9911796707
TMI Blog2022 (4) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... ed provisions of Sections 147 to 151 of the Act will apply for the purposes of issue of notices under Section 148 of the Act, which is clearly ultra vires Relaxation Act. Reopening notices issued after 1st April, 2021 are unsustainable and bad in law even if one was to apply the Explanations to the Notification Nos.20 of 2021 and 38 of 2021. The Explanation seeks to extend the applicability of erstwhile Sections 148, 149 and 151. The impugned Explanation does not cover Section 147, which (as amended) empowers the revenue to reopen an assessment subject to Sections 148 to 153, which includes Section 148A. Thus, even if Explanations are valid, the mandatory procedure laid down by Section 148A has not been followed and hence, without anything further, the notices u/s 148 of the Act are invalid and must be struck down for this reason as well. This proposition has also been upheld by the Delhi High Court. As regards Revenue s arguments that Relaxation Act being a beneficial legislation must be given purposive interpretation , the purpose of Section 3(1) of Relaxation Act is to extend limitation periods as provided in a specified Act (including the Income-tax Act). The purpose of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 29-3-2022 - K.R. SHRIRAM N.J. JAMADAR, JJ. WP/1300/2021 WITH WP(L.)/19303/2021 WITH WP(L.)/ 19311/2021 WITH WP/2830/2021 WITH WP/3374/2021 WITH WP/3289/2021 WITH WP/2467/2021 WITH WP/2468/2021 WITH WP/2470/2021 WITH (940) WP/2037/2021, (941) WP/2242/2021, (942) WP/2326/ 2021, (943) WP/2327/2021, (944) WP/2330/2021, (945) WP/ 2333/2021, (946) WP/2531/2021, (947) WP/2578/2021, (948) WP/2650/2021, (949) WP/2664/2021, (950) WP/2703/2021, (951) WP/2742/2021, (952) WP/2749/2021, (953) WP/2930/ 2021, (954) WP/2946/2021, (955) WP/3279/2021, (956) WP/ 3281/2021, (957) WP/3295/2021, (958) WP/3316/2021, (959) WP/3489/2021, (960) WP/3537/2021, (961) WP/3749/ 2021, (962) WP/3762/2021, (963) WP/3934/2021, (964) WP/ 3936/ 2021, (965) WP/3939/2021, (966) WP/3940/2021, (967) WP/ 3943/2021 (968) WP/3965/2021, (969) WP/3172/2021, (970) WP/3678/2021, (971) WP/3566/2021, (972) WP/3584/ 2021, (973) WP/3567/2021, (974) WP/3565/2021, (975) WP/ 3575/2021, (976) WP(L.)/25606/2021, (977) WP(L.)/30142/ 2021, (978) WP(L.)/30201/2021, (979) WP(L.)/31306/2021, (980) WP(L.)/31332/2021, (981) WP(L.)/31339/2021, (982) WP (L.)/31350/2021, (984) WP(L.)/31364/2021, (985) WP(L.)/ 31442/2021, (986) WP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1097) WP/ 362/2022, (1098) WP/370/2022, (1099) WP/375/2022, (1100) WP/377/2022, (1101) WP/383/2022, (1102) WP/394/2022, (1103) WP/395/ 2022, (1104) WP/396/ 2022, (1105) WP/398/ 2022, (1106) WP/400/2022, (1107) WP/405/2022, (1108) WP/ 407/2022, (1109) WP/412/2022, (1110) WP/413/2022, (1111) WP/414/ 2022, (1112) WP/417/ 2022, (1113) WP/418/2022, (1114) WP/421/2022, (1115) WP/422/2022, (1116) WP/427/ 2022, (1117) WP/430/2022, (1118) WP/432/2022, (1119) WP/ 436/ 2022, (1120) WP/450/ 2022, (1121) WP/458/2022, (1122) WP/460/2022, (1123) WP/461/2022, (1124) WP/470/ 2022, (1125) WP/472/2022, (1126) WP/473/2022, (1127) WP/ 479/ 2022, (1128) WP/481/ 2022, (1129) WP/484/2022, (1130) WP/488/2022, (1131) WP/489/2022, (1132) WP/494/ 2022, (1133) WP/496/2022, (1134) WP/497/2022, (1135) WP/498/ 2022, (1136) WP/499/ 2022, (1137) WP(L.)/502/2022 WITH WP/646/2022, (1138) WP/505/2022, (1139) WP/507/ 2022, (1140) WP/509/2022, (1141) WP/512/2022, (1142) WP/515/ 2022, (1143) WP/518/ 2022, (1144) WP/519/2022, (1145) WP/ 521/2022, (1146) WP/523/2022, (1147) WP/527/2022, (1148) WP/530/2022, (1149) WP/531/2022, (1150) WP/536/2022, (1151) WP/537/ 2022, (1152) WP/538/2022, (1153) WP/539/ 2022, (1154) WP/541/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 940/2022, (1269) WP/ 959/2022 WITH WP/952/2022, (1270) WP/965/ 2022, (1271) WP(L.)/972/2022, (1272) WP/983/2022, (1273) WP/995/2022, (1274) WP/1006/2022, (1275) WP/663/2022, (1276) WP(L.)/ 1116/2022, (1277) WP(L.)/1323/2022, (1278) WP/710/2022, (1279) WP/698/2022, (1280) WP/741/2022, (1281) WP/867/ 2022, (1282) WP(L.)/1651/2022, (1283) WP(L.)/1652/2022, (1284) WP(L.)/1653/2022, (1285) WP/1034/ 2022, (1286) WP/ 818/2022, (1287) WP(L.)/1702/2022, (1288) WP(L.)/2058/2022, (1289) WP/881/2022, (1290) WP(L.)/2141/ 2022, (1291) WP(L.) /2154/2022, (1292) WP(L.)/2373/2022, (1293) WP(L.)/ 2386/2022, (1294) WP(L.)/2410/2022, (1295) WP/1003/2022, (1296) WP(L.)/2434/2022, (1297) WP/1057/ 2022, (1298) WP/ 997/2022, (1299) WP/1048/2022, (1300) WP/1049/2022, (1301) WP(L.)/2526/2022, (1302) WP(L.)/2527/ 2022, (1303) WP(L.)/ 2530/2022, (1304) WP/1033/2022, (1305) WP/921/2022, (1306) WP/1035/2022, (1307) WP(L.)/2595/2022, (1308) WP(L.)/ 2597/2022, (1309) WP(L.)/2621/2022, (1310) WP/922/ 2022, (1311) WP(L.)/2671/2022, (1312) WP(L.)/2811/2022, (1313) WP(L.)/3057/2022, (1314) WP(L.)/3092/2022, (1315) WP(L.)/3143/2022, (1316) WP(L.)/3151/2022, (1317) WP/845/ 2022, (1318) WP(L.)/3182/2022, (1319) WP(L.)/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21, (1423) WP/1891/2021, (1424) WP/1892/2021, (1425) WP/1896/2021, (1426) WP/1898/2021, (1427) WP/1991/2021, (1428) WP/1992/2021, (1429) WP/1994/2021, (1430) WP/1998/ 2021, (1431) WP/2002/2021, (1432) WP/2012/2021, (1433) WP/2017/2021, (1434) WP/2018/2021, (1435) WP/2024/2021, (1436) WP/2033/2021, (1437) WP/2052/2021, (1438) WP/2065/ 2021, (1439) WP/2070/2021, (1440) WP/2081/2021, (1441) WP/2098/2021, (1442) WP/2099/2021, (1443) WP/2100/2021, (1444) WP/2103/2021, (1445) WP/2105/2021, (1446) WP/2111/ 2021, (1447) WP/2112/2021, (1448) WP/2153/2021, (1449) WP/2198/2021, (1450) WP/2205/2021, (1451) WP/2208/2021, (1452) WP/2245/2021, (1453) WP/2251/2021, (1454) WP/2257/ 2021, (1455) WP/2307/2021, (1456) WP/2309/2021, (1457) WP/2317/2021, (1458) WP/2328/2021, (1459) WP/2332/2021, (1460) WP/2339/2021, (1461) WP/2380/2021, (1462) WP/2400/ 2021, (1463) WP/2402/2021, (1464) WP/2408/2021, (1465) WP/2416/2021, (1466) WP/2435/2021, (1467) WP/2438/2021, (1468) WP/2484/2021, (1469) WP/2485/2021, (1470) WP/2489/ 