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.

3. Learned Counsel for the Respondents seeks and is granted six weeks time to file reply.

4. In the meantime, there shall be ad-interim relief in terms of prayer clause ‘D’ of the petition, till 11^th October, 2022.

5. List on 04^th October, 2022 alongwith WP(L) No. 24260 of 2022, WP(L) No. 24274 of 2022 and WP(L) No. 25125 of 2022.