Court grants stay on Income Tax Act notice for reassessment proceedings; parties to submit affidavits. Fair procedure ensured.

The court granted a stay on the notice dated 07.06.2021 issued under Section 148 of the Income Tax Act, 1961 for reassessment proceedings concerning Assessment Year 2003-2004. The respondent was directed to file a counter-affidavit within three weeks, with the petitioner allowed to file a rejoinder before the next hearing on 15.09.2021. The court's decision to grant a stay and allow further submissions from both parties reflects a fair and procedural approach, considering similar issues in other petitions and parallel proceedings in the Bombay High Court.

---

---

Issues:
Challenge to notice dated 07.06.2021 under Section 148 of the Income Tax Act, 1961 for reassessment proceedings.

Analysis:
The writ petition challenges the notice dated 07.06.2021 issued by respondent no. 1 under Section 148 of the Income Tax Act, 1961, for the initiation of reassessment proceedings concerning Assessment Year 2003-2004. The petitioner's counsel argues that the issue raised in the petition is also pending before the Bombay High Court, as evidenced by Annexure-B in the paper book. The core issue revolves around the applicability of the newly inserted provisions of Section 148A and the amendments in Section 149 of the Act. The petitioner contends that the proceedings should adhere to the amended provisions. Notably, similar issues have arisen before the court in other petitions. Given that the department is contesting the same issue in the Bombay High Court, where an interim stay has been granted, the court deems it appropriate to issue a similar direction in this matter, particularly considering it pertains to AY 2003-2004.

The court directs the respondent to file a counter-affidavit within three weeks, with the petitioner allowed to file a rejoinder before the next hearing date. Meanwhile, a stay is imposed on the operation of the impugned notice dated 07.06.2021. The case is listed for the next hearing on 15.09.2021. The court's decision to grant a stay on the notice and allow further submissions from both parties demonstrates a fair and procedural approach to addressing the legal issues raised in the petition. The court's consideration of similar issues in other petitions and the parallel proceedings in the Bombay High Court indicates a cautious and consistent approach to ensuring legal clarity and fairness in the matter.

---