2021, (1471) WP/2493/2021, (1472) WP/2497/2021, (1473) WP/2499/2021, (1474) WP/2505/2021, (1475) WP/2507/2021, (1476) WP/2509/2021, (1477) WP/2510/2021, (1478) WP/2511/ 2021, (1479) WP/251 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... WP/3876/2021, (1598) WP/3881/2021, (1599) WP/3882/2021, (1600) WP/3883/2021, (1601) WP/3885/2021, (1602) WP/3891/ 2021, (1603) WP/3893/2021, (1604) WP/3895/2021, (1605) WP/3915/2021, (1606) WP/3949/ 2021, (1607) WP/3975/2021, (1608) WP/3354/2021, (1609) WP/3417/2021, (1611) WP/3359/ 2021, (1612) WP/3478/2021, (1613) WP/336/2022, (1614) WP/3441/2021, (1615) WP/3055/ 2021, (1616) WP/3037/2021, (1617) WP/3040/2021, (1618) WP/3038/2021, (1619) WP/3029/ 2021, (1620) WP/3034/2021, (1621) WP/3036/2021, (1622) WP/3033/2021, (1623) WP/3357/ 2021, (1624) WP/3328/2021, (1625) WP/3348/2021, (1626) WP/3724/2021, (1627) WP/278/2 022, (1628) WP/214/2022, (1629) WP/277/2022, (1630) WP/272/2022, (1631) WP/268/ 2022, (1632) WP/3382/2021, (1633) WP/3557/2021, (1634) WP/3425/2021, WITH WP/3461/ 2021, WITH WP/3465/2021, WITH WP/3457/2021, WITH WP/3454/2021, WITH WP/3458/ 2021, WITH WP/3103/2021, WITH WP/3144/2021, (1635) WP/3631/2021, (1636) WP/3431/ 2021, (1637) WP/3813/2021, (1638) WP/3551/2021, (1639) WP/3745/2021, (1640) WP/3046/ 2021, (1641) WP/3035/2021, (1642) WP/3621/2021, (1643) WP/3090/2021, (1644) WP/3651/ 2021, (1645) WP/3028/2021, (1646) WP/3637/2021, (1647) WP/3091/2021, (1648) WP/3030/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9) WP/3240/2021, (1760) WP/3764/2021, (1761) WP/3216/2021, (1762) WP(L.)/ 16812/2021, (1763) WP/3420/2021, (1764) WP/3261/2021, (1765) WP/3355/2021, (1766) WP/3251/2021, (1767) WP/3258/ 2021, (1768) WP/3632/2021, (1769) WP/3559/2021, (1770) WP/3250/2021, (1771) WP/3252/2021, (1772) WP/3264/2021, (1773) WP/3253/2021, (1774) WP/3343/2021, (1775) WP/148/ 2022, WITH WP/3347/2021, (1776) WP/3366/2021, (1777) WP/3337/2021, (1778) WP/3334/2021, (1779) WP/3190/2021, (1780) WP/3356/2021, (1781) WP/3819/2021, (1782) WP/3384/ 2021, (1783) WP/3364/2021, (1784) WP/3689/2021, (1785) WP/3690/2021, (1786) WP/3718/2021, (1787) WP/3445/2021, (1788) WP/3455/2021, (1789) WP/3391/2021, (1790) WP/3409/ 2021, (1791) WP/3390/2021, (1792) WP/614/2022, (1793) WP/3408/2021, (1794) WP/3203/2021, (1795) WP/3630/2021, (1796) WP/3807/2021, (1797) WP/3205/2021 WITH WP/3212/ 2021, WITH WP/3204/2021, WITH WP/3231/2021, WITH WP/3233/2021, (1798) WP/3177/2021, (1799) WP/3176/2021, (1800) WP/3184/2021, (1801) WP/3187/2021, (1802) WP/3178/ 2021, (1803) WP/3170/2021, (1804) WP/3180/2021, (1805) WP(L.)/17719/2021, (1806) WP/3446/2021, (1807) WP/3165/ 2021, (1808) WP/3098/2021, (1809) WP/3210/2021, (1810) WP/3122/2021, (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /3507/2021, (1920) WP(L.)/ 20895/2021, (1921) WP/3512/2021, (1922) WP/3668/2021, (1923) WP/3591/2021, (1924) WP/3700/2021, (1925) WP/3634/ 2021, (1926) WP(L.)/21166/2021, (1927) WP(L.)/21173/2021, (1928) WP/3601/2021, (1929) WP/3573/2021, (1930) WP/3597/ 2021, (1931) WP/927/2022, (1932) WP/925/2022, (1933) WP/917/2022, (1934) WP/919/2022, (1935) WP/906/2022, (1936) WP/916/2022, (1937) WP/3669/2021, (1938) WP/3604/ 2021, (1939) WP/3582/2021, (1940) WP(L.)/27804/2021, (1941) WP(L.)/27815/2021, (1942) WP(L.)/27871/2021, (1943) WP(L.)/27948/2021, (1944) WP/246/2022, (1945) WP/617/ 2022, (1946) WP(L.)/28806/2021, (1947) WP(L.)/28838/2021, (1948) WP(L.)/28905/2021, (1949) WP(L.)/28908/2021, (1950) WP(L.)/28914/2021, (1951) WP(L.)/28917/2021, (1952) WP(L.)/ 29017/2021, (1953) WP/1030/2022, (1954) WP/1038/2022, (1955) WP/288/2022, (1956) WP/522/2022, (1957) WP/529/ 2022, (1958) WP/467/2022, (1959) WP(L.)/29939/2021, (1960) WP(L.)/30181/2021, (1961) WP/469/2022, (1962) WP/359/ 2022, (1963) WP/15/2022, (1964) WP/40/2022, (1965) WP/41/ 2022, (1966) WP/47/2022, (1967) WP/52/2022, (1968) WP/ 57/2022, (1969) WP/58/2022, (1970) WP/60/2022, (1971) WP(L.)/69/2022, (1972) WP/72/2022, (1973) WP/80/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) WP(L.)/2581/2022, (2084) WP(L.)/2586/2022, (2085) WP(L.)/3042/2022, (2086) WP(L.)/3048/2022, (2087) WP(L.)/3051/2022, (2088) WP(L.)/ 3052/2022, (2089) WP(L.)/3056/2022, (2090) WP(L.)/3074/ 2022, (2091) WP(L.)/3093/2022, (2092) WP(L.)/3147/2022, (2093) WP(L.)/3148/2022, (2094) WP(L.)/3150/2022, (2095) WP(L.)/3153/2022, (2096) WP(L.)/3157/2022, (2097) WP(L.)/ 3163/2022, (2098) WP(L.)/3170/2022, (2099) WP(L.)/3175/ 2022, (2100) WP(L.)/3180/2022, (2101) WP(L.)/3181/2022, (2102) WP(L.)/3183/2022, (2103) WP(L.)/3186/2022, (2104) WP(L.)/3213/2022, (2105) WP(L.)/3214/2022, (2106) WP(L.)/ 3217/2022, (2107) WP(L.)/3241/2022, (2108) WP(L.)/3319/ 2022, (2109) WP(L.)/3330/2022, (2110) WP(L.)/3331/2022, (2111) WP(L.)/3332/2022, (2112) WP(L.)/3356/2022, (2113) WP(L.)/3364/2022, (2114) WP(L.)/3368/2022, (2115) WP(L.)/ 3405/2022, (2116) WP(L.)/3417/2022, (2117) WP(L.)/3435/ 2022, (2118) WP(L.)/3940/2022. WRIT PETITION NO. 2899 OF 2021 WITH WP/3750/2021 WITH WP/3751/2021 WITH WP/3479/2021 WITH WP/3480/2021 WITH WP/3481/2021 WITH WP/3482/ 2021 WP/3483/2021 WITH WP/3859/2021 WITH WP/3745/ 2021 WITH WP/3633/2021 WITH WP/3706/2021 WITH WP/ 3601/2021 WITH WP/3857/2021 WITH WP/3747/2021 WITH WP/37 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, (533) WP(L.)/3958/2022, (534) WP(L.)/3960/2022, (535) WP(L.)/ 4033/2022, (536) WP(L.)/4043/2022, (537) WP/1108/2022, (538) WP(L.)/4051/2022, (539) WP(L.)/4064/2022, (540) WP (L.)/4065/2022, (541) WP(L.)/4070/2022, (542) WP(L.)/4071/ 2022, (543) WP(L.)/4075/2022, (544) WP(L.)/4079/2022, (545) WP(L.)/4102/2022, (546) WP(L.)/4157/2022, (547) WP(L.)/ 4252/2022, (548) WP(L.)/4256/2022, (549) WP(L.)/4257/2022, (550) WP(L.)/4262/2022, (551) WP(L.)/4335/2022, (552) WP (L.)/4342/2022, (553) WP(L.)/4343/2022, (554) WP(L.)/4344/ 2022, (555) WP(L.)/4475/2022, (556) WP(L.)/4477/2022, (557) WP(L.)/4554/2022, (558) WP(L.)/4568/2022, (559) WP(L.)/ 4607/2022, (560) WP(L.)/4639/2022, (561) WP(L.)/4696/2022, (562) WP(L.)/4698/2022, (563) WP(L.)/4829/2022, (564) WP (L.)/4843/2022, (565) WP(L.)/4876/2022, (566) WP(L.)/4900/ 2022, (567) WP(L.)/4917/2022, (568) WP(L.)/4942/2022, (569) WP(L.)/4946/2022, (570) WP(L.)/4949/2022, (571) WP(L.)/ 4957/2022, (572) WP(L.)