Polypeptide Laboratories Pvt. Ltd. Vs ACIT (Bombay High Court)
The Bombay High Court allowed a writ petition challenging the notice dated 29.07.2022 issued under Section 148 of the Income-tax Act, 1961, and the order dated 28.07.2022 passed under Section 148A(d) for Assessment Year 2015-16.
The petitioner sought quashing of the reassessment proceedings initiated under Articles 226 and 227 of the Constitution of India.
The Court noted that the Revenue had initially issued a notice under Section 148 dated 05.04.2021 for AY 2015-16. Following the Supreme Court’s decision in Union of India vs. Ashish Agarwal (2022) 138 taxmann.com 64 (SC), notices issued between 01.04.2021 and 30.06.2021 were to be treated as show cause notices under Section 148A(b). Accordingly, the notice dated 05.04.2021 was treated as a notice under Section 148A(b), after which an order under Section 148A(d) was passed on 28.07.2022, followed by a fresh notice under Section 148 dated 29.07.2022.
The High Court observed that the issue of limitation had subsequently been considered by the Supreme Court in Union of India vs. Rajeev Bansal [2024] 167 taxmann.com 70 (SC). Referring to paragraph 19 of that judgment, the Court noted the Revenue’s concession before the Supreme Court that, for Assessment Year 2015-16, all notices issued on or after 01.04.2021 would have to be dropped as they would not fall for completion within the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).
