Whether cases selected U/s 148 after 31st March 2021 may be quashed as issued without following due procedure of law ?
Validity of Notice issued U/s 148 after 31st March 2021: Bombay HC gave Ad Interim Stay for not following the new procedure U/s 148
Armada D1 Pte. Ltd ( WRIT PETITION (L) NO.11766 OF 2021)
Facts:
1. A notice for reopening of assessment was issued dated 7th April, 2021 under Section 148 of the Income Tax Act for the assessment year 2013- 2014.
2. Vide Notification 20/2021, CBDT had extended the time limit to issue notices U/S 148 which were time barred on 31st March to 30th April 2021.
3. However, Section 148A has been introduced vide Finance Act 2021 with effect from 01.04.2021 which requires certain compliances to be followed by the AO before issuing the notice u/s 148. The AO has to conduct an inquiry and also give a reasonable opportunity to be heard before issuing notice U/S 148.
4. The procedure laid down U/S 148A was not followed by the AO.
The Hon Bombay HC granted an ad-interim stay until the next date i.e 1/7/21, to the proceedings in connection with notice dated 7th April, 2021.
