Winro Commercial India Ltd. Vs Winro Commercial India Ltd. (Calcutta High Court)
The petitioner challenged the notice dated 30 June 2021 issued under Section 148 of the Income Tax Act, 1961 for assessment year 2016-2017, contending that the mandatory requirements of Section 148A had not been complied with before issuance of the notice. The petitioner also challenged the constitutional validity of the Taxation and other Law (Relaxation and Amendment of Certain Provisions) Act, 2020. In support, the petitioner relied upon the order dated 15 July 2021 in Bagaria Properties and Investments Private Limited & Anr. vs. Union of India & Ors., where the Court had stayed a Section 148 notice for non-compliance with Section 148A. The respondents were unable to deny that Section 148A had not been complied with before issuance of the impugned notice and were also unable to distinguish the cited decision. Considering the submissions, the Court directed the respondents to file an affidavit-in-opposition within six weeks, with the petitioner permitted to file a reply within two weeks thereafter. The matter was listed for final hearing on 26 November 2021. In the meantime, the respondents were restrained from proceeding further on the basis of the impugned notice dated 30 June 2021. The parties were also directed to be ready with short written notes of argument at the hearing.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
Affidavit-of-service filed in court be kept on the record.
In this matter petitioner has challenged the impugned notice dated 30th June, 2021 relating to assessment years 2016-2017 under Section 148 of the Income Tax Act, 1961 on the ground that before issuing notice under Section 148 of the Act, mandatory provisions of Section 148A of the Act which cast statutory obligation on the part of the Assessing Officer to comply the provisions of the same before issuing any notice under Section 148 of the Act has not been complied with by the Assessing Officer.
Petitioner has also challenged the Constitutional validity of the provisions of the Taxation and other Law (Relaxation and Amendment of Certain Provisions) Act, 2020.
Learned Advocate appearing for the petitioner in support of his contention has relied on my order dated 15th July, 2021 in WPA No.244 of 2021 in the case of Bagaria Properties and Investments Private Limited & Anr. vs. Union of India & Ors. on the similar issue where I have stayed the impugned notice under Section 148 of the Income Tax Act, 1961 for non compliance of the provisions of Section 148A of the Act.
The learned Advocate for the respondents is not able to deny the allegations of the petitioner that Section 148A provisions of the Income Tax Act, 1961 was not complied with in this case before issuing notice under Section 148 of the said Act and was not able to distinguish the aforesaid unreported decisions.
Considering the submissions of the parties, I direct the respondents to file affidavit-in-opposition within six weeks from date. Petitioner to file reply thereto, if any, within two weeks thereafter.
List the matter for final hearing on 26.11.2021.
In the meantime, respondents are restrained from proceeding any further on the basis of the aforesaid impugned notice dated 30th June, 2021 being Annexure P1 to the writ petition.
At the time of hearing, parties should be ready with short written notes of argument.
