Allowed

Bindu Bihani v. Union of India and Ors.

Calcutta HC1 Mar 2022WPA/3432/2022

Case brief

AI extract

What is this about?

The Calcutta High Court quashed several income-tax reopening notices issued post-march 31, 2021, citing procedural non-compliance and reliance on prior judgments holding relevant government notifications ultra vires the Relaxation Act, 2020.

What did the court decide?

Quashing of impugned notices under Section 148; Declaration that Explanations A(a)(ii)/A(b) are ultra vires and null and void.

Bindu Bihani Vs Union of India and Ors. — Income Tax | Calcutta HC (2022)

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01.03-2022 Item No.—30 ks

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IN THE HIGH COURT AT CALCUTTA

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Constitutional Writ Jurisdiction Appellate Side

WPA No.2729 of 2022

Sri Anupam Dutta

-vs-

Union of India & Ors. With WPA Nos. 3432/2022.

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Mr. Atanu Biswas, Mr. Prithu Dudhoria, Ms. Namrata Jha

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…for the petitioner.

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Ms. Sucharita Biswas

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…….for the respondents.

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Heard Learned Counsels appearing for the parties.

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In view of involvement of common question of law and similarity of facts in all these Writ Petitions, with the consent of the parties all these Writ Petitions have been heard together and are being decided by the present common judgment and order.

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Common facts and issues involved in all these Writ Petitions as appear on perusal of relevant record and upon considering the submissions of the parties are that the petitioners are aggrieved by the issuance of impugned notices under Section 148 of the Income Tax Act, 1961 on the ground that the same are barred by limitation and the respondent Income Tax Authority concerned, before issuing the impugned notices under Section 148 of the Income Tax

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Act, have not observed the statutory formalities under Section 148 A of the Income Tax Act as prescribed by the Finance Act, 2021 which are applicable with effect from 1^st April, 2021 before issuance of notices under Section 148 of the Act on or after 1^st April, 2021.

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Issues arising in all the present Writ Petitions are purely legal and in all these Writ Petitions the assessees/petitioners have sought relief of quashing of the impugned re-assessment notices issued post 31^st March, 2021 by the respondent Income Tax Authority concerned under Section 148 of the Income Tax Act, assessees/petitioners have also sought relief by way of a declaration declaring Explanations A(a)(ii)/A(b) to the Notification No. 20 [S.O. 1432 (E) dated 31^st March, 2021 and Notification No. 38 [S.O.1703 (E)] dated 27^th April, 2021 to the extent that the same extend the applicability of the “provisions of Section 148, Section 149 and Section 151 of the Act, as the case may be, as they stood as on the 31^st March, 2021, before the commencement of the Finance Act, 2021” to the period beyond 31^st March, 2021 as ultra vires the parent legislation, viz., The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (hereinafter referred to as ‘ Relaxation Act, 2020’).

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At the outset, all the counsels appearing for the parties jointly submitted that the issues involved in these Writ Petitions are covered by the decision of the Division Bench

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of the Allahabad High Court dated 30^th September, 2021 in the case of ‘Ashok Kumar Agarwal –vs- Union of India through its Revenue Secretary North Block & Ors.’ (Writ Tax No. 524/2021) decided in favour of assessees/petitioners on 30.09.2021 and order of Rajasthan High Court dated 25^th November, 2021 in the case of Bpip Infra Private Limited –vs.- Income Tax Officer, Ward 4 (1), Jaipur (S. B. Civil Writ Petition No.13297/2021) and the order of Delhi High Court 15^th December, 2021 in the case of Man Mohan Kohli –vs- Assistant Commissioner of Income Tax & Anr. in (W.P. (C) 6176 of 2021) and judgment and order of this Court dated 17^th January, 2022 in the case of Manoj Jain Vs. Union of India & Ors. in WPA No.11950 of 2021 and in the case of Bagaria Properties and Investment Private Limited & Anr. in WPO 244 of 2021.

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In view of judgments and orders of this Court dated 17^th January, 2022 in the case of Manoj Jain Vs. Union of India & Ors. in WPA No.11950 of 2021 and in the case of Bagaria Properties and Investment Private Limited & Anr. in WPO 244 of 2021, all these writ petitions herein are disposed of by allowing the same. Explanations A(a)(ii)/A(b) to the Notifications dated 31st March, 2021 and 27th April, 2021 are declared to be ultra vires the Relaxation Act, 2020 and are therefore bad in law and null and void. All the impugned notices under Section 148 of the Income Tax Act are quashed with liberty to the Assessing Officers

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concerned to initiate fresh re-assessment proceedings in accordance with the relevant provisions of the Act as amended by Finance Act, 2021 and after making compliance of the formalities as required by the law.

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Urgent certified photo copy of this judgment, if applied for, be supplied to the parties upon compliance with all requisite formalities.

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[Md. Nizamuddin, J]

Bindu Bihani v. Union of India and Ors.

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Bindu Bihani v. Union of India and Ors.

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