PRESTIGE ESTATES PROJECTS LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF APRIL 2022 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR.JUSTICE S. VISHWAJITH SHETTY W.P. No.6128 OF 2022 (T-IT) BETWEEN: PRESTIGE ESTATES PROJECTS LIMITED NO.1, FALCON HOUSE MAIN GUARD CROSS ROAD OFF INFANTRY ROAD, BANGALORE REP. HEREIN BY ITS SR. GM – TAXATION AND COMPANY SECRETARY MR. MANOJ KRISHNA J.V.

... PETITIONER (BY MR. T. SURYANARAYANA, SR. COUNSEL FOR MRS. TANMAYEE RAJKUMAR, ADV.,) AND: 1. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE (2) (2) C.R. BUILDING, QUEENS ROAD BANGALORE-560001. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), C.R. BUILDING QUEENS ROAD, BANGALORE-560001. 3. CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK CENTRAL SECRETARIAT

2 NEW DELHI, DELHI-110001 REPRESENTED BY THE SECRETARY TAX POLICY AND LEGISLATION DIVISION. 4. THE UNION OF INDIA REP. HEREIN BY THE FINANCE SECRETARY MINISTRY OF FINANCE DEPARTMENT OF REVENUE GOVERNMENT OF INDIA NORTH BLOCK, NEW DELHI-110001.

... RESPONDENTS (BY MR. K.V. ARAVIND, ADV., FOR R1 – R3 MR. M.N. KUMAR, FOR R4) - - - THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTIFICATIONS DATED 31.03.2021 AND 27.04.2021 BEARING NOS.20/2021/F.NO.370142/35/2020/TPL AND 38/2021/F.NO.370142/35/2020-TPL, RESPECTIVELY, ISSUED BY THE 3RD RESPONDENT (ANNEXURES-F AND G) TO THE EXTENT THAT THEY EXTEND THE APPLICABILITY OF SECTIONS 148, 149 AND 151 OF THE ACT UNTIL 30/06/2021 AS THEY STOOD PRIOR TO 01.04.2021 AS BEING ULTRA VIRES THE RELAXATION ACT AND THEY IT ACT, AND THEREFORE WITHOUT AUTHORITY OF LAW. QUASHING THE NOTICE DATED 09.04.2021 BEARING NO.ITBA/AST/S/148/2021-22/1032309385(1) ISSUED BY THE 1ST RESPONDENT (ANNEXURE-H) UNDER SECTION 148 OF THE IT ACT, AS BEING WITHOUT JURISDICTION AND THEREFORE ILLEGAL & ETC., THIS W.P. COMING ON FOR ORDERS, THIS DAY, ALOK ARADHE J., MADE THE FOLLOWING:

3 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 (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.

4 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. 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.20/2021 F.NO.370142/35/2020-TPL dated 31.03.2021 and notification No.38/2021 F.No.370142/35/2020-TPL

5 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 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