Case Law Details
Vivek Saran Agarwal Vs Union of India and 3 Others (Allahabad High Court)
Introduction: A recent judgment by the Allahabad High Court in the case of Vivek Saran Agarwal vs. Union of India and Others reaffirms the principle that orders issued under the Income Tax Act should first be subject to appeals rather than being immediately challenged through writ jurisdiction.
Detailed Analysis: The matter revolves around a challenge to an order dated May 25, 2023, issued by the Assessing Officer of the Income Tax Department (Respondent No.4). This order was issued under Section 147 read with Section 144-B of the Income Tax Act, 1961. It pertained to the assessment of an annual income of Rs.1,20,59,813 for the Assessment Year 2015-16, along with a tax demand of Rs.73,12,082.
The petitioner’s claim was rooted in the contention that they had already electronically filed their return for the Assessment Year 2015-16 on December 1, 2015, declaring an income of Rs.12,69,380. It is stated that the income was assessed and accepted as the returned income via an assessment order dated January 18, 2017, following due examination.
However, the Income Tax Act, 1961 was amended with the Finance Act of 2021, effective from April 1, 2021, bringing changes to the provisions related to reassessment (Sections 147, 148, 149, 151, 151A, etc.). As a result, certain notices issued under the unamended Section 148 of the Act were challenged in various High Courts and subsequently quashed. Nevertheless, the Supreme Court, in the case of Union of India vs. Ashish Agarwal, held that notices issued under the unamended Section 148 would be considered as having been issued under Section 148A of the Act. This prompted the Respondent No. 3 to issue notices in accordance with Section 148A(b) on May 24, 2022, and July 12, 2022. The petitioner responded to these notices, but the Assessing Officer (Respondent No. 3) ultimately passed the order under Section 148A(d) on May 25, 2022, along with a notice dated July 22, 2022, under Section 148 of the Income Tax Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