/4958/2022, (573) WP(L.)/4962/2022, (574) WP(L.)/4970/2022, (575) WP(L.)/4971/2022, (576) WP (L.)/4973/2022, (577) WP(L.)/4980/2022, (578) WP(L.)/5042/ 2022, (579) WP(L.)/5063/2022, (580) WP(L.)/5064/2022, (581) WP(L.)/5067/2022, (582) WP(L.)/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ramnathan, Mr. Arun Jain, Mr. Pankaj Toprani, Mr. Krupa Toprani, Mr. Madhur Agrawal, Mr. Suyash Gadre, Ms. Priyanka Bora, Ms. Apoorva Karmarkar, Ms. Rucha Surve, Ms. Fereshtre Sethna, Adv. Mrunal Parekh, Mr. Abhishek Tilak, Mr. Ameya Pant, Mr. Sumit Raghani, Mr. Faran Khan, Mr. Suraj Iyer, Ms. Gauri Joshi, Mr. Sankalp Sharma, Mr. Yahya Goghari, Mr. Mustafa Shabbir Shamim, Mr. Ved Jain, Mr. Sujit Lahoti, Mr. Pradeep Rajagopal, Ms. Drishti Shah, Ms. Rekha Rajagopal, Mr. Chirag Bhavsar, Mr. Suddhasattwa Roy, Mr. Yash Ghelani, Mr. Ayush P. Tiwari, Mr. Madhur Rai, Mr. Rajeev Panday, Mr. Ashish Kanojia, Mr. Rajesh Gupta, Mr. Rohan Deshpande, Ms. Farzeen Khambatta, Mr. Shreyas Shrivastava, Ms. Dishya Pandey, Mr. Vinod Santosh Kumar, Mr. Shanay Shah, Ms. Alefiyah S., Ms. Shreya Mohapatra, Mr. Karan Jain, Mr. Dhrumil Shah, Mr. Gopal Mundhra, Mr. Parth Parikh, Mr. Rahul Hakani, Dr. N. Shastri, Mr. Rajan Pillai, Ms. Priyanka Jain, Mr. Asadali Mazgaonwala, Mr. Kartikeya Desai, Ms. Sayli Shinde, Ms. Shobha H. Jagtiani, Mr. Gautam Thacker, Ms. Sneha Agicha, Ms. Anjali Jhawar, Mr. Zubin Behramkamdin, Mr. Yatin Malvankar, Mr. Dharan V. Gandhi, Mr. Durgaprasad Poojari, Mr. Jeet Gandhi, Mr. Shivam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Yuktam Legal, Ms. Farzeen Khambatta, Mr. Dinesh Kumar Jain, Keystone Partners, Mr. Mohit Bhansali, D S Legal, Economic Laws Practice, Lex India Juris, Vaish Associates, Kartikeya Associates, D M Harish Co., Ms. Kaizeen Mistry, Mr. Kapil Hirani, Lloyd and Johnson, Vaish Associates, Law Experts and India Law Alliance for Petitioners-Assessees in respective matters. Mr. Anil C. Singh, Additional Solicitor General a/w. Ms. Shehnaz V. Bharucha, Mr. Suresh Kumar, Mr. Sham V. Walve, Mr. Akhileshwar Sharma, Mr. Ashok Kotangle, Mr. Arvind Pinto (Senior Standing Counsel) a/w. Mr. Aditya Thakkar, Mr. Ankit Lohia, Mr. Varun Nathani, Mr. Dinesh Kukreja, Ms. Smita Thakur, Mr. Chaitanya Chavan, Mr. D.P. Singh, Ms. Mohinee Chougule, Ms. Krunali Satra and Mr. Arjun Gupta (Advocates) a/w. Mr. P.A. Narayanan, Ms. Mamta Omle, Ms. Swapna Gokhale, Mr. Pranil Sonawane, Mr. Vikas Khanchandani, Ms. P.S. Cardozo, Mr. Avadhesh Saxena and Mr. Vipul Bajapeyee (Junior Standing Counsel) for Respondents-Revenue in respective matters. JUDGMENT (PER K.R. SHRIRAM, J.) : WRIT PETITION NO.1334 OF 2021 1. This writ petition, along with other writ petitions listed today, have been filed by v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B. Civil Writ Petition No.969 of 2022 pronounced on 27.01.2022 and Anr. and High Court of Madras (Division Bench) in Vellore Institute of Technology V/s. Central Board of Direct Taxes and Anr. Writ Petition No.15019 of 2021 dated 04.02.2022. 6. The provisions for reassessment to reopen the assessment under certain circumstances was amended by the Finance Act, 2021 with effect from 1st April 2021. Prior thereto, under Section 147 of the Act, the Assessing Officer, if he had reason to believe that any income chargeable to tax had escaped assessment for any assessment year, he could, subject to the provisions of Sections 148 to 153 of the Act, assess or reassess such income and also any other income chargeable to tax which had escaped assessment. As per Section 148 of the Act, before making such assessment or reassessment under Section 147 of the Act, the Assessing Officer had to serve a notice on the assessee requiring him to furnish the return of his income. Sub-section (2) of Section 148 provided that the Assessing Officer shall, before issuing any notice, record his reasons for doing so. 7. As per sub-section (1) of Section 149 read with Section 147 of the Act, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment or recomputation under Section 147 of the Act and subject to the provisions of Section 148A of the Act, the Assessing Officer has to serve on the assessee a notice along with a copy of the order passed if required under clause - (d) of Section 148A of the Act requiring him to furnish the return within the specified time and in prescribed form. The proviso to Section 148 of the Act provides that no notice shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority for issuing such notice. What information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means has been provided in Explanation (1) to Section 148 of the Act. Situations where the Assessing Officer shall be deemed to have information which suggests that the income chargeable to tax has escaped assessment is listed in Explanation (2) to Section 148 of the Act. 11. Section 148A is newly inserted and it pertains to conducting enquiry, providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee. Explanation .-For the purposes of this section, specified authority means the specified authority referred to in section 151. 12. As per this newly introduced provision, before issuing notice under Section 148 of the Act, the Assessing Officer may conduct any enquiry if required with the prior approval of the specified authority with respect to the information which suggests that the income chargeable to tax has escaped assessment. The Assessing Officer has to provide an opportunity of being heard to the assessee by serving on him a notice to show cause within the specified time which shall not be less than seven days but not exceeding 30 days from the date of issue of notice but which can be extended by him on an application by the assessee. Such notice would be to call upon the assessee why a notice under Section 148 of the Act should not be issued on the basis of informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021: Provided also that for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded: Provided also that where immediately after the exclusion of the period referred to in the immediately preceding proviso, the period of limitation available to the Assessing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation under this subsection shall be deemed to be extended accordingly. Explanation .