Honourable High Court deciding the issue of validity of notices issued under section 148 of the Income-tax Act, 1961 on or after April 01, 2021, held the Explanations A(a)(ii)/A(b) to the Notifications dated 31st March, 2021 and 27th April, 2021 which extended the period of issuance of Notices beyond March 31, 2021 are declared to be ultra vires the TOLA and are therefore the Notices issued under section 148 of the Act on or after April 01, 2021 are bad in law, and null and void. The revenue is permitted to take further steps as per law. Followed Ashok Kumar Agarwal & Ors. v. UOI (All.)(HC), Bpip Infra Pvt. Ltd. and Ors. vs. ACIT and Ors; and dissented from Palak Khatuja Vs Union of India & Ors. (WP(C) 6176 of 2021 15 -12 2021 )
Mon Mohan Kohli v. ACIT (2021] 133 taxmann.com 166 ( Delhi ) (HC)www.itatonline.org
S. 148: Reassessment – Notice-Constitutional validity – The delegation authorized being only for the purpose of enlarging limitation under a valid law, such delegation could not be exercised to resurrect the provision of law that stood omitted from the statute book by virtue of its substitution made by the Finance Act, 2021, w.e.f. 01.04.2021 – Reassessment notices issued under section 148 of the Act are quashed-It is left open to the assessing authority to initiate – re-assessment proceedings in accordance with the provisions of the Act, as amended by the Finance Act, 2021 after making due compliance as required under the law. [S. 147, 148A, 149, 151, 151A, 153, 292 Relaxation of Certain Provisions) Act, 2020 (TOLA), S. 3(1) of the Act 38 of 2020, Art. 226]
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[…] & Ors. v. UOI (All.)(HC), Bpip Infra Pvt. Ltd. and Ors. vs. ACIT and Ors (Raj (HC); and Mon Mohan Kohli v. ACIT (Delhi) (HC) and Bagaria Properties and Investments Pvt. Ltd. Vs. Union of India (WPO No.244/2021) decided on […]
THE ASSESSEE WERE ADVISED THAT COURTS WILL GIVE BLANKET PROTECTION,HOWEVER THE COURTS ARE ALLOWING TO RECOURSE TO SECTION 148A.
ITS DOUBLE WHAMMY.NOW THE MATTER MAY GO AGAIN TO COURTS OF BELOW 50 LAKHS AND ABOVE 50 LAKHS THINGS.THE ABOVE 50 LAKHS ARE REALISING THAT ALL THE THINGS ARE TEMPORARY REPRIEVE.THE PROTECTION OF UNTENABLE RECORDED REASONS,INVALID NOTICE,FAILURE TO MENTION FAILURE TO DISCLOSE TRUE AND FAIR RECORDED REASON , MECHANICAL OK BY PCIT, AND SO ON ON…..WHICH WERE HALLMARK OF 148 THINGS HAVE ENDED.
THE AO,CIT (A),ITAT HAND ARE TIED AS THE COURTS ARE DIRECTING RECOURSE TO 148A,SO NOW RELIEF AFTER MATTER TRAVELS TO COURTS AGAIN IN SECOND INNINGS.
THE EUPHORIA HAS COME DOWN.
SC IS ALSO LIKELY TO ALLOW 148A TO LITIGANTS AND THAN AFTER SECOND ININGS THE RELIEF ONLY AFTER MATTER TRAVELLED TO SC.
THE ASSESSEE WOULD HAVE FACED 148 THINGS AND WOULD HAVE WON HANDSDOWN AS IS THE CASE WITH EARLIER MATTERS.