Chhattisgarh High Court Judgments — 2021

The High Court held that the writ petition was not maintainable at a premature stage due to the availability of alternative efficacious remedies. The court noted that the petitioner has remedies under Sections 246-A, 254, and 260-A of the Income Tax Act, 1961. The reasoning was that these statutory remedies provide a structured mechanism for addressing grievances related to assessment orders, including those involving alleged procedural violations. The court did not decide on the merits of the petitioner's claim regarding the violation of Section 144-B(7)(vii). Instead, it granted the petitioner three weeks' time to prefer an appeal before the appropriate authorities. These authorities were directed to consider and decide the appeal on its merits expeditiously and in accordance with the law. No issue was expressly left undecided, as the court's decision was based on the maintainability of the writ petition.

The High Court held that the notice issued under Section 148 of the Income Tax Act, 1961, on March 30, 2021, was valid. The Court referred to the Taxation & Others Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, and subsequent notifications issued by the Ministry of Finance. These notifications, particularly dated March 31, 2021, and April 27, 2021, extended the time limits for actions under the Income Tax Act, including the issuance of notices under Section 148. The notification dated April 27, 2021, specifically extended the time limit for issuing notices under Section 148 (as per Section 149 or sanction under Section 151) to June 30, 2021. Crucially, it clarified that for the purpose of issuing notices under Section 148 as per the time limit specified in Section 149 or sanction under Section 151, the provisions of Sections 148, 149, and 151 as they stood on March 31, 2021, before the commencement of the Finance Act, 2021, would apply. This effectively meant that the reassessment mechanism prevalent before the amendment, including the procedure for issuing Section 148 notices without the mandate of Section 148A, was saved and extended until June 30, 2021. Therefore, the notice issued on March 30, 2021, was within the permissible time frame and saved by the notifications. The Court found no interference was required, and the petition was dismissed.

The High Court held that the notice issued under Section 148 of the Income Tax Act, 1961, on March 31, 2021, was valid. The Court reasoned that the Taxation & Others Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, empowered the Central Government to extend time limits due to the pandemic. Notifications issued under this Act, specifically dated March 31, 2021, and April 27, 2021, extended the time for actions like issuing notices under Section 148. The notification dated April 27, 2021, further extended the time limit for issuing notices under Section 148 (as per Section 149 and sanction under Section 151) to June 30, 2021. Crucially, the explanation to this notification clarified that for issuing notices under Section 148 as per Section 149 or sanction under Section 151, the provisions of Sections 148, 149, and 151 as they stood on March 31, 2021, before the commencement of the Finance Act, 2021, would apply. This effectively meant that the old regime for issuing Section 148 notices was preserved and extended until June 30, 2021. Therefore, the notice issued on March 31, 2021, was within the extended period and valid. The petition was dismissed.

The High Court held that the notice issued under Section 148 of the Income Tax Act, 1961, on 09.06.2021, is valid. The Court reasoned that the Taxation & Others Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, empowered the Central Government to extend time limits due to the pandemic. Notifications dated 31.03.2021 and 27.04.2021, issued by the Ministry of Finance, extended the time for issuing notices under Section 148. Specifically, the notification dated 27.04.2021 further extended the deadline to 30.06.2021. The Court found that these notifications effectively saved the reassessment mechanism prevalent before the amendment and insulated the application of Section 148 until 30.06.2021. Therefore, the notice issued on 09.06.2021, within this extended period, was considered valid. The Court concluded that the provisions of Section 148, as they existed prior to the amendment, were extended, and the power to issue notice under the old Section 148 was saved. Consequently, no interference was required with the issuance of the notice.

The High Court held that the notices issued under Section 148 of the Income Tax Act, 1961, on June 25, 2021, and June 30, 2021, are valid. The Court reasoned that the Taxation & Others Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, empowered the Central Government to extend time limits due to the pandemic. Notifications dated March 31, 2021, and April 27, 2021, issued by the Ministry of Finance, extended the time for issuing notices under Section 148. Specifically, the notification dated April 27, 2021, further extended the time limit to June 30, 2021. The Court found that these notifications effectively saved the reassessment mechanism prevalent prior to March 31, 2021, and extended the time for issuing notices under the old Section 148 until June 30, 2021. The Court concluded that the notices issued within this extended period were saved and therefore legal. The ratio decidendi is that executive notifications extending statutory time limits, issued under specific delegated powers to mitigate the impact of unforeseen circumstances like a pandemic, are valid and can preserve the operation of pre-amendment provisions, even if new provisions have been enacted but their applicability is deferred or extended by such notifications. The petition was dismissed.

The High Court dismissed the petitions, holding that the notices issued under Section 148 of the Income Tax Act, 1961, on June 30, 2021, were valid. The Court reasoned that the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, empowered the Central Government to extend time limits due to the pandemic. Notifications issued by the Ministry of Finance, specifically dated March 31, 2021, and April 27, 2021, extended the time limit for issuing notices under Section 148. The notification dated April 27, 2021, further extended the deadline to June 30, 2021. The Court found that these notifications effectively insulated and saved the provisions of Section 148 as they stood prior to the amendment by the Finance Act, 2021, up to June 30, 2021. Consequently, the notice issued on June 30, 2021, was considered to be within the extended period of operation of the pre-amendment Section 148, and thus valid. The Court concluded that no interference was required with the issuance of these notices.