-For the purposes of clause (b) of this subsection, asset shall include immovable property, being land or building or both, shares and securities, loans and advances, deposits in bank account. (2) The provisions of sub-section (1) as to the issue of notice shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 148 of the Act applicable would be ten years from the end of relevant assessment year. The Assessing Officer has reason to believe, as previously referred to Section 147 of the Act, has been done away with and the proviso to Section 148 of the Act, as it stands now, provides no notice for the reassessment would be issued unless there is information with the Assessing Officer which suggests that income chargeable to tax has escaped assessment. 18. The major change under the new regime of reassessment is introduction of Section 148A of the Act. This section in a way codifies the procedure prescribed in the well known case of the Supreme Court in GKN Driveshafts (India) Ltd. V/s. Income Tax Officer (2003) 259 ITR 19 (SC). Clause - (a) of Section 148A of the Act permits the Assessing Officer to conduct enquiry, if required, with the prior approval of the specified authority with respect to the information which suggests that income chargeable to tax has escaped assessment. Clause - (b) of Section 148A of the Act requires the Assessing Officer to provide an opportunity of being heard to the assessee by issuing notice calling upon him why notice under Section 148 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Acts, which fell during the period from 20th March 2020 to 31st December 2020 or such other date after 31st December 2020 as the Central Government may notify, were extended to 31st March 2021 or such other date after 31st March 2021 as the Central Government may by notification specify. Notwithstanding anything contained in the Specified Act, such extension would operate. 20. In exercise of powers under sub-section (1) of Section 3 of the Relaxation Act, the Government of India through the Central Board of Direct Taxes issued a Notification No.20 of 2021 dated 31st March 2021 and extended, besides others, time limit for issuance of notice under Section 148 of the Act. The said notification reads as under: Notification No.20 of 2021 dated 31st March 2021 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 31st March, 2021 S.O. 1432(E).- In exercise of the powers conferred by subsection (1) of section 3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020) (hereinafter referred to as the said Act), and in partial modification of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r notified under, the Finance Act falls for the completion of such action; and (ii) the 30th day of April, 2021 shall be the end date to which the time-limit for the completion of such action shall stand extended. [Notification No. 20/2021/F. No. 370142/35/2020-TPL] SHEFALI SINGH, Under Secy., Tax Policy and Legislation Division Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide S.O. No. 4805 dated 31st December, 2020. (emphasis supplied) 21. This was followed by another Notification No.38 of 2021 dated 27th April 2021 and later a Notification No.74 of 2021 dated 25th June 2021. Notification Nos.20 of 2021 and 38 of 2021 are the impugned notifications. Notification No.38 of 2021 and 74 of 2021 read as under : Notification No.38/2021 dated 27th April 2021 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 27th April, 2021 S.O. 1703(E).- In exercise of the powers conferred by sub-section (1) of section 3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Chapter VIII of the Finance Act, 2016 (28 of 2016) (hereinafter referred to as the Finance Act) and the completion of any action, referred to in clause (a) of sub-section (1) of section 3 of the said Act, relates to sending an intimation under subsection (1) of section 168 of the Finance Act, and the time limit for completion of such action expires on the 30th day of April, 2021 due to its extension by the said notifications, such time limit shall further stand extended to the 30th day of June, 2021. [Notification No. 38 /2021/ F. No. 370142/35/2020-TPL] RAJESH KUMAR BHOOT, Jt. Secy. Tax Policy Legislation Division Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (ii) vide S.O. No. 4805 dated 31st December, 2020. (emphasis supplied) Notification No.74/2021 dated 25th June 2021 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 25th June, 2021 S.O. 2580(E).- In exercise of the powers conferred by sub-section (1) of section 3 of the Taxation and Other Laws (Relaxation and Amendment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, the time-limit for such the compliance of such action shall stand extended to the 30th day of September, 2021; (B) where the specified Act is the Chapter VIII of the Finance Act, 2016 (28 of 2016) (hereinafter referred to as the Finance Act) and the completion of any action, referred to in clause (a) of sub-section (1) of section 3 of the said Act, relates to sending an intimation under subsection (1) of section 168 of the Finance Act, and the time limit for completion of such action expires on the 30th June, 2021 due to its extension by the said notifications, such time limit shall further stand extended to the 30th day of September, 2021. [Notification No. 74/2021/ F. No. 370142/35/2020-TPL] SHEFALI SINGH, Under Secy., Tax Policy and Legislation Division Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (ii) vide S.O.No. 4805(E) dated 31st December, 2020 and was last amended vide S.O.1703(E) dated 27th April,2021. (emphasis supplied) 22. Under Notification No.20 of 2021, the time limit was extended to 30th April 2021. Under Notification No.38 of 2021, the time limit f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce for reopening of assessment was issued for any period prior to 1st April 2021, the provisions as they stood at the relevant time would apply. In such a case, there