| Court: | Supreme Court |
| Head Notes: | Hon. Supreme Court Validates Section 148 Notices issued after 31st March 2021 1. All notices issued under pre amended section 148 will be deemed to be issued under newly introduced section 148A 2. Revenue Authorities to follow the new procedure 3. All defences available to both the revenue and the assessee(s) under amended section 149. |
| Law: | Income-Tax Act |
| Section(s): | Section 147-151 of the Income Tax Act,1961, Article 142 of the constitution |
| Counsel(s): | Shri C.A. Sundaram Shri S. Ganesh |
| Dowload Pdf File | Click here to download the file in pdf format |
| Uploaded By | CA Milind Wadhwani |
| Date of upload: | May 4, 2022 |
TENtaTIVE(:
Me,- going by own limited understanding of the legal principles the matter entails,- for one thought (rather have been thinking/ of firm conviction, rightly or otherwise, so far) that the court’s power is confined to give its opinion only to rule on the constitutional propriety (vires ), if so questioned, of any deeming provision in a legislative enactment ?!?
Premised so, the Judgment makes for a strikingly clean departure and seemingly runs counter to the well established principles of ‘justice’ !?!
OVER to>>>
The assessees were naive to challenge in thousands the notices.The court itself stated that before 1/4/21 the assessee had several ways to romp home.
However in over zeal they knocked the court to their discomfort.AND SOME GOT HC ORDER in less than two weeks.Even 154 are pending for 5/10 years.So all were emboldened like anything.
Now all matters above 50 lakhs notices has to face the route of department and no relief on technical grounds or WRITS till matter reach SC again.
The below 50 lakhs matter will face deptt googly but they can get relief in appeal forum.
COMING 15 DAYS LOTS OF SEMINAR/WEBINAR EXPECTED.4/5 TIMES READING THE JUDGEMENTS ONE CAN MAKE OUT WHAT IS ACTUAL SCENARIO.
AMENDMENTS TO ANY AMBIGUITY IN ACT ALSO IS NOT RULED OUT.
To ADD (to the earlier posted comment):
The point made /had in mind is to the effect that it is not within the powers of adjudication or interpretation (inherent or otherwise) of courts, not barring the apex court, to indulge in any ‘deeming’.
Attention is invited to Palkhivala’s Text Book commentary on the proposition,- “Legal Fiction can neither be indulged in by courts nor can be created by an administrative order” and the case law cited in support.
Further, in the instant case, in so indulging in ‘deeming’, quite a few of the well settled/long established principles/rules of interpretation, as enunciated in decided cases, for serving as aids unto selves , have been glossed over.
Moreover, the legal significance of ‘ EFFECTIVE DATE’ as prescribed by the legislature (herein it is April 1, 2021) seems to have been simply wished away or grossly oversighted.
Last but not least, there is no clue /way to know, in the absence of any clear mention, whether at all the representing counsel (s) had, during the proceedings, an opportunity or any indication even remotely or an inkling to get to know substance or the manner in which / grounds on which the Bench intended to pronounce its Ruling.
Though the matter has been decided by a 2 -Member Bench, having due regard to the spate of genuine controversies given rise to by, and the far-reaching consequences of a very serious nature the Judgment is potent with, there may be, in own perspective, a good scope for justifiably moving and having the matter finally decided by a larger or the largest Bench, thereby avoiding and saving the enormous cost , -to both taxpayers and the government,- of the otherwise inevitable procrastination and prolongation of the litigation.
OVER/BacK to…
Courtesy
It covers 9000 odd cases pending in high courts or all notices numbering more than 90000 where no writ was pending. And what is the situation of a case where orders notice was issued after 01.04.2021 and re-assessment order is also issued say on 30.03.2022 and appeal is yet to be filed. If it covers all notices issued “from 01.04.2021 till date” (i.e. till 04.05.2022), then all AO will have to start suo moto even if an order is already passed.