The Gauhati High Court has stayed the reassessment notice for not following new procedure for issuance of notice where Income has escaped Assessment after 31 March 2021.
The petitioner, M/s JSVM Plywood Industries has assailed the impugned notice dated 30.06.2021 issued under section 148 of the Income Tax, 1961 while referring to the said newly inserted provision of section 148A of the Income Tax Act, it is projected that the Assistant Commissioner of Income Tax (respondent no.2) had given a go-bye to the said mandatory provisions which requires the said authority to conduct an inquiry, if required, with prior approval of the competent authority and also to provide an opportunity of being heard to the assesses by issuing a notice to show-cause as to why a notice under section 148 should not be issued.
However, the Department referred to two notifications dated 27.02.2021 and 31.03.2021 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes by virtue of which in exercise of power conferred by sub-section (1) of section 3 of the Taxation and Other laws (Relaxation and Amendment of Certain Provisions) Act, 2020. By the notification dated 27.02.2021, time-limits for various provisions, but without interfering with the time-limit provided in section 148 of the Income Tax Act, were extended. Accordingly, the said notification is of no relevance in the present case. By notification dated 31.03.2021, the time limit prescribed for compliance of any action including issuance of notice under section 148 was extended till 30.06.2021. Accordingly, it is submitted that the notice under section 148 of the Income Tax Act, which is impugned in this case was issued under the earlier regime of section 148 i.e. as it stood prior to 01.04.2021, was saved and was lawful and sustainable on facts and in law.
The single bench of Justice Kalyan Ray Surana was prima facie of the opinion that for the purpose of interim order, is that by virtue of notifications dated 27.02.2021 and 31.03.2021 issued by the Central Board of Direct Taxes, as referred herein before, though extends the period of limitation in respect of issuance of notice under section 148 of the Income Tax, Act, but the said notification is not found to empower the Central Board of Direct Taxes to put into oblivion the provision of section 148A of the Income Tax Act, which was inserted by virtue of the Finance Act, 2021 and was notified w.e.f. 01.04.2021, as if the said section 148A would not apply till limitation prescribed under section 148 does not lapse or expire.
The court while listing the matter on January 24, 2022 held that stayed the operation of impugned notice dated 30.06.2021 issued under section 148 of the Income Tax, 1961.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
