MAHABIR PARSHAD GARG vs. CENTRAL BOARD OF DIRECT TAXES

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.24478 OF 2021 (T-IT) BETWEEN: MAHABIR PARSHAD GARG AGED ABOUT 61 YEARS 2323, 20TH CROSS BANASHANKARI 2ND STAGE BANGALORE 560 070 KARNATAKA.

... PETITIONER (BY MR. K.R. PRADEEP, ADV.,) AND: 1. CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE MINISTRY OF FINANCE UNION OF INDIA REP. BY ITS SECRETARY NORTH BLOCK, NEW DELHI 110 002. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BANGALORE 560 095. 3. THE INCOME TAX OFFICER WARD 7(2) (5), BANGALORE BMTC BUILDING

2 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA, BANGALORE 560 095. 4. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA REGION GROUND FLOOR, C R BUILDING NO.1 QUEENS ROAD BANGALORE 560 001.

... RESPONDENTS (BY MR. K.V. ARAVIND A/W MR. DILIP M, ADVS.,) - - - THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE IMPUGNED NOTICE DATED 20.04.2021 BEARING NO.ITBA/AST/S/ 148/2021-22/1032552882 (1) ISSUED BY THE 3RD RESPONDENT UNDER SECTION 148 OF THE ACT (ANNXURE -A) FOR THE ASSESSMENT YEAR 2013-14. DECLARING THAT IN THE EVENT IT IS BEING HELD THAT THE IMPUGNED NOTIFICATION DATED 31.03.2021 AND 27.04.2021 BEARING NO.20/2021 AND NO.38/2021 RESPECTIVELY (ANNEXURE - B AND B-1) ISSUED BY THE 1ST RESPONDENT ENABLE THE RESPONDENTS AND THE REVENUE AUTHORITIES TO DISPENSE WITH THE REQUIREMENT TO COMPLY WITH THE CONDITIONS PRECEDENT THAT ARE SET OUT IN SECTION 148 A OF THE INCOME TAX ACT, 1961 BEFORE ISSUING ANY NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT, 1961, THE SAID NOTIFICATION ARE ULTRA VIRES THE PROVISIONS OF THE INCOME TAX ACT, 1961 AND THE PROVISIONS OF THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020, AND THUS BAD IN LAW & ETC., THIS W.P. COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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

4 dated 20.04.2021 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. 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

5 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 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 20.04.2021 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.

6 In the result, the writ petition is disposed of. Sd/- JUDGE Sd/- JUDGE SS