G K SHELTERS PRIVATE LIMITED vs. INCOME TAX OFFICER

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WP/6412/2022HC KarnatakaKAHC01013731202219 April 2022Bench: ALOK ARADHE,S VISHWAJITH SHETTY5 pages
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What did the High Court hold?

The High Court declared the explanation below Clause (A) in the relevant notifications as ultra vires the Income Tax Act, 1961, and the Taxation and Other Laws Act, 2020. Consequently, the impugned notice issued under Section 148 was quashed.

What were the facts?

The petitioner sought to quash a notice issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2016-17. The petitioner also challenged certain notifications and argued that the extension of time limits under the Taxation and Other Laws Act, 2020, did not apply to notices issued after April 1, 2021.

What were the issues?

Whether the notifications extending time limits were ultra vires the Income Tax Act and the Taxation and Other Laws Act, and if such extensions applied to notices issued after April 1, 2021.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF APRIL 2022 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR.JUSTICE S. VISHWAJITH SHETTY W.P. No.6412 OF 2022 (T-IT) BETWEEN: G K SHELTERS PRIVATE LIMITED REP. BY DIRECTOR SRI K. NARASIMHULU NAIDU S/O KRISHNAMANA NAIDU AGED 64 YEARS NO.27-44/140, 4TH FLOOR 9TH MAIN ROAD, 3RD BLOCK JAYANAGAR, BANGALORE – 560 011.

... PETITIONER (BY MR. SHREEHARI, ADV.,) AND: 1. INCOME TAX OFFICER WARD -3(1)(1), BMTC BUILDING 100 FEET ROAD

KORAMANGALA BENGALURU-560095. 2. UNION OF INDIA REP. BY THE DIRECTOR DEPT OF REVENUE MINISTRY OF FINANCE ROOM NO.46, NORTH BLOCK NEW DELHI – 110 001. 3. CENTRAL BOARD OF DIRECT TAXES THROUGH THE CHAIRMAN

2 NORTH BLOCK NEW DELHI-110001.

... RESPONDENTS (BY MR. K.V. ARAVIND, A/W MR. DILIP .M, ADVOCATES) - - -

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE DATED 30/06/2021 ISSUED UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 BY THE RESPONDENT NO.1, FOR THE ASSESSMENT YEAR 2015-16, BEARING DIN AND NOTICE NO. ITBA/AST/S/148/2021-22/1033936795(1) HEREIN MARKED AS ANNEXURE-A & ETC., THIS W.P. COMING ON FOR PRELIMINARY HEARING, THIS DAY, ALOK ARADHE J., MADE THE FOLLOWING: ORDER The petitioner in this writ petition has sought quashment of explanation below Clause (A) in the notification bearing No.20/2021 F.NO.370142/35/2020-TPL dated 31.03.2021 and notification No.38/2021/F.No.370142/35/2020-TPL dated 27.04.2021 issued by Central Board of Direct Taxes, as ultra vires the provisions of Income Tax Act, 1961 (hereinafter referred to as ‘1961 Act’ for short) and the provisions of Taxation and Other Laws

3 (Relaxation and Amendment of Certain Provisions) Act, 2020 (hereinafter referred to as ‘2020 Act’ for short). The petitioner has also prayed for relief that extension of time limit by the 2020 Act does not apply to notices issued under erstwhile Section 148 of the 1961 Act, after 01.04.2021. The petitioner also seeks a writ of certiorari for quashing the notices dated 30.06.2021 issued under Section 148 of the 1961 Act for the Assessment year 2016-17. 2. We have heard the learned counsel at length. For the reasons assigned by us in the judgment dated 19.04.2022 passed in W.P.No.22348/2021 and for the reasons assigned by division bench of High Court of Allahabad in ASHOK KUAR AGARWAL VS. UNION OF INDIA’, Rajasthan High Court in ‘BPIP INFRA (P.) LTD. VS. INCOME TAX OFFICER, WARD 4(1), JAIPUR, Delhi High Court decision in MON MOHAN KOHLI VS.

4 ASSISTANT COMMISSIONER OF INCOME TAX & ANR. And decision of Bombay High Court in TATA COMMUNICATIONS TRANSFORMATION SERVICES LIMITED, VS. ASSISTANT COMMISSIONER OF INCOME TAX 14(1) AND OTHERS, W.P.NO.1334/2021 the explanation below Clause (A) in the notification bearing No.20/2021370142/35/2020-tl dated 31.03.2021 and notification No.38/2021f. No.370142/35/2020- TPL dated 27.04.2021 issued by Central Board of Direct Taxes is hereby declared as ultra vires the provisions of Income Tax Act, 1961 and the provisions of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The impugned notice dated 30.06.2021 issued under Section 148 of the Act is quashed. 3. However, it will be open to the Assessing Officer concerned to initiate fresh re-assessment

5 proceeding in accordance with relevant provisions of the 1961 Act as amended by Finance Act, 2021 after strictly complying with the provisions of the Act. In the result, the writ petition is disposed of. Sd/- JUDGE Sd/- JUDGE SS

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