9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 195 - HC - Income TaxReopening 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 - When effectively the earlier provisions of various sections inter alia of 147 148 etc. as were before 01/04/2021 stand substituted in the circumstances impugned notice dated 21/05/2021 which purports to invoke section 3(1) of The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act 2020 and the notifications thereunder is based on the non-existent earlier provisions of the Income Tax Act 1961 (since been substituted under the provisions of Finance Act 2021) and such a notice cannot be issued and the authority is not empowered to issue the same. He refers to grounds G to N in the petition and contends that section 3 of The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act 2020 and the Notification No.20/2021 dated 31st March 2021 Notification No.38/2021 dated 27 th April 2021 Explanation to clause (A)(a) of Notification No.20/2021 and Explanation to clause (A)(b) of Notification No.30/2021 are ultra-vires the Income Tax Act The Finance Act 2020 and are unconstitutional posing challenge to them urges for striking them down. Issue notice to respondents and Attorney General of India. Respondents waives service of notice and seeks time of four weeks to file reply. Stand over to 02/08/2021.
Issues Involved:
Challenge to the validity of a notice under section 148 of the Income Tax Act, 1961 based on the substitution of provisions by the Finance Act, 2021. Analysis: The petitioner, represented by Mr. Jehangir Mistri, Senior Advocate, challenged the impugned notice issued under section 148 of the Income Tax Act, 1961, dated 21/05/2021, on various grounds. The petitioner argued that the notice was untenable as it invoked provisions of the Income Tax Act that had been substituted by the Finance Act, 2021, effective since 01/04/2021. Mr. Mistri contended that the notice relied on non-existent earlier provisions of the Income Tax Act, 1961, which had been substituted under the Finance Act, 2021. He specifically referred to the provisions of section 3(1) of The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act, 2020, along with notifications dated 31st March, 2021, and 27th April, 2021, arguing that they were ultra vires the Income Tax Act and the Finance Act, 2020, and unconstitutional. The petitioner urged the court to strike down these provisions. The court, comprising of SUNIL P. DESHMUKH & ABHAY AHUJA, JJ., issued notice to the respondents and the Attorney General of India regarding the challenge raised by the petitioner. Mr. Suresh Kumar, learned Counsel for the respondents, waived the service of notice and requested four weeks to file a reply. The court granted the requested time and scheduled the matter for further hearing on 02/08/2021. Additionally, the court ordered that no further action should be taken based on the impugned notice until the next hearing date, effectively staying any proceedings related to the notice until the legal issues raised were addressed and resolved.
|
