Matadin Rungta Huf vs Union Of India & Ors
2022 Latest Caselaw 2606 Cal

06.05.2022.
   p.b.
 Sl. No.27.

                           W.P.A. 7993 of 2022


                    Matadin Rungta HUF
                            Vs.
                    Union of India & Ors.


              Mr. Brijesh Kumar Singh.
                               ........for the petitioner.
              Mr. Soumen Bhattacharya.
                               .........for the respondent.

Heard learned advocates appearing for the parties.

In this writ petition, petitioner has challenged the

impugned notice under Section 148 of the Income Tax Act,

1961 (Old Act) which was issued after 31st March, 2021 by

contending that the present case should be governed by

the newly amended provisions relating to proceeding under

Section 147 of the Income Tax Act, 1961 and the

formalities of which has not been observed and complied

with and, as such, the same is bad in law. Taking note of

the recent judgment of the Hon'ble Supreme Court dated

May 4, 2022 in the case of Union of India & Ors. Vs.

Ashish Agarwal in Civil Appeal No.3005 of 2022 and in

view of the guidelines and law laid down in the aforesaid

judgment of the Hon'ble Supreme Court and particularly

taking note of paragraphs 10, 11 and 12 of the aforesaid

judgment which are quoted hereinbelow, I am not inclined

to entertain this writ petition:-

"10. In view of the above and for the reason stated

above, the present appeals are ALLOWED IN PART. The

impugned common judgments and orders passed by the

High Court of judicature at Allahabad in W.T.

No.524/2021 and other allied tax appeals/petitioners,

is/are hereby modified and substituted as under:-

(i) The impugned section 148 notices issued to the

respective assesses which were issued under unamended

section 148 of the IT Act, which were the subject matter of

writ petitions before the various respective High Courts

shall be deemed to have been issued under section 148A of

the IT Act as substituted by the Finance Act, 2021 and

construed or treated to be show-cause notices in terms of

section 148A(b). The assessing officer shall, within thirty

days from today provide to the respective assesses

information and material relied upon by the Revenue, so

that the assesses can reply to the show-cause notices

within two weeks thereafter;

(ii) The requirement of conducting any enquiry, if

required, with the prior approval of specified authority

under Section 148A(a) is hereby dispensed with as a one-

time measure vis-à-vis those notices which have been

issued under Section 148 of the unamended Act from

01.04.2021 till date, including those which have been

quashed by the High Courts.

Even otherwise as observed hereinabove holding any

enquiry with the prior approval of specified authority is not

mandatory but it is for the concerned Assessing Officers to

hold any enquiry, if required.

(iii) The assessing officers shall thereafter pass

orders in terms of Section 148A(d) in respect of each of the

concerned assessees; Thereafter after following the

procedure as required under Section 148A may issue

under Section 148 (as substituted);

(iv) All defences which may be available to the

assessees including those available under Section 149of

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.

11. The present order shall be applicable PAN INDIA

and all judgments and orders passed by different High

Courts on the issue and under which similar notices

which were issued after 01.04.2021 issued under Section

148 of the Act are set aside and shall be governed by the

present order and shall stand modified to the aforesaid

extent. The present order is passed in exercise of powers

under Article 142 of the Constitution of India so as to

avoid any further appeals by the Revenue on the very issue

by challenging similar judgments and orders, with a view

not to burden this Court with approximately 9000 appeals.

We also observe that present order shall also govern the

pending writ petitions, pending before various High Courts

in which similar notices under Section 148 of the Act

issued after 01.04.2021 are under challenge.

12. The impugned common judgments and orders

passed by the High Court of Allahabad and the similar

judgments and orders passed by various High Court, more

particularly, the respective judgments and orders passed

by the various High Courts particularly of which are

mentioned hereinabove, shall stand modified/substituted

to the aforesaid extent only."

Accordingly, this writ petition being WPA No.7993 of

2022 is dismissed and the Assessing Officer concerned will

proceed with the impugned re-assessment proceeding in

accordance with the guidelines and law laid down by the

Hon'ble Supreme Court in the aforesaid judgment.

(Md. Nizamuddin, J.)