Court issues notice challenging Income Tax Act notice relying on Finance Act, 2021 provisions.

The court, comprising SUNIL P. DESHMUKH & ABHAY AHUJA, JJ., issued notice to respondents and the Attorney General regarding a challenge to a notice issued under section 148 of the Income Tax Act, 1961. The petitioner argued that the notice relied on provisions substituted by the Finance Act, 2021, and urged the court to strike down these provisions as unconstitutional. Respondents' counsel waived notice and requested time to reply. The court granted the request, scheduled further hearing, and stayed any action on the notice until legal issues were resolved.

---

---

Issues Involved:
Challenge to the validity of a notice under section 148 of the Income Tax Act, 1961 based on the substitution of provisions by the Finance Act, 2021.

Analysis:
The petitioner, represented by Mr. Jehangir Mistri, Senior Advocate, challenged the impugned notice issued under section 148 of the Income Tax Act, 1961, dated 21/05/2021, on various grounds. The petitioner argued that the notice was untenable as it invoked provisions of the Income Tax Act that had been substituted by the Finance Act, 2021, effective since 01/04/2021. Mr. Mistri contended that the notice relied on non-existent earlier provisions of the Income Tax Act, 1961, which had been substituted under the Finance Act, 2021. He specifically referred to the provisions of section 3(1) of The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act, 2020, along with notifications dated 31st March, 2021, and 27th April, 2021, arguing that they were ultra vires the Income Tax Act and the Finance Act, 2020, and unconstitutional. The petitioner urged the court to strike down these provisions.

The court, comprising of SUNIL P. DESHMUKH & ABHAY AHUJA, JJ., issued notice to the respondents and the Attorney General of India regarding the challenge raised by the petitioner. Mr. Suresh Kumar, learned Counsel for the respondents, waived the service of notice and requested four weeks to file a reply. The court granted the requested time and scheduled the matter for further hearing on 02/08/2021. Additionally, the court ordered that no further action should be taken based on the impugned notice until the next hearing date, effectively staying any proceedings related to the notice until the legal issues raised were addressed and resolved.

---