was no requirement of following the procedure laid down under Section 148A of the Act before issuing notice under Section 148 of the Act; (b) present situation is unprecedented and has arisen on account of pandemic caused by COVID-19. Unprecedented situation required extraordinary measures. The Relaxation Ordinance, 2020 and Relaxation Act were, therefore, framed giving extension of time limits for taking actions and making compliances. These extensions were for the benefit of both, actions that had to be taken by the Revenue as well as compliances which had to be made by the assessees. The assessees cannot take advantage of the unusual circumstances prevailing on account of COVID-19. The CBDT, therefore, in exercise of powers conferred in subsection (1) of Section 3 of the Relaxation Act, has issued necessary explanation which merely clarifies which statutory provisions any way provide. This explanation makes explicit what is otherwise implicit under the Act. The same is well within the power of the Government. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both of any express provision in itself or to delegate the function to save applicability of the provisions of sections 147, 148, 149 or 151 of the Act, as they existed up to 31.03.2021. Plainly, the Enabling Act is an enactment to extend timelines only. Consequently, it flows from the above 01.04.2021 onwards, all references to issuance of notice contained in the Enabling Act must be read as reference to the substituted provisions only. Equally there is no difficulty in applying the pre- existing provisions to pending proceedings. Looked in that manner, the laws are harmonized. 67. It may also be not forgotten, a reassessment proceeding is not just another proceeding emanating from a simple show cause notice. Both, under the pre- existing law as also under the law enforced from 01.04.2021, that proceeding must arise only upon jurisdiction being validly assumed by the assessing authority. Till such time jurisdiction is validly assumed by assessing authority evidenced by issuance of the jurisdictional notice under Section 148, no re-assessment proceeding may ever be said to be pending before the assessing authority. The admission of the revenue authorities that all re-ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecific delegation made, to allow the delegate of the Parliament, to indefinitely extend such limitation, would be to allow the validity of an enacted law i.e. the Finance Act, 2021 to be defeated by a purely colourable exercise of power, by the delegate of the Parliament. 71. Here, it may also be clarified, Section 3(1) of the Enabling Act does not itself speak of reassessment proceeding or of Section 147 or Section 148 of the Act as it existed prior to 01.04.2021. It only provides a general relaxation of limitation granted on account of general hardship existing upon the spread of pandemic COVID -19. After enforcement of the Finance Act, 2021, it applies to the substituted provisions and not the pre-existing provisions. 72. Reference to reassessment proceedings with respect to pre-existing and now substituted provisions of Sections 147 and 148 of the Act has been introduced only by the later Notifications issued under the Act. Therefore, the validity of those provisions is also required to be examined. We have concluded as above, that the provisions of Sections 147, 148, 148A, 149, 150 and 151 substituted the old/pre-existing provisions of the Act w.e.f. 01.04.2021. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the notice under Section 148 has to be applied. [See: Foramer Vs. CIT (2001) 247 ITR 436 (All.), affirmed by the Supreme Court in (2003) 264 ITR 566 (SC), Varkey Jacob Co. Vs. CIT and Anr. (2002) 257 ITR 231 (Ker), Smt. N. Illamathy vs. ITO (2020) 275 taxman 25/195 CTR 543 (Mad)(HC), RK Upadhyay v Shanabhai, (1987) 166 ITR 163 (SC); CIT v Rameshwar Prasad, (1991) 188 ITR 291 (All HC); Dr. Onkar Dutt Sharma v CIT, (1967) 65ITR 359 (All HC)]. 44. This Court is of the view that had the intention of the Legislature been to keep the erstwhile provisions alive, it would have introduced the new provisions with effect from 1st July, 2021, which has not been done. Accordingly, the notices relating to any assessment year issued under Section 148 on or after 1st April, 2021 have to comply with the provisions of Sections 147, 148, 148A, 149 and 151 of the Income Tax Act, 1961 as specifically substituted by the Finance Act, 2021 with effect from 1st April, 2021. 45. Consequently, this Court is of the opinion that as the Legislature has permitted re-assessment to be made in this manner only, it can be done in this manner, or not at all. SECTION 3(1) OF RELAXATION ACT EMPOWERS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons issued thereunder can only change the time-lines applicable to the issuance of a Section 148 notice, but they cannot change the statutory provisions applicable thereto which are required to be strictly complied with. Further, just as the Executive cannot legislate, it cannot impede the implementation of law made by the Legislature. 28. The Rajasthan High Court in the case of Sudesh Taneja (Supra) in paragraphs 31 to 37, 39 and 40 has held as under : 31. We may now attempt to answer these questions ourselves with the aid of statutory provisions and law laid down in various decisions cited before us we may summarise certain principles applicable in the field of taxation and which principles would be invoked in the course of the judgment :- (i) A taxing statute must be interpreted strictly. Equity has no place in taxation nor while interpreting taxing statute intendment would have any place. In case of State of W.B. Vs. Kesoram Industries Ltd. And Ors., (2004) 10 SCC 201, referring to Article 265 of the Constitution which provides that no tax shall be levied or collected except by authority of law, it was observed that in interpreting a taxing statute, equ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing. Insofar as taxation statutes are concerned, Article 265 of the Constitution prohibits the State from extracting tax from