Operative part of the Supreme Court justifying section 148 notice issued by the Income Tax Department for reassessment proceeding initiated after 01.04.2021

 

Here is the operative part of the landmark order passed by Hon’ble Supreme Court, in the Case of Ashish Agarwal & others Vs Union of India & others while deciding the case No 3005/2022. In this case an out of the box order is passed by the Hon’ble Apex Court which needs to be read purposefully. The implications are going to be much wider and is a standing order for all the 90000 cases where section 148 was issued by the Ld AO. One may note that the ruling applies not only to the 9000 cases pending before the courts or decided, but it applies to all 90000 cases where the proceedings were initiated.

 

10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:(i) The impugned section 148 notices issued to therespective assessees which were issued under unamended section 148 of the IT Act, which were the
    subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be showcause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assesees can reply to the showcause notices within two weeks thereafter;(ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a onetime measure visàvis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts.
    Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned
    Assessing Officers to hold any enquiry, if required;(iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the
    procedure as required under section 148A may issue notice under section 148 (as substituted);

    (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be
    available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available.

The copy of the order is as under:

 

 

SC in Ashish Agrawal Vs UOI (1)