The High Court dismissed the petitions, holding that the notices issued under Section 148 of the Income Tax Act, 1961, on June 30, 2021, were valid. The Court reasoned that the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, empowered the Central Government to extend time limits due to the pandemic. Notifications issued by the Ministry of Finance, specifically dated March 31, 2021, and April 27, 2021, extended the time limit for issuing notices under Section 148. The notification dated April 27, 2021, further extended the deadline to June 30, 2021. The Court found that these notifications effectively insulated and saved the provisions of Section 148 as they stood prior to the amendment by the Finance Act, 2021, up to June 30, 2021. Consequently, the notice issued on June 30, 2021, was considered to be within the extended period of operation of the pre-amendment Section 148, and thus valid. The Court concluded that no interference was required with the issuance of these notices.

The High Court dismissed the petition. The Court acknowledged that Section 148A of the Income Tax Act, 1961, was inserted by the Finance Act, 2021, and was to come into force from April 1, 2021. However, it referred to notifications dated March 31, 2021, and April 27, 2021, issued under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. These notifications, in exercise of delegated power, extended the time limit for actions under the Income Tax Act, including the issuance of notices under Section 148. Specifically, the notification dated April 27, 2021, extended the time limit for issuing notices under Section 148, as per the time limit specified in Section 149, to June 30, 2021. The Court held that this extension effectively saved the mechanism prevalent prior to March 31, 2021, for issuing Section 148 notices until June 30, 2021. Therefore, the notice issued on June 30, 2021, was considered valid as it was within the extended period. The Court found no reason to interfere with the issuance of the notice.

The High Court held that the notices issued under Section 148 of the Income Tax Act, 1961, on June 28, 2021, were valid. The Court referred to notifications dated March 31, 2021, and April 27, 2021, issued under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. These notifications, in partial modification of earlier ones, extended the time limit for actions including the issuance of notice under Section 148. Specifically, the notification dated April 27, 2021, extended the time limit for issuing a notice under Section 148, as per the time limit specified in Section 149 or sanction under Section 151, which was expiring on April 30, 2021, further to June 30, 2021. The Court reasoned that by effect of these notifications, the individual identity of Section 148, as it prevailed prior to the amendment and insertion of Section 148A, was insulated and saved until June 30, 2021. The Court found that the power to issue notice under Section 148, prior to the amendment, was saved and the time was extended, thus validating the notice issued on June 28, 2021. Consequently, no interference was required.

The High Court dismissed the petition. The Court noted that the notice under Section 148 was issued for Assessment Year 2017-18 on June 28, 2021. The petitioner's grievance was that the notice was issued after the intervention of Section 148A, which came into effect on April 1, 2021, and mandates certain procedural compliances. However, the Court referred to notifications dated March 31, 2021, and April 27, 2021, issued under the Taxation & Others Laws (Relaxation & Amendment of Certain Provisions) Act, 2020. These notifications extended the time limit for actions, including the issuance of notice under Section 148, initially to April 30, 2021, and then further to June 30, 2021. The Court held that by virtue of these notifications, the provisions of Section 148, as they existed prior to the amendment by the Finance Act, 2021, were saved and their application was extended up to June 30, 2021. Therefore, the notice issued on June 28, 2021, was considered valid and saved by these extensions. The Court found no reason to interfere with the issuance of the notice.

The High Court held that the notices issued under Section 148 of the Income Tax Act, 1961, on June 28, 2021, were valid. The Court referred to notifications dated March 31, 2021, and April 27, 2021, issued under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. These notifications, in partial modification of earlier ones, extended the time limit for actions including the issuance of notice under Section 148. Specifically, the notification dated April 27, 2021, extended the time limit for issuing a notice under Section 148, as per the time limit specified in Section 149 or sanction under Section 151, which was expiring on April 30, 2021, further to June 30, 2021. The Court reasoned that by effect of these notifications, the individual identity of Section 148, as it prevailed prior to the amendment and insertion of Section 148A, was insulated and saved until June 30, 2021. The Court found that the power to issue notice under Section 148, prior to the amendment, was saved and the time was extended, thus validating the notice issued on June 28, 2021. Consequently, no interference was required.

The High Court held that the notices issued under Section 148 of the Income Tax Act on June 30, 2021, were valid. The Court reasoned that the Taxation & Others Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, empowered the Central Government to extend time limits due to the pandemic. Notifications dated March 31, 2021, and April 27, 2021, were issued under this Act. The notification dated April 27, 2021, specifically extended the time limit for issuing notices under Section 148, as per the time limits specified in Section 149 or sanction under Section 151, to June 30, 2021. The Court found that this extension effectively insulated and saved the provisions of Section 148 as they stood prior to the amendment by the Finance Act, 2021, until June 30, 2021. Therefore, the notice issued on June 30, 2021, was within the extended period of validity, and no interference was required. The petitions were dismissed.

The High Court held that the notices issued under Section 148 of the Income Tax Act on June 30, 2021, were valid. The Court reasoned that the Taxation & Others Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, empowered the Central Government to extend time limits due to the pandemic. Notifications dated March 31, 2021, and April 27, 2021, were issued under this Act. The notification dated April 27, 2021, specifically extended the time limit for issuing notices under Section 148, as per the time limits specified in Section 149 or sanction under Section 151, to June 30, 2021. The Court found that this extension effectively insulated and saved the provisions of Section 148 as they stood prior to the amendment by the Finance Act, 2021, until June 30, 2021. Therefore, the notice issued on June 30, 2021, was within the extended period of validity, and no interference was required. The petitions were dismissed.