the citizens without authority of law. It is axiomatic that taxation statute has to be interpreted strictly because the State cannot at their whims and fancies burden the citizens without authority of law. In other words, when the competent Legislature mandates taxing certain persons/certain objects in certain circumstances, it cannot be expanded/interpreted to include those, which were not intended by the legislature. (ii) Being the central legislation of pan-India effect and operating in the field of taxation, the view of another High Court would have considerable persuasive value. In other words, the High Court would have due regard to the view already expressed by another High Court and to the possible extent prefer consistency of views across the country over discord. Unless the view expressed by another High Court is plainly unacceptable to the Court, the High Court would lean in favour of the well considered view already expressed by another Court. (iii) The speech made the Finance Minister on the floor of the House explaining the budgetary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Bill can certainly be referred to for the purpose of ascertaining the mischief sought to be remedied by the legislation and the object and purpose for which the legislation is enacted. This is in accord with the recent trend in juristic thought not only in Western countries but also in India that interpretation of a statute being an exercise in the ascertainment of meaning, everything which is logically relevant should be admissible. In fact there are at least three decisions of this Court, one in Sole Trustee Loka Shikshana Trust v. CIT: [1975]101 ITR 234, the other in Indian Chamber of Commerce v. CIT: [1975]101 ITR 796 and the third in Additional CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1/[1980] 2 Taxman 501, where the speech made by the Finance Minister while introducing the exclusionary clause in Section 2 Clause (15) of the Act was relied upon by the Court for the purpose of ascertaining what was the reason for introducing that clause. The speech made by the Finance Minister while moving the amendment introducing Sub-section (2) clearly states what were the circumstances in which Sub-section (2) came to be passed, what was the mischief for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eview if statute so permits but not liable to be reopened by the same authority. Such powers are vested by the Legislature presumably in view of the highly complex nature of assessment proceedings involving a large number of assessees concerning multiple questions of claims, deductions and exemptions, which assessments have to be completed in a time frame. To protect the interests of the Revenue, therefore, such special provisions are made under section 147 of the Act. However, it must be appreciated that an assessment previously framed after scrutiny when reopened, results into considerable hardship to the assessee. The assessment gets reopened not only qua those grounds which are recorded in the reasons, but also with respect to the entire original assessment, of course at the hands of the Revenue. This obviously would lead to considerable hardship and uncertainty. It is precisely for this reason that even while recognizing such powers, in special requirements of the statute, certain safeguards are provided by the statute which are zealously guarded by the courts. Interpreting such statutory provisions courts upon courts have held that an assessment previously framed cannot be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court considered the effect of substitution of a statutory provision by new one. It was observed as under :- 15. The word substitute ordinarily would mean to put (one) in place of another ; or to replace . In Black's Law Dictionary, 5th Edition, at page 1281, the word substitute has been defined to mean to put in the place of another person or thing . or to exchange . In Collins English Dictionary, the word substitute has been defined to mean to serve or cause to serve in place of another person or thing ; to replace (an atom or group in a molecule) with (another atom or group) ; or a person or thing that serves in place of another, such as a player in a game who takes the place of an injured colleague . 25. In Zile Singh v. State of Haryana and Ors. wherein the effect of an amendment in the Haryana Municipal Act, 1973 by Act No. 15 of 1994 whereby the word after was substituted by the word upto fell for consideration; wherein Lahoti, C.J. speaking for a three Judge Bench held the said amendment to have a retrospective effect being declaratory in nature as thereby obvious absurdity occurring in the first amendment and bring the same in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enacting a law has a complete knowledge of the existing laws on the same subject matter, and therefore, when it does not provide a repealing provisions, the intention is clear not to repeal the existing legislation. ( See: Municipal Council, Palai v. T.J. Joseph, Northern India Caterers (Private) Ltd. and Anr. v. State of Punjab and Anr., Municipal Corporation of Delhi v. Shiv Shanker and Ratan Lal Adukia and Anr. v. Union of India. ) When the new Act contains a repealing section mentioning the Acts which it expressly repeals, the presumption (105 of 113) [CW969/2022] against implied repeal of other laws is further strengthened on the principle expressio unius (persone vel rei) est exclusio alterius. (The express intention of one person or thing is the exclusion of another), as illuminatingly stated in Garnett v. Bradley. The continuance of existing legislation, in the absence of an express provision of repeal by implication lies on the party asserting the same. The presumption is, however, rebutted and a repeal is inferred by necessary implication when the provisions of the later Act are so inconsistent with or repugnant to the provisions of the earlier Act and that the two cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Ullah v. Municipal Board. Bareilly, SCR at p. 539] 12. This means that as a result of repeal of a statute the statute as repealed ceases to exist with effect from the date of such repeal but the repeal does not affect the previous operation of the law which has been repealed during the period it was operative prior to the date of such repeal.......... 