The Income Tax Department challenged the impugned order of the Gujarat High Court in Parasram Fabrics Ltd.
In the case of Parasram Fabrics, the Gujarat High Court the petitioner challenged the notice issued under Section-148 of the Income Tax Act, 1961 dated 25.06.2021. In view of judgment in case of Union of India Vs. Ashish Agarwal, the respondent issued a notice under Section-148A(b) for the A.Y.2013-14 on 24.05.2022, which have been replied to eventually and the respondent passed an order under Section-148A(d) on 30.08.2022. A notice under Section-148 as per Finance Act, 2021 came to be passed on 31.08.2022.
The Gujarat High Court observed that “On hearing both the sides and also, in wake of decision of this Court in case of Keenara Industries Private Limited Vs. The Income Tax Officer, Surat and allied matters; Special Civil Application No.17321 of 2022; decided on 07.02.2023, where this Court on the issue of limitation has allowed the plea of petitioner and quashed the notices for the A.Y. 2013- 14 and A.Y.2014-15 issued by the respondent, this petition is also allowed applying the very reasoning without elaborating the same. Resultantly, the petition is allowed quashing and setting aside the notice impugned dated 31.08.2022 issued under Section-148 of the Act along with the order dated 30.08.2022 under Section-148A(d).”
A Two-Judge Bench comprising Justice BV Nagarathna and Ujjal Bhuyan observed that “Delay condoned. Issue notice to the respondent.”
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