Bombay HC stayed Section 148 proceedings for AY 2014-15

Narendra Gangadas Kanakia Vs Union of India (Bombay High Court)

Hon’ble Bombay High Court has stayed the proceedings under Section 148 of the Income Tax Act 1961 for AY 2014-15. The initial notice was issued after the time limit under old Section 148 expired. However on the basis of the judgment of the Supreme Court in Union of India v Ashish Agarwal, the old Section 148 notice was treated as show cause notice under the new Section 148A(b). A circular (Instruction dated 11 May 2022) was also issued by CBDT wrongly reading the judgment of the Supreme Court as allowing reopening for AY 2014-15. The circular as well as the order under Section 148A(d) has been challenged in this Petition.

FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT

1. Learned Counsel for the Petitioner states that the impugned notice and order dated 30^th June, 2022 are unsustainable in law inasmuch as the same are issued beyond the period of limitation.

2. Issue notice. Service waived by Mr. Suresh Kumar, learned Counsel for the Respondents.

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