Calcutta High Court
Bnd Merchants Pvt Ltd vs Union Of India And Ors on 24 March, 2022
OD - 7
ORDER SHEET
WPO/1538/2022
IN THE HIGH COURT AT CALCUTTA
CONSTITUTIONAL WRIT JURISDICTION
ORIGINAL SIDE
BND MERCHANTS PVT LTD
VS
UNION OF INDIA AND ORS.
BEFORE:
The Hon'ble JUSTICE MD. NIZAMUDDIN
Date : 24th March, 2022.
Appearance:
Ms. Swapna Das, Adv.
Mr. Siddharth Das, Adv.
...For the Petitioner
Mr. Vipul Kundalia, Adv.
...For the U.O.I.
The Court : 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.1538/2022 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 is 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 Calcutta High Court Bar Association Lawyers'
Benevolent Fund since the impugned notice under Section 148 of the
Income Tax Act, 1961, has been issued on 14th 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 Calcutta High Court
Bar Association Lawyers' Benevolent Fund within seven days from
date and payment of receipt is to be produced before this Court.
List this matter as "To be Mentioned" on 4th 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.)
TR/
