Ramnivas Satyanarayan Dodiya Vs National Faceless Assessment Centre And Others (Bombay High Court)
Summary: Bombay High Court considered a writ petition challenging a notice dated 30.03.2021 issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2013-14. The petitioner raised various grounds against the reassessment notice, principally contending that the material relied upon by the Assessing Officer emanated from information arising out of assessment proceedings relating to searched persons. According to the petitioner, in such circumstances the special provisions of Section 153C superseded the general reassessment provisions under Section 148 and, therefore, any proceedings against the petitioner could only have been initiated under Section 153C.
The High Court found that the issue required consideration. At this stage, however, the Court did not finally adjudicate whether Section 153C necessarily excluded proceedings under Sections 147/148 in the facts of the petitioner’s case, nor did it quash the impugned reassessment notice. Instead, the Court granted the respondents time to file an affidavit-in-reply on or before 10.06.2022, with liberty to the petitioner to file a rejoinder within one week thereafter.
The matter was directed to be placed for admission on 22.06.2022. Significantly, as an interim measure, the Bombay High Court restrained the respondents from proceeding with the impugned Section 148 notice against the petitioner until 24.06.2022. Thus, the order is an interim procedural order granting protection to the petitioner while keeping open the substantive jurisdictional controversy concerning the applicability of Section 153C vis-à-vis Section 148 where reassessment is sought on the basis of material or information connected with searched persons.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. The petitioner has impugned notice dated 30.3.2021 issued under Section 148 of the Income Tax Act, 1961 by respondent no.3 for assessment year 2013-14, on various grounds. The submission of the petitioner is that Section 153-C supersedes the application of provisions of Section 148 of the Income Tax Act and thus, the action if any, which could be initiated by the Assessing Officer is to be only under Section 153-C of the Income Tax Act, in view of the fact that the material relied upon by the Assessing Officer is out of the information alleged to have been received under assessment order of searched persons, the matter requires consideration.
2. The respondents are at liberty to file affidavit-in-reply on or before 10.6.2022 and copy thereof be served on the learned Counsel appearing for the petitioner. Simultaneously, re-joinder if any, be filed within one week thereafter.
3. Place the matter on board for admission on 22.6.2022.
4. Till 24.6.2022, the respondents shall not proceed with the impugned notice under Section 148 of the Income Tax Act against the petitioner.
