High Court quashes Income Tax notice pre-amendment, streamlining pending writ petitions

The High Court, following the Supreme Court's decision, quashed a notice issued under Section 148 of the Income Tax Act for the Assessment Year 2015-16 on 30th March 2021, prior to the amendment date. The court emphasized the quashing of the notice and subsequent proceedings, disposing of the writ petition accordingly. The Supreme Court's ruling distinguished between notices issued before and after 1st April 2021, setting aside judgments of various High Courts post the amendment date to streamline the process and govern pending writ petitions challenging similar notices.

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Issues:
Validity of notices issued by Income Tax Department under Section 148 of the Income Tax Act, 1961 prior to and after the amendment by the Finance Act 2021.

Analysis:
The High Court considered the Judgment dated 4th May 2022, passed by the Supreme Court of India in Civil Appeal No.3005 of 2022, regarding the validity of notices issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961. The Supreme Court distinguished between notices issued before and after 1st April 2021, the date when the new amended provisions (Sections 147 to 151) came into effect. The Supreme Court's order was made applicable PAN INDIA, setting aside judgments of various High Courts related to notices issued post 1st April 2021. The Supreme Court's order aimed to avoid further appeals and govern pending writ petitions challenging similar notices issued after the specified date.

Regarding a specific case where a notice under Section 148 of the Act for the Assessment Year 2015-16 was issued on 30th March 2021, prior to the amendment date and beyond the six-year period after the AY in question, the High Court, in light of the Supreme Court's judgment and its own previous order, quashed the notice and subsequent proceedings. The High Court disposed of the writ petition accordingly, emphasizing the quashing of the notice and subsequent orders. An urgent certified copy of the order was directed to be issued as per rules.

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