Pursuant of the direction of the Supreme Court in UOI v. Ashish Agarwal (2022)SCConline SC 543 / 442 ITR 1 (SC), the notice under section 148(b) was issued on the petitioner on 2 nd June 2022, alleging that the petitioner was a beneficiary of accommodation entries provided by entities and has booked non -genuine bogus sales . The notice u/s 148 was issued on 31 st March , 2021 and served vis email on same day. On writ allowing the petition the Court held that Revenue having issued and served notice under section 148 of the unamended Act could not have issued another notice under section 148A(b) of the Act . Court also held that directions given by the Supreme Court in Ashish Agarwal were applicable to cases , where notices under section 148 had been issued during period 01 st April to 30 th June 2021 . Consequently show cause notice as well as order passed under section 148A(d) and notice issued under section 148 both are quashed . ( AY. 2017 18 )
Nagesh Trading Co v. ITO ( 2022) 219 DTR 156 (Delhi)( HC)
S. 148A: Reassessment – Conducting inquiry, providing opportunity before issue of notice – Accommodation entries -Notice was issued under section 148 of the Act (Unamended Act )- Directions given by the Supreme Court in Ashish Agarwal were applicable to cases , where notices under section 148 had been issued during period 01 st April to 30 th June 2021 – Notice issued under section 148A(b) is held to be bad in law [S. 148A(b), 148A(d), Art , 226 ]