Bagaria Properties and Investment Pvt. Ltd. & 1082 Anr. Vs. U.O.I & Ors. (Calcutta High Court)
Introduction: –
Hon. Calcutta High Court Quashes Notices under Section 148 of Income Tax Act, 1961 which were Issued After 31st March 2021 in 1083 cases.
The Finance Act, 2021 has Substituted the provisions relating to Reassessment and a new set of reassessment proceedings have been introduced from 1st April 2021.
On 29th September, 2020, The Relaxation Act was passed by the Parliament, which provided for extension of various time limits for completion of actions under the specified Acts.
The Central Board of Direct Taxes (C.B.D.T) by way of notifications, under power conferred to it by Relaxation Act. had extended the time limit of issuing the notice U/s 148 of the Act which were to be issued on or before 31st March, 2021 to 30th June 2021. On the basis of such notifications the Income tax department has issued many Section 148 notices for several assessment years (A.Y. 2013-14 onwards) after 31st March 2021.
Many writ petitions have been filed across the country challenging the notices issued u/s 148 after 31st march 2021 and notifications issued by CBDT to extend the time limits for issuing such notices, various courts have also stayed the reassessment proceedings.
The debatable questions are:
