PRASHANT SHARMA Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Challenge in this petition is to the notice dtd. 30/6/2021 (Annexure P-1) issued under Sec. 148 of the Income Tax Act, 1961.

(2.) Learned counsel for the petitioner would submit that the petitioner has filed the income tax return for the Assessment Year 2013-14 and Financial Year 2012-13. Subsequent thereto on the basis of some information available initially a scrutiny was done however no concealment was found but again a notice under Sec. 148 of the Income Tax Act, 1961 has been issued. It is submitted that on the date i.e. on 30/6/2021 when the notice under Sec. 148 of the Income Tax Act (hereinafter referred to as "Act of 1961") is issued, the power to issue the notice was preceded with a new provision of law and thereby Sec. 148 is to read with Sec. 148-A of the Income Tax Act, 1961. He would submit that as per the amended Finance Act, 2021, which was published in the Gazette on 28/3/2021, sec. 2 to 88 was notified to come into force on 1st day of April 2021 and accordingly the new Sec. 148A was inserted which prescribed that before issuing the notice under Sec. 148 of the Income Tax Act, the Assessing Officer was bound to conduct an enquiry giving an opportunity of hearing to the assessee with the prior approval of specified authority and show cause notice in detail was necessary specifying particular date for hearing. He would submit that since the operation of Sec. 148A came into being on 1/4/2021, as such, the notice issued to the petitioner on 30/6/2021 under Sec. 148 of the Income Tax Act, without following the procedure under Sec. 148A without giving an opportunity of hearing would be illegal and contrary to the provisions of Sec. 148A and it cannot be sustained. It is further submitted that the respondents though have placed reliance on certain notification of Ministry of Finance but when the law has been enacted by the Parliament then in such case the notification issued by the Ministry of Finance would not over ride even to extend the period of operation of sec. of the old Act of Sec. 148 of the Income Tax Act. It is stated Sec. 148A came in between which requires certain obligation to be performed by the Assessing Officer, therefore without giving any opportunity of hearing the notice under Sec. 148 of the Act, 1961 would be alleged. He therefore submits that the impugned notice is illegal and is liable to be quashed.

(3.) Per contra, learned counsel for the respondents would submit that because of pandemic and lock down of all activities including the normal working of office, lot of people could not file their return and submit the necessary papers with the department in respect of their income tax. As such, the Ministry of Finance in exercise of power under the Finance Act issued the notification whereby the application of old provisions of Sec. 148 of the Income Tax Act was extended initially uptill 30/4/2021 and thereafter was further extended uptill 30th day of June, 2021. He would submit therefore the notice issued by Annexure P-1 dtd. 30/6/2021 would be within its ambit of the power of department in the extended time of it's operation till 30/6/2021. Consequently, the notice under Sec. 148 of the Income Tax Act is completely valid and legal.