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.
Accordingly, the High Court quashed the show cause notice under Section 148A(b), the order under Section 148A(d), and the notice under Section 148.
Cases Discussed
- Union of India and Others v. Rajeev Bansal (Supreme Court), [2024] SCC Online SC 2693
- Income Tax Officer, Ward-6144 and Others v. Venkatala Iyappa Rajanna (Karnataka High Court), 2025 SCC OnLine Kar 25214
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
The petitioner is aggrieved by the Notice under Section 148 of the Income Tax Act, 1961 [for short, the Act’] and other orders/ notice. The details of the impugned Show Cause Notice and the subsequent Order/ Notice are as follows:
| Sl. No. |
Notices/ Orders | Date | Provisions of Income Tax Act, 1961 | Annexures |
| 1 | Show Cause Notice |
19.05.2022 | 148A[b] | Al |
| 2 | Order | 28.07.2022 | 148A[d] | A2 |
| 3 | Notice | 28.07.2022 | 148 | A3 |
The impugned Show Cause Notice and the subsequent Order/ Notice are for the Assessment Year 2015-16. The question for consideration is whether the Notice under Section 148 of the Act for this Assessment Year could have been issued after 01.04.2021 in view of the concession made by the Revenue with the Apex Court in the ‘Union of India and Others v. Rajeev Bansal’1.
This question has come up for consideration in similar circumstances before a Division Bench of this Court in ‘Income Tax Officer, Ward-6144 and Others v. Venkatala Iyappa Rajanna’2. The Division Bench, referring to the afore decision of the Apex Court, has opined that in view of the concession made by the Revenue, the reassessment proceedings commenced with the Notices under Section 148 for the Assessment Year 2015-16 after 01.04.2021 must be dropped. In the present case, the Notice under Section 148 of the IT Act is issued on 28.07.2022. Therefore, the afore decision must be applied, and because the petition is being disposed of based on this decision, it must be observed that the issues canvassed otherwise by the petitioners are not examined and are left open. Hence the following:
ORDER
The writ petition is allowed quashing the Show Cause Notice dated 19.05.2022 [Annexure-A1], the impugned Order dated 28.07.2022 [Annexure-A2] and the impugned Notice dated 28.07.2022 [Annexure-A3] subject to the observation as aforesaid.
Notes:
1 [2024] SCC Online SC 2693
2 2025 SCC OnLine Kar 25214
