ABHISHEK ARORA S/O OF SHRI RAJENDRA PRASAD ARORA vs. THE INCOME TAX OFFICER

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CW/5923/2022HC RajasthanRJHC02028175202204 July 2022Bench: MANINDRA MOHAN SHRIVASTAVA,SHUBHA MEHTA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the Supreme Court in Union of India vs. Ashish Agarwal had directed that notices issued under Section 148 prior to April 1, 2021, for assessment years where reassessment proceedings could be initiated, would be deemed to be notices issued under Section 148-A. The respondent confirmed that all prior proceedings, including the assessment order dated March 31, 2022, were being treated as non-est in light of this judgment. The respondent further stated that fresh proceedings were being initiated by issuing a notice under Section 148-A of the Income Tax Act. Given that the respondent was taking steps to issue a fresh notice under Section 148-A, the court found that the present writ petition no longer survived for consideration. The operative direction was to dispose of the petition as it no longer required adjudication on merits.

What were the facts?

The petitioner, Abhishek Arora, filed a writ petition challenging a reassessment notice dated March 31, 2021 (issued on April 1, 2021) for assessment year 2017-18, and an assessment order dated March 31, 2022. The petitioner sought to annul and quash these actions. The respondent, Income Tax Officer, informed the court that following the Supreme Court's judgment in Union of India vs. Ashish Agarwal, all prior proceedings, including the assessment order, were treated as non-est. The respondent stated that fresh proceedings were being initiated by issuing a notice under Section 148-A of the Income Tax Act. The petitioner's counsel contended that the initiation of new proceedings was bad in law.

What were the issues?

1. Whether the reassessment notice dated March 31, 2021, issued under Section 148 of the Income Tax Act for assessment year 2017-18, and the subsequent assessment order dated March 31, 2022, are valid in light of the Supreme Court's decision in Union of India vs. Ashish Agarwal? Assessee's Contention: The petitioner argued that the initiation of new proceedings is bad in law. Revenue's Contention: The respondent submitted that in view of the Supreme Court's judgment in Union of India vs. Ashish Agarwal, all earlier proceedings, including the assessment order, are treated as non-est, and fresh notices under Section 148-A of the Income Tax Act are being issued.

Which sections of the Income-tax Act were involved?

Section 148,Section 148-A

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 5923/2022 Abhishek Arora S/o Of Shri Rajendra Prasad Arora ----Petitioner Versus The Income Tax Officer ----Respondent For Petitioner(s) : Mr. Ashok Kumar Gupta, Advocate For Respondent(s) : Ms. Parinitoo Jain, Advocate HON'BLE MR. JUSTICE MANINDRA MOHAN SHRIVASTAVA HON'BLE MRS. JUSTICE SHUBHA MEHTA Order 04/07/2022 Heard. The relief sought in the writ petition, is as below:- “(a) by an appropriate writ, order or direction be issued for annulling, quashing or cancelling the impugned reassessment notice dated 31.03.2021 issued under Section 148 of the Act on 01.04.2021 for the assessment year 2017-18; (b) to allow the writ petition and award costs of this petition; (c) for such further and other reliefs, as this Hon’ble Court may deem fit and proper in the nature and circumstances of the case; (d) Impugned Assessment order dated 31.03.2022 may kindly be quashed and set aside.” Learned counsel for the respondent would submit that after the judgment of the Hon’ble Supreme Court in the case of Civil

(2 of 2) [CW-5923/2022] Appeal No.3005/2022; Union of India Vs. Ashish Agarwal decided on 04.05.2022, the entire proceedings which have been drawn earlier are treated as nonest including the assessment order dated 31.03.2022. It is submitted that they are proceeding with issuance of fresh notice under Section 148-A of the Income Tax Act. Learned counsel for the petitioner would submit that as initiation of new proceedings is bad in law, the matter requires to be heard. The grievance of the petitioner arises on account of issuance of notice under Section 148 followed by assessment order dated 31.03.2022 which all have become nonest in view of the judgment of Hon’ble Supreme Court in the case of Union of India vs. Ashish Agarwal (supra) as there is a direction to treat such notices under Section 148, as notices under Section 148-A i.e. what has also been stated by the learned State counsel that proceedings with issuance of fresh notice under Section 148-A of the Act. In view thereof, this petition no longer survives for consideration and is therefore, finally be disposed off. (SHUBHA MEHTA),J (MANINDRA MOHAN SHRIVASTAVA),J simple Kumawat /Lakshya/14

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