Calcutta High Court
Gold Coin Capital Market Pvt Ltd vs Union Of India And Ors on 5 April, 2022
OD - 38
ORDER SHEET
WPO/1870/2022
IN THE HIGH COURT AT CALCUTTA
CONSTITUTIONAL WRIT JURISDICTION
ORIGINAL SIDE
GOLD COIN CAPITAL MARKET PVT LTD.
VS
UNION OF INDIA AND ORS
BEFORE:
The Hon'ble JUSTICE MD. NIZAMUDDIN
Date : 5TH APRIL, 2022.
Appearance:
Mr. Prashant Agarwal, Adv.
..for the petitioner
Mr. Om Narayan Rai, Adv.
..for the Union of India
The Court : Let the supplementary affidavit filed by the petitioner be
kept with the records and on perusal of the same it appears that till date no
assessment order has been passed on the basis of the impugned notice
under Section 148 of the Income Tax Act, 1961.
Heard Learned Counsels appearing for the parties.
Petitioner is aggrieved by the issuance of impugned notice under
Section 148 of the Income Tax Act, 1961 on the ground that the same is
barred by limitation and the respondent Income Tax Authority concerned,
before issuing the impugned notices under Section 148 of the Income Tax
Act, have not observed the statutory formalities under Section 148 A of the
Income Tax Act as prescribed by the Finance Act, 2021 which are applicable
with effect from 1st April, 2021 before issuance of notices under Section 148
of the Act on or after 1st April, 2021.
Issues arising in the present Writ Petition is purely legal and in this
Writ Petition the assessee/petitioner has sought relief of quashing of the
impugned re-assessment notice issued post 31st March, 2021 by the
respondent Income Tax Authority concerned under Section 148 of the
Income Tax Act, assessee/petitioner has also sought relief by way of a
declaration declaring Explanations A(a)(ii)/A(b) to the Notification No. 20
[S.O. 1432 (E) dated 31st March, 2021 and Notification No. 38 [S.O.1703 (E)]
dated 27th April, 2021 to the extent that the same extend the applicability of
the "provisions of Section 148, Section 149 and Section 151 of the Act, as
the case may be, as they stood as on the 31st March, 2021, before the
commencement of the Finance Act, 2021" to the period beyond 31st March,
2021 as ultra vires the parent legislation, viz., The Taxation and Other Laws
(Relaxation and Amendment of Certain Provisions) Act, 2020 (hereinafter
referred to as ' Relaxation Act, 2020').
At the outset, both the counsel appearing for the parties jointly
submitted that the issues involved in this Writ Petition is covered by the
decision of the Division Bench of the Allahabad High Court dated 30th
September, 2021 in the case of 'Ashok Kumar Agarwal -vs- Union of India
through its Revenue Secretary North Block & Ors.' (Writ Tax No. 524/2021)
decided in favour of assessee/petitioner on 30.09.2021 and order of
Rajasthan High Court dated 25th November, 2021 in the case of Bpip Infra
Private Limited-vs.- Income Tax Officer, Ward 4 (1), Jaipur (S.B. Civil Writ
Petition No. 13297/2021) and the order of Delhi High Court 15th December,
2021 in the case of Man Mohan Kohli -vs- Assistant Commissioner of
Income Tax & Anr. In (W.P. (C) 6176 of 2021) and judgement and order of
this Court dated 17th January, 2022 in the case of Manoj Jain Vs. Union of
India & Ors. In WPA No. 11950 of 2021 and in the case of Bagaria Properties
and Investment Private Limited & Anr. In WPO 244 of 2021.
In view of judgment and order of this Court dated 17th January, 2022
in the case of Manoj Jain Vs. Union of India & Ors. In WPA No. 11950 of
2021 and in the case of Bagaria Properties and Investment Private Limited &
Anr. in WPO No. 244 of 2021, this Writ Petition being WPO No.1870/2022
is disposed of by allowing the same. Explanations A(a)(ii)/A(b) to the
Notifications dated 31st March, 2021 and 27th April, 2021 are declared to
be ultra vires the Relaxation Act, 2020 and are therefore bad in law and null
and void. Accordingly, impugned notice under Section 148 of the Income
Tax Act and all subsequent proceedings are quashed with liberty to the
Assessing Officers concerned to initiate fresh re-assessment proceedings in
accordance with the relevant provisions of the Act as amended by Finance
Act, 2021 and after making compliance of the formalities as required by the
law.
This writ petition is being entertained subject to payment of cost of Rs.
5000/- to the High Court Legal Services Committee since the impugned
notice under Section 148 of the Income Tax Act, 1961, has been issued on
20th April, 2021 as appears from record and this writ petition has been filed
in March, 2022, that is, almost after ten months from receipt of the
impugned notice, without any explanation for such delay in filing this writ
petition. Such cost has to be paid by the petitioner to the High Court Legal
Services Committee within seven days from date and such cost will be
utilised for the welfare of street children. Receipt of payment is to be
produced by the petitioner before this Court.
List this matter as "To be Mentioned" on 18th April, 2022 for
compliance.
Urgent certified photocopy of this order, if applied for, be supplied to
the parties upon compliance with all requisite formalities.
(MD. NIZAMUDDIN, J.)
Sbghosh
