VIKAS GEMS INC vs. ASSISTANT COMMISSIONER OF INCOME TAX

PDF · subscribers
CW/6348/2022HC RajasthanRJHC02033291202209 May 2022Bench: PRAKASH GUPTA,SAMEER JAIN3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the issue raised in the writ petition was covered by the Supreme Court's decision in Ashish Agarwal. Consequently, the writ petition was disposed of in terms of the Supreme Court's order. The Supreme Court had directed that impugned Section 148 notices, issued under the unamended Section 148, would 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. The assessing officer was directed to provide information and material relied upon by the Revenue to the assessees, who would then have two weeks to reply. The requirement for prior approval of a specified authority under Section 148A(a) was dispensed with as a one-time measure for notices issued under the unamended Section 148 from April 1, 2021, till the date of the Supreme Court's order. The assessing officer was to proceed to pass orders in terms of Section 148A(d) thereafter. The Supreme Court's order was made applicable PAN India and governed pending writ petitions.

What were the facts?

The assessee, Vikas Gems INC, through its partner Shri Yashwant Bafna, filed a writ petition before the High Court of Judicature for Rajasthan, Jaipur Bench. The petition challenged action taken by the Assistant Commissioner of Income Tax, Circle-7. The High Court noted that the issue raised in the petition was covered by a judgment of the Hon'ble Supreme Court of India in the case of Ashish Agarwal. The Supreme Court's order, dated May 4, 2022, dealt with numerous appeals concerning notices issued under Section 148 of the Income Tax Act, 1961, which were issued under the unamended provisions but were subject to challenge. The Supreme Court provided specific directions for such notices.

What were the issues?

1. Whether notices issued under the unamended Section 148 of the Income Tax Act, 1961, prior to the substitution by the Finance Act, 2021, should be deemed to have been issued under Section 148A of the Act and treated as show-cause notices. Assessee's Contention: The judgment does not record specific contentions for the assessee in this writ petition. However, the context implies the assessee sought relief against the impugned notices. Revenue's Contention: The judgment does not record specific contentions for the revenue in this writ petition. However, the Supreme Court's order, which the High Court followed, aimed to provide a uniform approach to such notices.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR WASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 634812022 Vikas Gems INC, H-159, ~ez-11; Jaipur Sitapura Industrial Area, Jaipur Rajasthan Through Its Partner Shri Yashwant Bafna. Versus Assistant Commissioner Of Income Tax, Circle-7, Income Tax enartment. Sidhnath Bhawan.. Dl -,-. _. . . _ ~ -, - ~ Lal Kothi, Behind New Vidhansabha " W ' P < -*.. . ,% .. . ,m4, For Pe. titioV(s) : Mr. Priyesh Kasliwal, Advo%=h Y! $ -. For ~es$?@rident(s) : Mr. Akshay Sharma, AdvocaGeA %? ".X ;x:.. .. 8 HON'BLE M,mUJ 09/05/2022 day, learned counsel for the parties hat the issue raised in this petition is covere 5.2022 passed by the Hon'ble Supreme Co of India & Others Vs. Ashish Agarwal 005/2022 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. 52412021 and other allied tax appeals/petitions, 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 s'hall .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 r e q u i r e r w f a " # q a g any enquiry, if requiredCct$$li $be ~pri'or~~approv,al -#. .a-.s . of specified authoGy""g;.under section 148R~a#f--$s hereby dispwsed with as a one-time measuf??i,s-8-vis tfose; " notices which have been iss Bdeunder '8%- #?-. ' ~ e 8 i o n -% 148 of the unamended A c t F m 9d1.04.2021 ., ,i till date, including those which;:h"8>ve ' .-been quashed by the High Courts. j"&y 2 ved hereinabove holding a approval of specified but it is for o hold any II thereafter pass A(d) in respect of ved hereinabove II thereafter pass orders in ter A(d) in respect of es; Thereafter after section 148 (as available to the le under section s and contentions the concerned assessees a the Finance Act, 2021 and in law shall continue to be available. !sEes; Thereafter after &auired under section 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 afocesaid 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. 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 nlF:: , .-.~.,, . he aforesaid extent. " 0'' In the facts of the case, there sh order as to costs." Accordingly, this in terms of order Supreme Court in th' above. sn is also finally disposed of ed by the Hon'ble I. (supra), as stated The authori proceed to decide the ued by the Hon'ble matter in accordance wi Supreme Court in para Consequen stay application filed t stands disposed of accor the writ petition, the ive and the same also (SAMEER INN),] MRIKuDl17 (PRAKASH GUPTA),]

More judgments on Section 148

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

Recent GST High Court judgments

Search GST case law →