36. It can thus be seen that original provisions upon their substitution stood repealed for all purposes and had no existence after introduction of the substituting provisions. We may refer to Section 6 of the General Clauses Act, 1897 which provides inter- alia that where the State Act or Central Act or regulation repeals any enactment then unless a different intention appears repeal shall not revive anything not in force or existing at the time at which the repeal takes effect or affect the previous operation of any enactment so repealed or anything duly done or suffered thereunder. Under the circumstances after substitution unless there is any intention discernible in the scheme of statute either pre-existing or newly introduced, the substituted provisions would not survive. 37. In this context we have perused t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year beginning on or before 01.04.2021 if such notice could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of subsection (1) of Section 149 as they stood immediately before the commencement of the Finance Act, 2021. As per this proviso thus no notice under Section 148 would be issued for the past assessment years by resorting to the larger period of limitation prescribed in newly substituted clause (b) of Section 149(1). This would indicate that the notice that would be issued after 01.04.2021 would be in terms of the substituted Section 149(1) but without breaching the upper time limit provided in the original Section 149(1) which stood substituted. This aspect has also been highlighted in the memorandum explaining the proposed provisions in the Finance Bill. If according to the revenue for past period provisions of section 149 before amendment were applicable, this first proviso to section 149(1) was wholly unnecessary. Looked from both angles, namely, no indication of surviving the past provisions after the substitution and in fact an active indication to the contrary, inescapable conclusion that w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eported in 2017 9 SCC 1 is of legislation being manifestly arbitrary. A subordinate legislation can be challenged on all these grounds as well as on the grounds that it does not conform to the statute under which it is made or that it is inconsistent with the provisions of the Act or it is contrary to some of the statutes applicable on the subject matter. In case of J.K. Industries Ltd. and Ors. Vs. Union of India and Ors., reported in (2007) 13 SCC 673, it was observed as under :- 63. At the outset, we may state that on account of globalization and socio-economic problems (including income disparities in our economy) the power of Delegation has become a constituent element of legislative power as a whole. However, as held in the case of Indian Express Newspaper v. Union of India reported in (1985) 1 SCC 641 at page 689, subordinate legislation does not carry the same degree of immunity which is enjoyed by a statute passed by a competent Legislature. Subordinate legislation may be questioned on any of the grounds on which plenary legislation is questioned. In addition, it may also be questioned on the ground that it does not conform to the statute under which it is made. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in meaning of the statutory provision and its (112 of 113) [CW-969/2022] interpretation is clear, by adopting a position different in an explanation and describing it to be clarificatory, the subordinate legislature cannot be permitted to amend the provisions of the parent Act. Accordingly, these explanations are unconstitutional and declared as invalid. 29. At the outset, we had made it clear to Mr. Anil Singh, learned ASG that we were inclined to go along with the view expressed by the three Division Benches of Allahabad High Court, Rajasthan High Court and Delhi High Court. During the hearing our attention was invited to the judgment of the Division Bench of Madras High Court in Vellore Institute of Technology (Supra). We expressed that we were inclined to take a similar view as expressed by all the Division Benches and independently also we hold the same view. We also indicated to the learned ASG that we were unable to persuade ourselves to accept the analysis of the learned Single Judge of the Chhattisgarh High Court in Palak Khatuja (Supra). 30. We asked Mr. Anil Singh, learned ASG if he has anything more to argue apart from the submissions of Revenue already recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ASG tendered a synopsis of submissions spread in 39 paragraphs. Learned ASG stated that paragraphs 1 to 15 contained additional arguments of respondents other than those urged before and negated by the various High Courts and paragraphs 16 to 39 deal with issues already considered and dealt with by various High Courts and he reiterated and adopted the stand taken by the Revenue before those Courts. Revenue s additional arguments, as set out in the synopsis, are as under : A. The Notifications do not result in creating an overlap in statutory schemes and there is no question of the Executive seeking to apply provisions of law after they have been substituted/repealed by Parliament. Relaxation Act applies only to actions to be taken between 20th March 2020 and 31st March 2021, a date before the Finance Act, 2021 came into force. Thus, Relaxation Act and the Notifications would apply only in respect of matters where the time fell due for any act prior to Finance Act, 2021 coming into force, i.e., prior to 31st March 2021. However, Relaxation Act permits the action to be taken in such cases within certain extended timelines owing to the pandemic. B. The use of the word suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act, 2021, after making all compliances, as required by law. 33. The submissions made by learned ASG, as additional