ACIT Vs Anil Kumar Bhikhabhai Virani (Supreme Court of India)
The proceedings arose from a batch of writ petitions before the Gujarat High Court challenging reassessment notices issued under Section 148 of the Income Tax Act, 1961 for Assessment Years 2013-14 and 2014-15. The controversy followed the substitution of Sections 147 to 151 by the Finance Act, 2021 with effect from 01.04.2021, including the introduction of Section 148A. Despite the new regime coming into force, reassessment notices had been issued under the erstwhile provisions between 01.04.2021 and 30.06.2021, relying upon the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) and related notifications.
Read HC Judgment in this case: Gujarat HC quashed Section 148 notices for AY 2013-2014 & 2014-2015
Following the Supreme Court’s judgment in Union of India vs. Ashish Agarwal, the earlier notices were treated as show-cause notices under Section 148A(b), information and material were supplied to the assessees, replies were filed, orders under Section 148A(d) were passed, and fresh notices under Section 148 were issued. In the petitions forming Batch-I, concerning AY 2013-14, an example recorded in the judgment shows the original Section 148 notice dated 24.06.2021, followed by a Section 148A(b) notice dated 28.05.2022, reply dated 09.06.2022, Section 148A(d) order dated 26.07.2022 and fresh Section 148 notice dated 26.07.2022. Similar proceedings applied to Batch-II concerning AY 2014-15.
