MANMEET KAPOOR S/O SH G P S KAPOOR vs. INCOME TAX OFFICE

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CW/6800/2022HC RajasthanRJHC02034927202209 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 Union of India & Others vs. Ashish Agarwal. The Supreme Court had directed that impugned Section 148 notices, issued under the unamended Section 148 of the IT Act, which were subject to 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 were to be treated as show-cause notices in terms of Section 148A(b). The Assessing Officer was directed to provide information and material relied upon by the Revenue to the assessees within thirty days, allowing assessees two weeks thereafter to reply. The Supreme Court's order was made applicable PAN India and governed all pending writ petitions challenging similar notices issued after April 1, 2021. The High Court disposed of the writ petition in terms of the Supreme Court's order.

What were the facts?

The writ petition was filed by Manmeet Kapoor against the Income Tax Office, Circle 1, Alwar. The petitioner sought to challenge notices issued under Section 148 of the Income Tax Act, 1961. The High Court noted that the issue raised in the petition was covered by a judgment of the Supreme Court of India in Union of India & Others vs. Ashish Agarwal (Civil Appeal No. 7005/2022 and batch of appeals). The Supreme Court's order dealt with the validity of Section 148 notices issued under the unamended Section 148 of the IT Act, which were subject to writ petitions before various High Courts. The Supreme Court's decision was made on May 9, 2022.

What were the issues?

1. Whether Section 148 notices issued under the unamended provisions of the Income Tax Act, 1961, which were subject to challenge before various High Courts, should be deemed to have been issued under the substituted Section 148A of the Act, as amended by the Finance Act, 2021? (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. The matter was decided based on the Supreme Court's ruling. Revenue's Contention: The judgment does not record any specific contentions made by the revenue before the High Court. The matter was decided based on the Supreme Court's ruling.

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 RAIASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 680012022 Manmeet Kapoor S/o Sh G P S Kapoor, Aged About 49 Years, Rlo Kailash Colony, Near Govt. Children Hospital, Alwar, Rajasthan. Versus Income Tax Office, Circle 1, Alwar, C.R. Building, Moti Doongari , Road, Alwar, Rajasthan - , T -wW+ 3- ,,&N : ----Respondent ' $-q%. $.a , ,. s*". %< .2"" '".,;b" .- . u"""? "' . . , ,# - -. %#**- -*- For Petition&g(,s), : Mr. Mahendra ~ a r ~ i e i & ~ % k o c a t e 8%- 2- ~ P F * Mr Manmeet Kapoor, petitloner PQJ present in person For Respo'ndent(s) 4 : Mr. Akshay Sharma, Advocaz - 33 HON'BLE d&jll m AWASH GUPTA 09/05/2022 r hearing today, learned at the issue raised in this petition is cover .2022 passed by the ion'ble Supreme Cou of India & Others Vs. Ashish Agarwal (GwiI A"ppeal-.~o.>005/2022 and batch drqyv \aqedn 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 t h e reasons stated above, the present ~ p p e a l s 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, 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 IT Act a s , 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, s o t h a t the assessees can reply to the show-cause notices within two weeks thereafter; been quashed by the High Courts. ved hereinabove I thereafter pass uired under section section 148 (as available to the le under section s and contentions the Finance Act, ed hereinabove I thereafter pass 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 a s 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 e r a s to costs." ition is also finally disposed of Accordingly, this on is also finally disposed of in terms of order ed by the Hon'ble Supreme Court in th I (supra), a s stated above. proceed to decide the matter in accordance issued by the Hon'ble Supreme Court in para the writ petition, the stay application filed ive and the same also stands disposed of acc r .a1 gct~ons issued by the Hon'ble a :lJ (SAMEER lAIN),I (PRAKASH GUPTA),J

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