Calcutta High Court (Appellete Side)
Balaji Advertising Limited vs Union Of India & Ors on 21 March, 2022
21.03.2022.
p.b.
Sl. No.25.
W.P.A. 4783 of 2022
Balaji Advertising Limited.
Vs.
Union of India & Ors.
Mr. Vivek Murarka,
Mr. D. N. Dey.
........for the petitioner.
Mr. Vipul Kundalia.
........for the Income Tax Authority.
Heard learned counsel 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 are barred by limitation and the
respondent Income Tax Authority concerned, before
issuing the impugned notice under Section 148 of the
Income Tax Act, have not observed the statutory
formalities under Section 148A of the Income Tax Act as
prescribed by the Finance Act, 2021 which are applicable
with effect from 1st April, 2021 before issuance of notice
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)] dated27th
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, all 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 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 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 WPA
No.4783 of 2022 is disposed of by allowing the same.
Explanations A(a)(ii)/A(b) to the Notification 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. 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 has been allowed subject to
payment of cost of Rs.5,000/- to the High Court Legal
Services Committee since the impugned notice under
Section 148 of the Income Tax Act, 1961, has been issued
on 8th April, 2021 as appears from record and this writ
petition has been filed on 16th March, 2022, that is,
almost after eight 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 payment of receipt is to be produced
before this Court.
List this matter as "To be Mentioned" on 1st April,
2022 for compliance.
Urgent photostat certified copy of this order, if
applied for, be supplied to the parties upon compliance
with all requisite formalities.
(Md. Nizamuddin, J.)
