Shahnaz Beg vs Central Board Of Direct Taxes
2023 Latest Caselaw 7713 MP

                                                              1
                                       IN THE HIGH COURT OF MADHYA PRADESH
                                                    AT JABALPUR
                                                       WP No. 6286 of 2023
                                        (SHAHNAZ BEG Vs CENTRAL BOARD OF DIRECT TAXES AND OTHERS)

                           Dated : 11-05-2023
                                 Shri Abhijeet Shrivastava - Advocate for petitioner.

                                 Shri Shubham Manchhani - Advocate for respondents.

Issue notice to the respondents on payment of process fee within seven working days, failing which this petition shall stand dismissed without further reference to the Court.

Challenge herein is to the order dated 26.07.2022 (Annexure-P/6) issued under Section 148A(d) of the Amended Income Tax Act, 1961 and the consequential notice dated 26.07.2022 (Annexure-P/7) issued under Section 148 of the Income Tax Act, 1961.

The issue involved herein has though been prima facie considered by this Court in W.P. No.6738/2023 and an interim order dated 27.04.2023 was passed staying the impugned order passed u/S 148-A(d) of the Income Tax Act (for brevity "the Act") and consequential notice u/S 148 of the Amended Income Tax Act but learned counsel for rival parties have brought to the notice

of this Court certain subsequent events which include judicial pronouncements of different High Courts which are as follows:

(i) Division Bench of Delhi High Court in judgment dated 31.08.2022 passed in W.P. (C) No.12541/2022 & CM APPLs.37959-37961/2022 (Salil Gulati vs. Assistant Commissioner of Income Tax and others ) held while considering similar controversy in the backdrop of the decision of the Apex Court in Union of India vs. Ashish Agarwal, 2022 SCC OnLine SC 543, that Signature Not Verified Signed by: SHIBA NARAYAN BISWAL Signing time: 5/13/2023 2:35:55 PM

provisions of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 ('TOLA' for brevity) is required to be taken into account while calculating the period of limitation u/S 149 of the Act to judge the legality and validity of a notice issued u/S 148 of the Amended Income Tax Act.

(ii) Division Bench of Gujarat High Court took the same view on 07.02.2023 in a bunch of petitions including Special Criminal Application No.5059/2021 (Keenara Industries (P) Ltd. vs. Income Tax Officer ), Division Bench of Allahabad High Court in judgment dated 22.02.2023 passed in bunch of petitions including Writ Tax No.1079/2022 (Rajeev Bansal and others vs. Union of India and others) and Division Bench of Orissa High Court in judgment dated 01.11.2022 passed in WP No.1608/2022 (Stalco Consultancy & Systems (P) Ltd. vs. Principal Commissioner of Income Tax and another) took a contrary view that the provisions of TOLA shall not be taken into account while calculating the period of limitation u/S 149 of the Amended Income Tax Act for adjudicating the validity of notice u/S 148.

(iii) The decision of Delhi High Court in the case of Salil Gulati (supra) was assailed by the assessee but the SLP has since been dismissed on 11.04.2023.

(iv) The Division Bench decision of Allahabad High Court in Rajeev Bansal (supra) was also assailed by the Revenue before the Apex Court in SLP (C) No.6706/2022 whereby the said decision in the case o f Rajeev Bansal (supra) has been stayed by order dated 13.04.2023.

(v) Learned counsel for the assessee has further informed that after considering all the aforesaid developments, the Coordinate Bench of this Court in WP No.5812/2023 on 01.05.2023 has restrained the Signature Not Verified Revenue in a similar matter from taking coercive Signed by: SHIBA NARAYAN BISWAL Signing time: 5/13/2023 2:35:55 PM

steps against the assess and the said petition is pending adjudication till date.

(vi) Learned counsel for the Revenue has further informed that attempts are being made to consolidate all the pending cases before various High Courts. Revenue is directed to produce the relevant documents in this regard.

(emphasis supplied)

2. In view of above, there is a nebulous situation which needs to be clarified by the Apex Court where the controversy in question is pending.

3. Since the assessees have already been protected earlier in similar cases which are pending adjudication, the impugned order dated 26.07.2022 (Annexure-P/6) issued under Section 148A(d) of the Amended Income Tax Act, 1961 and the consequential notice dated 26.07.2022 (Annexure-P/7) issued under Section 148 of the Act in respect of assessment year 2014-15 shall remain stayed till next date of hearing.

4. List along with W.P. No.6738/2023.

                              (SHEEL NAGU)                                                      (HIRDESH)
                                 JUDGE                                                            JUDGE

                           Biswal




Signature Not Verified
Signed by: SHIBA NARAYAN
BISWAL
Signing time: 5/13/2023
2:35:55 PM