2023 (2) TMI 1378 - HC - Income Tax

Reopening of assessment - Period of limitation to issue notice issued u/s 148A(b) - scope of notices issued u/s 148 of the new regime between July and September 2022 - Application of TOLA to the Income Tax Act after 1 April 2021 - HELD THAT - As in case of Keenara Industries Private Limited 2023 (3) TMI 104 - GUJARAT HIGH COURT , where this Court on the issue of limitation has allowed the plea of petitioner and quashed the notices for the A.Y. 2013- 14 and A.Y.2014-15 issued by the respondent, this petition is also allowed applying the very reasonings without elaborating the same. Resultantly, the petition is allowed quashing and setting aside the notice issued u/s 148 alongwith the order u/s 148A(d) of the self-same date.

Summary

In the case before the Gujarat High Court, the petitioner challenged a notice issued under Section 148 of the Income Tax Act, 1961, dated 23.08.2022, as well as an order under Section 148A(d) of the same date. The petitioner sought relief through a writ of certiorari and mandamus to quash these notices and any further reassessment actions. The challenge was based on the precedent set by the Union of India Vs. Ashish Agarwal and Keenara Industries Private Limited Vs. The Income Tax Officer, Surat, where similar notices for the assessment years 2013-14 and 2014-15 were quashed due to issues of limitation.

The court, presided over by Honourable Ms. Justice Sonia Gokani, applied the reasoning from the Keenara Industries case, which involved the quashing of notices due to limitation issues, and allowed the petition. Consequently, the notice dated 23.08.2022 and the order under Section 148A(d) were quashed. The rule was made absolute to this extent, effectively granting the relief sought by the petitioner.