Dismissing the writ petition the Court held that ,where notices were issued under section 148 of the Act between April 01, 2021 to June 30, 2021 without adhering to section 148A of the Act which was introduced via Finance Act, 2021 effective from April 01, 2021, the issuance of Notice under section 148 of the Act between April 01, 2021 to June 30, 2021 under the Taxation and other Law (Relaxation and Amendment of Certain Provisions) Act, 2020 and subsequent Notifications extending the due date for issuance was held covered by the doctrine of Conditional Legislation.
Further observed that, the Taxation and other Law (Relaxation and Amendment of Certain Provisions) Act, 2020 and subsequent Notifications extended the due dates for payment of taxes for taxpayers and also protected the interest of the Income-tax Department at parity. Therefore, the provisions of Section 148 which was prevailing prior to the amendment of Finance Act, 2021 was also extended. Writ Petitions dismissed. ( WP(T) No. 149 of 2021 dated August 23, 2021 )
(WP .No 158 of 2021 dt. 1-9 -2021 ) ( AY. 2015 -16)
Honourable High Courts including Chhattisgarh have stayed the proceedings u/s 148 where the notices were issued after 31st March 2021. Perhaps this is the first judgement upholding the validity of notices issued after 31.03.2021. It has far-reaching implications on assessees. May be other High Courts also agree with the judgement or may disagree based on the arguments put forth before them.