Apex Court modifies Allahabad HC order, deems section 148 notices under 148A. Assessors to follow new directives.

The Hon'ble Apex Court partially set aside the High Court of Judicature at Allahabad's order and judgment, issuing directions including deeming section 148 notices as issued under section 148A. The requirement of prior approval for conducting inquiries under section 148A(a) was waived for notices issued under the unamended Act. Assessing officers were directed to pass orders under section 148A(d) for each assessee. All defenses and rights under the Finance Act, 2021, and the law were preserved. The judgment quashed assessment orders, allowing aggrieved parties to challenge them, and instructed the Revenue to restart the process as per the Apex Court's directions.

---

---

Issues:
1. Partial setting aside of the order and judgment passed by the High Court of Judicature at Allahabad.
2. Directions given by the Hon'ble Apex Court in paragraph no. 10.
3. Deeming of section 148 notices issued to the assessees under unamended section 148 of the IT Act as issued under section 148A.
4. Dispensing with the requirement of conducting any enquiry with prior approval under section 148A(a).
5. Assessing officers to pass orders in terms of section 148A(d) for each assessee.
6. Availability of all defences and rights under the Finance Act, 2021 and in law.
7. Disposal of all petitions and quashing of assessment orders.
8. Permission for aggrieved parties to take further steps.
9. Quashing of assessment orders and consequential orders/notices.
10. Direction for Revenue to restart the process.

Analysis:
The High Court of Bombay dealt with a case where the Hon'ble Apex Court partially set aside the order and judgment passed by the High Court of Judicature at Allahabad, along with judgments from other High Courts, including the High Court of Bombay. The Apex Court issued directions in paragraph no. 10 of the judgment, allowing the appeals in part and modifying the judgments and orders passed by the High Court at Allahabad. The directions included deeming the section 148 notices issued under the unamended section 148 of the IT Act as issued under the substituted section 148A, requiring the assessing officer to provide information and material to the assessees for replying to show-cause notices within a specified time frame.

Furthermore, the requirement of conducting any enquiry with prior approval under section 148A(a) was dispensed with as a one-time measure for notices issued under the unamended Act from a specific date. The assessing officers were directed to pass orders for each assessee in accordance with section 148A(d) and to issue notices under the substituted section 148 thereafter. The judgment emphasized that all defences available to the assessees under the IT Act and all rights under the Finance Act, 2021, and in law, shall continue to be available.

As a result of the above directions, all petitions were disposed of, and the judgment allowed aggrieved parties to take further steps if they were dissatisfied with the orders passed by the Assessing Officer. Assessment orders that had been passed were quashed and set aside, along with consequential orders and notices. The Revenue was directed to restart the process in accordance with the directions provided by the Hon'ble Apex Court.

---