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M/S Innova Captab v. Union of India and Ors.

Himachal Pradesh HC7 Apr 2025CWP/1762/2022

Case brief

AI extract

What is this about?

High Court of Himachal Pradesh, Shimla; CWP No. 1762 of 2022; M/s. Innova Captab v. UOI & ors.; decision 7.4.2025; notice dated 31.3.2021 under Section 148 Income Tax Act treated as notice under Section 148A per Union of India v. Ashish Agarwal, 444 ITR 1, para 10(1); deemed show-cause notice section 148A(b); Finance Act, 2021 substitution; petition disposed of with directions to respondents; pending applications disposed of; Judges Tarlok Singh Chauhan (author) and Sushil Kukreja.

What did the court decide?

Petition disposed of; notice dated 31.3.2021 treated as issued under Section 148A of the Income Tax Act; respondents directed to pursue the matter in accordance with the law laid down in Union of India v. Ashish Agarwal; pending applications, if any, stand disposed of. ¶22

M/S Innova Captab Vs Union of India and Ors. — Income Tax | Himachal Pradesh HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the notice dated 31.3.2021, assailed as issued under Section 148 of the Income Tax Act, is to be treated as a notice issued under Section 148A (deemed show-cause notice under section 148A(b)) in view of Union of India v. Ashish Agarwal, and how the consequent proceedings are to be pursued.

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Court's answer

In view of the judgment of the Hon'ble Supreme Court in Union of India v. Ashish Agarwal, 444 ITR 1, the notice dated 31.3.2021 assailed in this petition as issued under Section 148 of the Income Tax Act is treated to be a notice issued under Section 148A of the Income Tax Act.

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Ratio / Principle

Consequent upon Ashish Agarwal (supra), the proceedings pursuant to the notice are to be followed up according to Section 148A, as is evident from para 10(1) of that judgment, whereby impugned Section 148 notices are deemed issued under Section 148A of the IT Act as substituted by the Finance Act, 2021 and construed as show-cause notices in terms of section 148A(b).

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Key takeaways

The instant petition is disposed of with directions to the respondents to pursue the matter in accordance with the law laid down in Ashish Agarwal's case (supra); pending applications, if any, also stand disposed of.ratio¶23

Detailed headnote1 paragraphs

Income-tax – Writ petition (CWP No. 1762 of 2022) assailing notice dated 31.3.2021 issued under Section 148 of the Income Tax Act – In view of Union of India v. Ashish Agarwal, 444 ITR 1 (Supreme Court), notice treated to be one issued under Section 148A of the Income Tax Act and proceedings to be followed up according to Section 148A, as per para 10(1) of that judgment (impugned Section 148 notices deemed issued under Section 148A of the IT Act as substituted by the Finance Act, 2021 and construed as show-cause notices in terms of section 148A(b)) – Petition disposed of with directions to respondents to pursue the matter in accordance with law laid down in Ashish Agarwal's case – Pending applications, if any, stand disposed of (Division Bench: Tarlok Singh Chauhan & Sushil Kukreja, JJ., 7.4.2025).

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2025:HHC:9431-DB

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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA

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CWP No. 1762 of 2022 Date of Decision: 7.4.2025

M/s. Innova Captab

...petitioner

Versus

UOI & ors.

...Respondents

Coram

Hon’ble Mr Justice Tarlok Singh Chauhan, Judge. Hon’ble Mr Justice Sushil Kukreja , Judge. Whether approved for reporting?¹ No For the petitioner : Mr. Vishal Mohan, Sr. Advocate, with Mr. Parveen Sharma, Advocate.

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For the Respondents : Mr. Balram Sharma, DSGI with Mr. Rajeev Sharma, Advocate, for respondent No.1.

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Mr. Neeraj Sharma, Advocate, with Mr. Ishaan Kashyap, Advocate, for respondents No.2 & 3.

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Tarlok Singh Chauhan, Judge (Oral)

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Even though in this petition, the petitioner has

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assailed the notice dated 31.3.2021 issued by the respondents under Section 148 of the Income Tax Act, however, in view of

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the judgment rendered by the Hon’ble Supreme Court in

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1 Whether reporters of Local Papers may be allowed to see the judgment? Yes.

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2 2025:HHC:9431-DB

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Union of India Vs . Ashish Agarwal, 444 ITR 1 , notice is treated to be the one issued under Section 148A of the Income Tax Act and thereafter, the proceedings have to be followed up according to Section 148A, as is evident from para 10(1) of the judgment supra and the same reads as under:-

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“10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under

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(1) The impugned section 148 notices issued to the respective assesses which were issued unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the showcause notices within two weeks thereafter.”

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