2018 (10) TMI 72 - HC - Income Tax

Declare the provisions of Section 40(a)(ia)as unconstitutional - set aside the Notice issued for rectification - Held that - The respective counsel have produced before us an order to withdraw with liberty to prosecute the remedies available under the Act. In this situation, keeping all contentions open and with liberty to the petitioner to raise the same before appropriate forum and also with leave to file Appeal before the CIT(A), we dispose of the present writ petition.

Summary

Issues:
1. Constitutionality of Section 40(a)(ia) of the Income Tax Act.
2. Applicability of the provision retrospectively from Assessment Year 2005-06.
3. Previous judgments on similar controversies.
4. Decision on pending appeals and doubts about filing appeals.
5. Order permitting withdrawal with liberty to prosecute remedies.
6. Disposal of the writ petition with liberty to raise contentions and file appeals.

Constitutionality of Section 40(a)(ia):
The petitioner sought a declaration of the constitutionality of Section 40(a)(ia) of the Income Tax Act and requested to set aside various notices issued under the Act. It was acknowledged that the provision had been amended and applied retrospectively from the Assessment Year 2005-06.

Previous Judgments and Controversies:
The Court referred to previous judgments, specifically Writ Petition No. 3555 of 2012 and Writ Petition No. 467 of 2010, which dealt with similar controversies. In one case, pending appeals were directed to be decided in accordance with the orders of the Hon’ble Apex Court, addressing doubts about the filing of appeals.

Decision on Pending Appeals and Remedies:
The respective counsels presented an order from 2017 that considered a decision of the High Court in a previous writ petition and allowed the petitioner to withdraw with the liberty to pursue remedies under the Act. The Court granted the petitioner the freedom to raise contentions before the appropriate forum and to file an appeal before the CIT(A).

Conclusion and Disposal of Writ Petition:
In light of the presented information and with the petitioner retaining the right to raise contentions and file appeals, the Court disposed of the present writ petition. The ruling was made without imposing any costs, maintaining an open approach for the petitioner to address the issues through the appropriate channels.