2021 (8) TMI 198 - HC - Income Tax

Reopening of assessment u/s 147 - extension of time limit granted under The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 as ultra vires and respondents cannot unilaterally extend the time period for issuing reopening notices u/s 148 - HELD THAT - There are various other petitions which have been filed and the Court has been pleased to direct notice to respondents and Attorney General for India and one of the lead matter is Tata Communications Transformation Services Limited V/s. Assistant Commissioner of Income Tax 14 (1) 2, Mumbai and others 2021 (8) TMI 195 - BOMBAY HIGH COURT The petitions listed above also require to be considered. Therefore, petitions admitted. Rule made returnable on 13th September 2021. Till next date, no further action be taken on the impugned notices/circulars qua petitioners.

Summary

Issues:
Challenging notices under Section 148 of the Income Tax Act, 1961 and the validity of time limit extensions granted under The Taxation and Other Laws Act, 2020.

Analysis:

1. The petitions challenge the validity of notices issued under Section 148 of the Income Tax Act, 1961, along with notifications and circulars extending time limits. Petitioners argue that the extensions granted under The Taxation and Other Laws Act, 2020 are beyond the authority of the respondents and cannot unilaterally extend the time period for issuing reopening notices under Section 148. The Court has admitted the petitions for consideration.

2. In addition to the above petitions, the Court has directed notices to be issued to the respondents and the Attorney General for India. One of the lead matters mentioned is Writ Petition No.1334 of 2021 - Tata Communications Transformation Services Limited V/s. Assistant Commissioner of Income Tax 14 (1) 2, Mumbai and others. This indicates a broader scope of similar challenges being addressed by the Court.

3. The Court has deemed it necessary to consider the petitions listed, and therefore, has admitted them for further examination. A rule has been made returnable on a specific date for the parties to present their case.

4. Until the next date of hearing, the Court has directed that no further action be taken on the impugned notices and circulars concerning the petitioners. This indicates a temporary halt on any proceedings related to the challenged notices.

5. Notice has been ordered to be issued to the office of the Attorney General for India, suggesting the involvement of the highest law officer in the country in these proceedings.

6. Deadlines have been set for filing replies and rejoinders. Respondents are expected to file their replies by a specified date, with petitioners having the opportunity to file rejoinders within a set timeframe. This structured timeline ensures the progression of the legal process in an organized manner.

7. Any ad-interim orders that may have been issued are to continue until further directives are provided. This ensures that any temporary measures put in place remain effective until a final decision is reached by the Court.