Ramadoss Srikanthi Vs ACIT (Madras High Court)
Madras High Court held that re-assessment notice and order thereof issued under section 148 of the Income Tax Act are valid since the same are issued within extended time limit in view of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 [TOLA]. Accordingly, writ dismissed.
Facts- Vide the present petition, the petitioner has challenged notices and orders issued under section 148 of the Income Tax Act. Impugned Notice dated 31.03.2021 was issued under Section 148 of the Income Tax Act, 1961 as in force till 31.03.2021. It was however reportedly served on the petitioner on 12.04.2021. It was deemed to be a notice issued under Section148A(b) of the Income Tax Act, 1961 as in force with effect from 01.04.2021 in terms of the decision of the Hon’ble Supreme Court in “Union of India and others Vs. Ashish Agarwal, 2022 SCC Online SC 543” rendered on 04.05.2022.
Another Impugned Order dated 30.07.2022 was passed under Section148-A(d) and the Notice dated 30.07.2022 issued under the amended Section 148 Notice as in force with effect from 01.04.2021 in terms of the above decision of the Hon’ble Supreme Court. However, confusion arose insofar as limitation under Section 149 and Section 153 of the Income Tax Act, 1961 as amended due to the application of the decision of the Hon’ble Supreme Court in “Union of India and others Ashish Agarwal, 2022 SCC Online SC 543”, in its attempt to balance the interest of the Income Tax Assessees and that of the Department.
