (2), Jaipur Having Office At New Central Revenue Building, Bhagwan Dass Road, Jaipur, Rajasthan-302005 ----Respondent For Petitioner(s) : Mr. Prateek Kedawat, Advocate through VC For Respondent(s) : Mr. Amit Malani, Advocate for Mr. Nikhil Simlote, Advocate HON'BLE MR. JUSTICE MANINDRA MOHAN SHRIVASTAVA HON'BLE MRS. JUSTICE SHUBHA MEHTA Order 05/07/2022 When this case came up for hearing today, learned counsel for the parties jointly submitted that the issue raised in this petition would be covered by order dated 04.05.2022 passed by the Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal (Civil Appeal 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 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:-

(2 of 3) [CW-10568/2021] (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 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-à-vis 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 Officer 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 assessees 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 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

(3 of 3) [CW-10568/2021] 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. 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, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the aforesaid extent only. All these appeals are accordingly partly allowed to the aforesaid extent. In the facts of the case, there shall be no order as to costs.” Accordingly, this writ petition is also finally disposed off in terms of order dated 04.05.2022 passed by the Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal (supra), as stated above. The authorities concerned shall proceed to decide the matter in accordance with the directions issued by the Hon’ble Supreme Court in para 10 of the aforesaid order. (SHUBHA MEHTA),J (MANINDRA MOHAN SHRIVASTAVA),J Simple Kumawat /41

More judgments on Section 148

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

Recent GST High Court judgments

Search GST case law →