Central Arecanut And Cocoa Marketing And Processing Co Operative Limited Vs ACIT (Karnataka High Court)
The Karnataka High Court allowed a writ petition challenging a Show Cause Notice dated 19.05.2022 issued under Section 148A(b) of the Income-tax Act, 1961, the order dated 28.07.2022 under Section 148A(d), and the consequential notice dated 28.07.2022 under Section 148, all relating to Assessment Year 2015-16.
The principal question before the Court was whether a notice under Section 148 for AY 2015-16 could be issued after 01.04.2021 in view of the concession made by the Revenue before the Supreme Court in Union of India and Others v. Rajeev Bansal.
The Court noted that the same issue had already been considered by a Division Bench of the Karnataka High Court in Income Tax Officer, Ward-6144 and Others v. Venkatala Iyappa Rajanna. Referring to the Supreme Court’s decision in Union of India and Others v. Rajeev Bansal, the Division Bench had held that, in view of the concession made by the Revenue, reassessment proceedings initiated through notices under Section 148 for AY 2015-16 after 01.04.2021 were required to be dropped.
Since the impugned notice under Section 148 in the present case had been issued on 28.07.2022, the High Court applied the earlier Division Bench decision. The Court clarified that, as the writ petition was being disposed of on that basis, the other issues raised by the petitioner were neither examined nor decided and were left open.
