9911796707
TMI Blog2022 (6) TMI 1431X X X X Extracts X X X X X X X X Extracts X X X X ..... Standing Counsel for Income Tax Department for the respondents as well as Mr. B.Mukherjee, learned counsel appearing on behalf of Mr. N.Rajeshwar Rao, learned Assistant Solicitor General of India for Union of India. 2. In all the writ petitions in this bunch, challenge has been made to the legality and validity of notices issued by the assessing officer under Section 148 of the Income Tax Act, 1961 (briefly referred to hereinafter as the 'Act'). All the notices are post 01.04.2021, but issued under the un-amended provision of Section 148 of the Act. 3. By the aforesaid notices, assessing officer proposed to assess/re-assess income of the petitioners for the respective assessment years on the ground that he has reasons to believe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Special Leave Petitions. On leave being granted, Civil Appeal No.3005/2022 (Union of India vs. Ashish Agarwal) along with other connected Civil Appeals were heard by the Supreme Court and decided vide the judgment and order dated 04.05.2022, which has since been reported in 2022 SCC Online SC 543. After analysing the provisions of the Act from Sections 147 to 151 of the Act, more particularly the provisions contained in Section 148A of the Act, Supreme Court observed as follows: "7. Thus, the new provisions substituted by the Finance Act, 2021 being remedial and benevolent in nature and substituted with a specific aim and object to protect the rights and interest of the assessee as well as and the same being in public interest, the respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide belief that the amendments may not yet have been enforced. Therefore, we are of the opinion that some leeway must be shown in that regard which the High Courts could have done so. Therefore, instead of quashing and setting aside the reassessment notices issued under the unamended provision of IT Act, the High Courts ought to have passed an order construing the notices issued under unamended Act/ unamended provision of the IT Act as those deemed to have been issued under section 148A of the IT Act as per the new provision section 148A and the Revenue ought to have been permitted to proceed further with the reassessment proceedings as per the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021, subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act, 2021 and in law and whatever rights are available to the Assessing Officer under the Finance Act, 2021 are kept open and/or shall continue to be available and; The present order shall substitute/modify respective judgments and orders passed by the respective High Courts quashing the similar notices issued under unamended section 148 of the IT Act irrespective of whether they have been assailed before this Court or not." 9. Finally, the Civil Appeals were allowed in part and judgments of the various High Courts have been modified and substituted as under: "10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cedure as required under section 148A may issue notice under section 148 (as substituted); All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available." 10. Supreme Court also clarified that its decision in Ashish Agarwal (supra) rendered on 04.05.2022 was an order passed under Article 142 of the Constitution of India and would be binding in all cases where similar notices have either been set aside by the High Courts or are pending adjudication before the High Courts. It has been held as follows: "11. The present order shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
