VINOD BIHARI LAL vs. UNION OF INDIA AND 3 OTHERS

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WTAX/1260/2022HC AllahabadUPHC01181211202215 July 20252 pages
AI SummaryRemanded

What did the High Court hold?

The Allahabad High Court held that the communication of the notice under Section 148 of the Income Tax Act, 1961, took place only on April 1, 2021, and not on March 31, 2021. This finding was based on the judgment in Daujee Abhushan Bhandar (P.) Ltd. vs. Union of India. The Court further noted that the Finance Act, 2021, amended the law, requiring the Department to issue a notice under Section 148A of the Act for proceedings initiated after March 31, 2021. Consequently, the impugned notice under Section 148 dated March 31, 2021, and all consequential orders, including the assessment order, were quashed and set aside. The respondent authorities were granted liberty to issue a fresh notice under Section 148A of the Act in accordance with the law. The writ petition was disposed of with these directions.

What were the facts?

The petitioner, Vinod Bihari Lal, filed a writ petition challenging several notices and an assessment order related to Assessment Year (AY) 2014-15. The impugned actions included a notice under Section 148 of the Income Tax Act, 1961, dated March 31, 2021, which was dispatched on the same date but allegedly delivered on April 1, 2021. Also challenged were an assessment order dated March 15, 2022, passed under Sections 147, 144, and 144B, and notices dated August 25, 2022, under Sections 271(1)(c) and 271(1)(b). The petitioner sought to quash these actions and restrain the respondents from proceeding further.

What were the issues?

1. Whether the notice under Section 148 of the Income Tax Act, 1961, dated March 31, 2021, was validly served on the petitioner, considering it was dispatched on March 31, 2021, but allegedly received on April 1, 2021. 2. Whether the assessment proceedings initiated pursuant to the Section 148 notice were valid, given the change in law by the Finance Act, 2021, which mandated the issuance of a notice under Section 148A of the Act. Assessee's Contention: The assessee argued that the Section 148 notice was not validly served on March 31, 2021, as it was received on April 1, 2021. Furthermore, the Department was required to issue a notice under Section 148A of the Act due to the amendments brought about by the Finance Act, 2021, which came into effect after March 31, 2021. Revenue's Contention: The judgment does not record any specific contentions made by the revenue.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 144,Section 144B,Section 271(1)(c),Section 271(1)(b),Section 148A

AI-generated summary — verify with the full judgment below

Neutral Citation No. - 2025:AHC:115271-DB Court No. - 3 Case :- WRIT TAX No. - 1260 of 2022 Petitioner :- Vinod Bihari Lal Respondent :- Union Of India And 3 Others Counsel for Petitioner :- Suyash Agarwal Counsel for Respondent :- A.S.G.I.,Gaurav Mahajan,Gyan Prakash Singh,Krishna Agarawal Hon'ble Shekhar B. Saraf,J. Hon'ble Praveen Kumar Giri,J. 1. Heard learned counsel appearing on behalf of the parties. 2. This is a writ petition under Article 226 of the Constitution of India wherein the writ petitioner has prayed for the following relief:- "(i) Issue a Writ, Order or Direction in the nature of Certiorari quashing the impugned notice u/s 148 of the Act dated 31.03.2021 issued on 01.04.2021 by Respondent No.3, for A.Y. 2014-15. (Annexure No. 2) (ii) Issue a Writ, Order or Direction in the nature of Certiorari quashing assessment order dated 15.03.2022 passed u/s 147 r.w.s. 144 r.w.s. 144B of the act for A.Y 2014-15 passed by the respondent no.4. (Annexure No. 7). (iii) Issue a Writ, Order or Direction in the nature of Certiorari quashing notices dated 25.08.2022 for A.Y 2014-15 u/s 271(1)(c) & section 271(1)(b) of the act issued by respondent no.3. (Annexure No.10). (iv) Issues a Writ, Order or Direction in the nature of prohibition restraining the respondents from giving effect to the assessment order dated 15.03.2022 passed u/s 147 r.w.s. 144 r.w.s. 144B of the act for A.Y 2014-15 passed by the respondent no.4 and proceeding further pursuant to notices dated 25.08.2022 for A.Y 2014-15 u/s 271(1)(c) & section 271(1)(b) of the act during the pendency of the present writ petition. …" 3. Upon perusal of the documents, it appears that notice under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') issued on March 31, 2021, was dispatched on the same date but was delivered to the petitioner only the next date, i.e. April 1, 2021. In light of the same and keeping in mind the judgment delivered by a Division Bench of this Court in the case of Daujee Abhushan Bhandar (P.) Ltd. vs. Union of India reported in [2022] 236 taxmann.com 246 (Allahabad), it has to be held that the communication of the notice under Section 148 of the

Act took place only on April 1, 2021 and not on March 31, 2021. It is to be further noted that by the Finance Act, 2021, the law was changed and subsequent to March 31, 2021, the law came into effect. The Department was, accordingly, required to issue notice under Section 148A of the Income Tax Act, 1961. 4. In light of the above, the impugned notice under Section 148 of the Act dated March 31, 2021 and the consequential orders including any assessment order are quashed and set-aside with liberty granted to the respondent authorities to issue fresh notice under Section 148A of the Act in accordance with law. 5. With the aforesaid directions, the writ petition is disposed of. Order Date :- 16.7.2025 Rakesh (Praveen Kumar Giri J.) (Shekhar B. Saraf, J.) Digitally signed by :- RAKESH MEHTA High Court of Judicature at Allahabad

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