Case Law Details
Mudra Finance Limited Vs ITO (Delhi High Court)
Petitions have been heard by way of video conferencing.
Present writ petitions have been filed challenging t he notices dated 09th June, 2021, 30th June, 2020 and 28th June, 2020 issued in W.P. (C) 6442/2021, 6443/2021 and 6451/2021 respectively by respondent No.1 under section 148 of the Income Tax Act, 1961 [for short ‘the Act’] and the proceedings initiated subsequent thereto. Petitioners also challenge the ‘Explanation’ contained in the notification no. 20/2021 dated 31st March, 2021 and no. 38/2021 dated 27th April, 2021 issued by respondent no. 2-Central Board of Direct Taxes.
Learned counsel for the petitioners states that the impugned notices are invalid in the eyes of law and void from inception as they were issued without following the process of issuance of prior notice under section 148 A of the Act. He submits that the impugned notices are in valid as they have been issued under the pre-amended provisions of t h e Act, which were no longer in force on the date of the impugned notices. He emphasises that the amendments are applicable to all the notices issued under Section 148 of the Act post 01st April, 2021.
Learned counsel for the petitioners states that the impugned notifications issued by the Respondent-2 are ultra vires the Act in sofar as they contain the ‘explanation’ clarifying that the pre-amended Sections 148, 149 and 151 of the Act shall govern the issue of notice under Section 148 post 01st April, 2021. According to him, Section 3(1) of the Tax action and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 authorizes the Central Government to only extend the time limits and nothing more.
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