In the light of the recent ruling of the Apex Court saving around 90,000 re-assessments by deeming compliance of section 148A of the Income Tax Act, 1961, the Rajsthan High Court has directed the income tax department to proceed with the notices quashed earlier.
A two-judge bench of the Supreme Court comprising Justice M R Shah and Justice B V Nagaratna, on 4th May, upheld the reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond 01.04.2021 (the effective date of amendment of the said provision by the Finance Act, 2021) to be deemed to have been issued under Section 148A of the IT Act as substituted by the Finance Act, 2021 and be construed as show-cause notices in terms of section 148A(b).
Acting Chief Justice Mr. Manindra Mohan Shrivastava and Justice Madan Gopal Vyas was considering writ petition by Shri Raghav Trading Corp wherein the parties jointly submitted that the issue raised in this petition would be covered by order dated 04.05.2022 passed by the Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal.
Disposing the petition, the High Court observed that “Accordingly, this writ petition is also finally disposed off in terms of order dated 04.05.2022 passed by the Hon’ble Supreme Court in the case of Union of India & Others Vs. Ashish Agarwal (supra), as stated above. The authorities concerned shall proceed to decide the matter in accordance with the directions issued by the Hon’ble Supreme Court in para 10 of the aforesaid order.”
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