Gujarat HC quashes section 148 notice & section 148A(d) order for AY 2014-15

Vinod Fabrics Private Limited Vs ACIT (Gujarat High Court)

Gujarat High Court quashes Section 148 notice along with order under section 148A(d) for AY 2014-15, Post SC decision in UOI vs. Ashish Agrawal

FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT

1. The petitioner seeks to challenge the notice issued under Section-148 of the Income Tax Act, 1961 dated 30.06.2021. In view of judgment in case of Union of India Vs. Ashish Agarwal (2022) 138 Taxmann. Com, the respondent issued a notice under Section-148A(b) for the A.Y.2014-15 on 18.05.2022, which have been replied to eventually and the respondent passed an order under Section-148A(d) on 26.08.2022. A notice under Section-148 as per Finance Act, 2021 came to be passed on the very day.

2. The challenge is made by way of following prayers:-

7(A) be pleased to admit and allow this petition;

(B) be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction for quashing and setting aside the impugned notice dated 27.08.2022 u/s.148 of the Act at Annexure-F;

(C) pending admission, hearing and final disposal of the present petition, be pleased to stay the implementation, operation and execution of the impugned notice dated 27.08.2022 u/s.148 of the Act at Annexure-F;

(D) be pleased to grant any other and further relief which may be deemed fit and proper in the interest of justice.”

3. Rule made returnable forthwith. Ms. Kalpana Raval, learned senior standing counsel assisted by Mr. Karan Sanghani, learned advocate waives service of notice of rule for and on behalf of respondent.

4. On hearing both the sides and also, in wake of decision of this Court in case of Keenara Industries Private Limited Vs. The Income Tax Officer, Surat and allied matters; Special Civil Application No.17321 of 2022; decided on 07.02.2023, where this Court on the issue of limitation has allowed the plea of petitioner and quashed the notices for the A.Y. 2013-14 and A.Y.2014-15 issued by the respondent, this petition is also allowed applying the very reasonings without elaborating the same.

5. Resultantly, the petition is allowed quashing and setting aside the notice impugned dated 27.08.2022 issued under Section-148 of the Act alongwith the order dated 26.08.2022 issued under Section-148A(d) of the Act.

Rule is made absolute to the aforesaid extent.