Section 148 Notice and Section 148A(d) Order Are Reversed by Gujarat HC
Fact and issue of the case
The petitioner seeks to challenge the notice issued under Section-148 of the Income Tax Act, 1961 dated 30.06.2021. In view of judgment in case of Union of India Vs. Ashish Agarwal (2022) 138 Taxmann. Com, the respondent issued a notice under Section-148A(b) for the A.Y.2013-14 on 27.05.2022, which have been replied to eventually and the respondent passed an order under Section-148A(d) on 18.08.2022. A notice under Section-148 as per Finance Act, 2021 came to be passed on the very day.
The challenge is made by way of following prayers:-
7III(A) Issue a writ of certiorari and/or a writ of mandamus and/or any other writ direction or order to quash and set aside the impugned notice dated 18.08.2022 under section 148 of the Income-tax Act, 1961 annexed hereto at Annexure-E alongwith order under Section 148A(d) dated 18.08.2022 annexed hereto at Annexure-D and all further notices, if any, issued for completing reassessment including reassessment order, if any, framed during pendency of this petition;
(B) Pending admission, hearing and disposal of this petition, ad-interim relief be granted and the respondent be ordered to restrain from enforcing compliance of the impugned notice dated 18.08.2022 under section 148 of the Income-tax Act, 1961 annexed hereto at Annexure-E alongwith order under Section 148A(d) dated 18.08.2022 annexed hereto at Annexure-D and all further notices, if any, issued for completing reassessment including reassessment order, if any, framed during pendency of this petition;
(C) Award the costs of this petition;
(D) Grant such other and further reliefs as this Hon’ble Court deems fit.”
Observation of the court
Rule made returnable forthwith. Ms. Kalpana Raval, learned senior standing counsel assisted by Mr. Karan Sanghani, learned advocate waives service of notice of rule for and on behalf of respondent.
On hearing both the sides and also, in wake of decision of this Court in case of Keenara Industries Private Limited Vs. The Income Tax Officer, Surat and allied matters; Special Civil Application No.17321 of 2022; decided on 07.02.2023, where this Court on the issue of limitation has allowed the plea of petitioner and quashed the notices for the A.Y. 201314 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 impugned dated 18.08.2022 issued under Section-148 of the Act alongwith the order under Section-148A(d) of the self-same date.
Rule is made absolute to the aforesaid extent.
The tribunal has ruled in favour of the assessee and dismiss the appeal.
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