Case Note & Summary
The petitioner, Jashuben Ratilal Patel, filed a Special Civil Application under Article 226 of the Constitution of India before the Gujarat High Court challenging the order under section 148A(d) of the Income Tax Act, 1961 dated 30.07.2022 for Assessment Year 2013-2014. The respondent, Income Tax Officer, Ward 2(3)(1), Surat, had issued a notice under section 148 of the Act on 28.06.2021 during the extended time period as per the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (TOLA). Following the Supreme Court's decision in Union of India v. Ashish Agarwal, this notice was to be treated as a notice under section 148A(b) of the Act, which came into effect from 01.04.2021. The Supreme Court in Union of India v. Rajeev Bansal laid down the law that the validity of such notices depends on the surviving time between the date of issuance of the notice under section 148 read with section 3(1) of TOLA and June 30, 2021. The Gujarat High Court, in Dhanraj Govindram Kella v. Income Tax Officer, had held that each matter must be considered separately based on the date of issuance of the notice under TOLA and the date of supplying information. In the present case, the notice under section 148 was issued on 28.06.2021, leaving no surviving time between that date and June 30, 2021. Consequently, the subsequent notice under section 148A(d) dated 30.07.2022 was invalid. The court quashed and set aside the impugned order, allowing the petition.
Headnote
A) Income Tax - Reassessment Notice - Section 148A(d) of Income Tax Act, 1961 - Validity of Notice - The petitioner challenged the order under section 148A(d) dated 30.07.2022 for AY 2013-2014 on the ground that the notice was invalid and time barred. The court examined the notice issued under section 148 on 28.06.2021 during the extended period under TOLA, which was treated as notice under section 148A(b) after Ashish Agarwal. Applying Rajeev Bansal, the court found that no surviving time remained between the date of notice (28.06.2021) and June 30, 2021, rendering the subsequent notice under section 148A(d) invalid. Held that the notice is quashed and set aside. (Paras 1-8) B) Income Tax - Reassessment - Surviving Time - Section 148 of Income Tax Act, 1961 read with TOLA - The court relied on the decision in Dhanraj Govindram Kella v. Income Tax Officer, which held that each matter must be considered separately based on the date of issuance of notice under TOLA and the date of supplying information. In this case, since the notice under section 148 was issued on 28.06.2021, there was no surviving time left to issue a valid notice under section 148A(b) read with section 148A(d). Held that the notice is invalid. (Paras 6-8)
Issue of Consideration
Whether the notice under section 148A(d) of the Income Tax Act, 1961 dated 30.07.2022 for Assessment Year 2013-2014 is invalid and time barred in light of the principles laid down in Union of India v. Rajeev Bansal regarding surviving time.
Final Decision
The petition is allowed. The order under section 148A(d) of the Income Tax Act, 1961 dated 30.07.2022 is quashed and set aside.
Law Points
- Notice under section 148 of Income Tax Act
- 1961 issued during extended period under TOLA must be treated as notice under section 148A(b) after Ashish Agarwal
- validity depends on surviving time between notice date and June 30
- 2021 as per Rajeev Bansal
- each case to be examined on its own facts
