Notice under Section 148 stayed by Bombay High Court in view of conflict between new Income Tax Provisions for reopening of Assessment with Old Provisions
On 3rd June Bombay High Court has stayed the operation of Notice under Section 148 dated 7th April 2021 for Assessment Year 2013-14 in the case of Armada D1 Pte Limited vs. DCIT in Writ Petition (L) No. 11766 of 2021 due to the reason of not issuing notice under section 148-A which is a precondition for issuing notice under section 148 now as per Finance Act 2021. Under old provisions there was no requirement of issuing notice under section 148. An interim stay is granted on Notice under Section 148 dated 7th April 2021. The department is permitted to file reply within three weeks. Matter listed for 1st July 2021.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
1. By this Petition, the Petitioner is challenging the notice dated 7th April, 2021 issued by Respondent No.1 under Section 148 of the Income Tax Act, 1961 (‘the Act’) for the assessment year 2013-2014 on the ground that the Respondents have violated the mandatory provisions for issuance of notice, which have been effective from 1st April, 2021.
2. Mr. Pardiwalla, the learned Senior Counsel for the Petitioner drew our attention to the notice annexed at Exhibit ‘L’ with reference to the provisions of Section 148A of the Act, which requires the assessing offcer to conduct the inquiry and also provide an opportunity of being heard, which has not been apparently done. He, therefore, seeks stay of further proceedings in the matter.
3. The learned counsel for the Respondent-Revenue submits that she needs time to fle reply in the matter.
4. In this view of the matter, we are inclined to stay the proceedings in connection with notice dated 7th April, 2021 under Section 148 of the Income Tax Act for the assessment year 2013-2014. Till the next date, there shall be ad-interim stay to the proceedings in connection with notice dated 7th April, 2021.
5. The Respondent-Revenue is permitted to fle its reply within a period of three weeks from today. Rejoinder, if any, to be fled in the week thereafter.
6. List the matter on 01/07/2021.