arguments of respondents, as submitted by Mr. Mistri, with whom we agree, in effect are all restatement, made in different style, of the same argument urged before the Allahabad, Delhi, Rajasthan, Calcutta and Madras High Court. They had already argued/ contended that as the original time limit for issuing a notice under Section 148 of the Act was expiring on or before 31st March 2021 and such time limit has been extended by the Relaxation Act, the old/unamended provisions of Section 148 of the Act will continue to govern such notices. This submission of respondents ignores the legal position that the provisions of Sections 147 to 151 of the Act have been substituted with effect from 1st April 2021 by the Finance Act, 2021. Further a new Section 148A of the Act has been inserted with effect from 1st April 2021. Accordingly, the old/unamended provisions of Sections 148 to 151 cease to have legal effect after 31st March 2021 and the substituted provisions of Sections 148 to 151 have binding force from 1st April 2021. In the absence of a savings clause there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the provision as existing on such date will be applicable to notices issued relying on the provision of Relaxation Act. A plain reading of Relaxation Act, as Mr. Mistri rightly submitted, makes it clear that Section 3(1) of Relaxation Act merely extends the limitation provided in the specified Acts (including Income-tax Act) for doing certain Acts but such Acts must be performed in accordance with the provisions of the specified Acts. Therefore, if there is an amendment in the specified Act, the amended provision of the specified Act would apply to such actions of the Revenue. The Delhi High Court has considered and rejected the contention of the Revenue that the notice issued after 1st April 2021 relates back to an earlier period. 38. The Delhi High Court has considered and rejected this argument of the Revenue that Relaxation Act creates a legal fiction such that the notices issued under Section 148 of the Act are deemed to be issued on 31st March, 2021. The so-called legal fiction is directly contrary to the Revenue s own Circular No.549 of 1989, which is binding on them as well as the well settled principle that the validity of a notice is to be judged on the basis of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axation Act is not to postpone the applicability of amended provisions of a Specified Act. Though Relaxation Act was in existence when the Finance Act, 2021 was passed, the Parliament has specifically enacted the new, (amended) provisions of Section 147 to 151 of the Act and made them applicable with effect form 1st April, 2021. Therefore, it is clear that amendment is to be applied from 1st April, 2021. Further, when there is no ambiguity on the applicability of the provision, there is no question of resorting to purpose test. 43. As regards liberty granted by the Allahabad High Court, certainly, if the law permits issuance of notices under Section 148 of the Act (as amended), afresh, then no liberty is required to be granted by the Court, and it would be within the Assessing Officer s powers to initiate proceedings as per the amended law. The Madras High Court has considered this very plea and granted liberty to initiate reassessment proceedings in accordance with the provisions of the amended Act, if limitation for it survives . 44. As submitted by Mr. Mistri, with whom we agree, Chapter II of Relaxation Act provide for Relaxation of Certain Provisions of Specified Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Act which amended the Act and no such amendments to the substantive provisions of the Act were envisaged under Section 3 of Relaxation Act, which was only a relaxation provision dealing with time limits under various enactments. 47. As noted earlier, it is Revenue s case that Section 3 of Relaxation Act enabled the Central Government to issue notifications which would permit the Assessing Officers to issue notices under Section 148 of the Act after 1st April, 2021 in terms of the erstwhile provisions of Sections 147 to section 151, even though the said provisions were repealed with effect from 1st April, 2021 by the Finance Act, 2021. It is, however, pertinent to note that Section 3 of Relaxation Act falls in Chapter II of the said Act, which is titled Relaxation of Certain Provisions of Specified Act . In contradistinction, Section 4 of Relaxation Act which does amend several provisions of the Act falls in Chapter III, which is titled Amendments to the Income Tax Act, 1961 . It will be apposite to notice that the amendments provided for in Section 4 were made by the Legislature itself in terms of the said Section and no such power to amend the Act was delegated to the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 148A. Thus, even if Explanation are valid, procedure of Section 148A is not followed and hence, notices are invalid. (c) In any case, Relaxation Act is not applicable for Assessment Years 2015-2016 or any subsequent year and, hence, the question of applicability of the Notification Nos.20 and 38 of 2021 does not arise. The time limit to issue notice under Section 148 of the Act for the Assessment Years 2015-2016 onwards was not expiring within the period for which Section 3(1) of Relaxation Act was applicable and, hence, Relaxation Act could never apply for these assessment years. As a consequence, there can be no question of extending the period of limitation for such assessment years. 50. To sum up, since we are in respectful agreement with the reasons recorded and views taken by the Allahabad High Court, Rajasthan High Court, Delhi High Court and Madras High Court, in the cases referred hereinabove, and for reasons noted above, all these writ petitions listed above are disposed by allowing the same. The explanations to the Notification No.20 of 2021 dated 31st March 2021 and Notification No.38 of 2021 dated 27th April 2021 are declared ultra vires and are, therefore, b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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