Tirath Ram Surinder Paul Vs ITO (Punjab & Haryana High Court)
Summary: The Punjab & Haryana High Court allowed the writ petition filed by Tirath Ram Surinder Paul and quashed notices dated 09.04.2021 and 27.07.2022 issued under Section 148 of the Income-tax Act, 1961 for Assessment Year 2015-16. The petitioner submitted that the controversy was fully covered in its favour by the Supreme Court’s decision in Deepak Steel and Power Limited vs. Central Board of Direct Taxes & Ors., wherein the Supreme Court referred to the Revenue’s concession recorded in Union of India and Ors. v. Rajeev Bansal that, for AY 2015-16, all notices issued on or after 1 April 2021 would have to be dropped as they would not fall for completion during the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Counsel for the Revenue fairly conceded before the High Court that the petitioner’s case was covered in its favour by the observations in Deepak Steel. Taking note of this stand and applying the Supreme Court’s observations, the High Court allowed the petition and quashed both impugned notices. No costs were imposed and all pending miscellaneous applications were also disposed of.
Cases Discussed
- Deepak Steel and Power Limited vs. Central Board of Direct Taxes & Ors. — Supreme Court, Civil Appeal No. 5177 of 2025 arising out of SLP (C) No. 5632/2023, order dated 02.04.2025 — Followed. The High Court applied the Supreme Court’s observations concerning reassessment notices for AY 2015-16 issued on or after 1 April 2021.
- Union of India and Ors. v. Rajeev Bansal — Supreme Court, 2024 SCC OnLine SC 2693 — Referred to in Deepak Steel for the Revenue’s concession that for AY 2015-16 all notices issued on or after 1 April 2021 would have to be dropped.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB & HARYANA HIGH COURT
1. Through this petition, the petitioner challenges notices dated 09.04.2021 and 27.07.2022 pertaining to the assessment year 2015-16 issued to the petitioner by the respondents-revenue under Section 148 of the Income-tax Act, 1961.
2. At the outset, learned counsel for the petitioner submits that the petitioner’s case is fully covered in its favour by the following observations made by the Supreme Court on 02.04.2025 passed in Civil Appeal No. 5177 of 2025 (arising out of SLP (C) No.5632/2023)-Deepak Steel and Power Limited vs. Central Board of Direct Taxes & Ors: –
“4. The learned counsel appearing for the revenue with his usual fairness invited the attention of this Court to a three judge bench decision of this Court in Union of India and Ors. v. Rajeev Bansal, reported in 2024 SCC OnLine SC 2693, more particularly, paragraph 19(f) which reads thus: –
“19. (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.”
5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016, all notices issued on or after 1st April, 2021 will have to be dropped as they would not fall for completion during the period prescribed under the taxation and other laws (Relaxation and Amendment of certain Provisions Act, 2020). Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.6.2021.”
3. Learned counsel for the respondent(s)-revenue very fairly concedes that the petitioner’s case would be covered in its favour by the afore quoted observations of the Supreme Court in Deepak Steel and Power Limited’s case (supra).
4. In the light of the above fair stand taken by learned counsel for the respondent(s)-revenue and in terms of the afore quoted observations by the Supreme Court in Deepak Steel and Power Limited’s case (supra), we allow the present petition resulting in the quashing of the impugned notices dated 09.04.2021 and 27.07.2022.
5. No costs.
6. Pending miscellaneous application(s), if any, also stand disposed of.
