Court quashes Income Tax Act notice; Explanations in Notifications deemed ultra vires The court quashed the notice issued under Section 148 of the Income Tax Act, 1961, dated 25.04.2021, following a similar judgment by a Division Bench. The ...
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Court quashes Income Tax Act notice; Explanations in Notifications deemed ultra vires
The court quashed the notice issued under Section 148 of the Income Tax Act, 1961, dated 25.04.2021, following a similar judgment by a Division Bench. The Explanations in Notifications No. 20/2021 and No. 38/2021 were found ultra vires, granting relief to the petitioner. No further orders were issued, allowing respondents to act within the law. The petitioner was given liberty to seek remedies if needed. The writ petition was allowed, and the pending application was disposed of accordingly.
Issues: 1. Quashing of notice issued under Section 148 of the Income Tax Act, 1961 2. Legality of Explanations in Notifications No. 20/2021 and No. 38/2021
Analysis: 1. The petitioner sought relief through a writ petition to quash an impugned notice dated 25.04.2021 issued under Section 148 of the Income Tax Act, 1961. The court, after hearing counsels for both parties and considering the facts, noted that the issue raised was similar to a judgment dated 15.12.2021 by a Division Bench of the same court. The respondents did not dispute this position. The court examined the judgment referred to by the petitioner's counsel and agreed that it covered the issue at hand. Consequently, the court quashed the impugned notice dated 25.04.2021.
2. Additionally, the court addressed the legality of Explanations in Notifications No. 20/2021 dated 31.03.2021 and No. 38/2021 dated 27.04.2021. Referring to the Division Bench's judgment, the court found that the Explanations mentioned in the notifications were declared as ultra vires. As a result, the relief sought by the petitioner in this regard was considered addressed, and no further orders were deemed necessary. The court clarified that if the law allowed the respondents to take further steps in the matter, they were permitted to do so. The petitioner was also granted the liberty to seek remedies available in law if any future steps by the respondents caused grievance or a new cause of action. Ultimately, the writ petition was allowed, and the pending application was disposed of accordingly.
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