SEEMA SHARMA D/O SHRI RAM KRIPA SHARMA vs. INCOME TAX OFFICER

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CW/6336/2022HC RajasthanRJHC02033224202207 May 2022Bench: MANINDRA MOHAN SHRIVASTAVA,SAMEER JAIN3 pages
AI SummaryRemanded

What did the High Court hold?

The Rajasthan High Court, Jaipur Bench, 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. The Supreme Court had directed that impugned Section 148 notices issued to assessees under the unamended Act, which were subject to writ petitions, shall be deemed to have been issued under Section 148A of the IT Act and construed as show-cause notices under Section 148A(b). The Assessing Officer is to provide information within thirty days, allowing assessees two weeks to reply. The requirement of enquiry under Section 148A(a) was dispensed with as a one-time measure. The Assessing Officers are to pass orders under Section 148A(d) and thereafter issue notices under Section 148 as substituted. Crucially, all defences available to assessees under Section 149 and other rights and contentions under the Finance Act, 2021, and law, are preserved. The Supreme Court's order, passed under Article 142 of the Constitution, is applicable PAN India and modifies judgments of various High Courts to the extent specified. The High Court directed the concerned authorities to proceed in accordance with these directions.

What were the facts?

The petitioner, Seema Sharma, filed a writ petition before the Rajasthan High Court, Jaipur Bench, challenging certain actions of the Income Tax Officer, Ward 7(2), Jaipur. The specific assessment year(s) are not mentioned. The core of the dispute appears to relate to notices issued under Section 148 of the Income Tax Act, 1961. Both the petitioner and the respondent revenue jointly submitted that the issue in this petition is covered by a recent order of the Hon'ble Supreme Court dated 04.05.2022 in the case of Union of India & Others Vs. Ashish Agarwal. The Supreme Court's order dealt with a batch of appeals concerning Section 148 notices issued under the unamended Act.

What were the issues?

1. Whether notices issued under the unamended Section 148 of the Income Tax Act, 1961, which were subject to writ petitions before various High Courts, should be deemed to have been issued under Section 148A of the Income Tax Act, 1961, 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 the joint submission implies acceptance of the Supreme Court's direction. - Revenue's contention: Not explicitly recorded, but the joint submission implies acceptance of the Supreme Court's direction. 2. Whether the requirement of conducting any enquiry, if required, with the 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 01.04.2021 till date? - Assessee's contention: Not explicitly recorded. - Revenue's contention: Not explicitly recorded. 3. Whether all defences available to the assessees, including those under Section 149 of the Income Tax Act, 1961, and all rights and contentions available to both assessees and the Revenue 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

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 6336/2022 Seema Sharma D/o Shri Ram Kripa Sharma, Aged About 47 Years, Resident Of 197, Govind Nagar East, Amer Road, Amer Road, Jaipur, Rajasthan. ----Petitioner Versus Income Tax Officer, Ward 7(2), Jaipur Having Office At Sidhnath Bhawan, Jyoti Nagar Scheme, Lal Kothi Scheme, Behind New Vidhansabha, Janpath, Jaipur, Rajasthan-302005 ----Respondent For Petitioner(s) : Mr. Akarsh Mathur, Adv. For Respondent(s) : Mr. Nikhil Simlote, Adv. with Mr. Amit Malani, Adv. HON'BLE THE ACTING CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE SAMEER JAIN Order 07/05/2022 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-6336/2022] (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 the very issue by challenging similar judgments

(3 of 3) [CW-6336/2022] 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. (SAMEER JAIN),J (MANINDRA MOHAN SHRIVASTAVA),ACTING CJ Arun/JKP/7

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