High Court Ruling on Income Tax Notices Post Amendment: Apex Court Modifies Decision

The High Court addressed challenges to notices issued under the un-amended section 148 of the Income Tax Act, 1961 after 01.04.2021. The Apex Court's judgment in Civil Appeal No. 3005/2022 modified the High Court decisions, deeming the notices to have been issued under the amended section 148A. Assessees were allowed to reply within a specified timeframe, and the Revenue was directed to provide information promptly. The Apex Court's order aimed to streamline procedures and govern similar cases nationwide, leading to the disposal of pending writ petitions challenging such notices.

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Issues:
Challenge to notices issued under un-amended section 148 of the Income Tax Act, 1961 after 01.04.2021.

Analysis:
The High Court considered writ petitions challenging notices under the un-amended section 148 of the Income Tax Act, 1961 issued after 01.04.2021. The Court referred to an interim order from a previous case and restrained the Revenue from further action based on the impugned notices. The Apex Court's judgment in Civil Appeal No. 3005/2022 addressed approximately 90,000 reassessment notices issued post-01.04.2021. The Apex Court modified the High Court judgments, deeming the notices to have been issued under the amended section 148A and allowing assessees to reply within a specified timeframe. The Apex Court's directions applied nationwide and to pending cases challenging similar notices.

The Revenue was directed to provide information to assessees within thirty days for them to respond within two weeks. The Apex Court dispensed with the requirement of prior approval for conducting any inquiry as a one-time measure. The assessing officers were instructed to pass orders under section 148A(d) and issue notices accordingly. Assessees retained all defenses available under the IT Act and the Finance Act, 2021. The Apex Court's order aimed to avoid multiple appeals and govern all similar cases across High Courts.

The High Court acknowledged the Apex Court's judgment and its applicability to pending writ petitions challenging similar notices issued post-01.04.2021. Consequently, the Court disposed of the writ petitions as nothing remained to be adjudicated upon. The interim orders were vacated, and all writ petitions were accordingly disposed of, including the related application.

In conclusion, the High Court addressed the challenge to notices issued under the un-amended section 148 of the Income Tax Act, 1961 after 01.04.2021. The Apex Court's judgment modified the High Court decisions, providing a framework for addressing the issued notices. The High Court, in line with the Apex Court's directions, disposed of the writ petitions as the challenge was no longer relevant post the Apex Court's decision.

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