Case Law Details
Arati Marketing Pvt. Ltd. Vs Union of India & Ors. (Calcutta High Court)
Calcutta High Court held that the provisions of old regime of Section 148 of the Income Tax Act (including TOLA) cannot be applied to new regime applicable from 01.04.2021. Accordingly, impugned notices quashed being barred by limitation.
Facts- Vide the present writ petitions, the petitioners are impugning notices issued on or after 1st April, 2021, u/s. 148 (old) of the Income Tax Act, 1961, by converting or treating the same u/s. 148A(b) of the Income Tax Act, 1961 inserted by the Finance Act, 2021 which came into effect from 1st April, 2021 and all subsequent proceedings. The petitioner challenges the notices on the ground that the impugned notices have already become time barred after 31st March, 2021 under the old unamended Section 149(1)(b) of the Income Tax Act, 1961.
Notably, on March 31, 2020 the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, was promulgated. In terms of Section 3(1), time to issue notice under the old unsubstituted Section 148 of the Income Tax Act, 1961 which was due to expire on March 31, 2020, was extended to June 30, 2020.
Conclusion- Held that the provisions of TOLA which applied to the old law cannot be read into the new substituted regime to test the validity of a notice under old Section 148 of the Act issued on or after 01.04.2021
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