Notice u/s 148 of Income Tax Act Quashed for 2013-14 Assessment Year; Proceedings Deemed Legally Untenable.

The Orissa HC quashed the notice issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2013-14, dated 28th March 2021. The Court relied on the SC's decision in Union of India v. Ashish Agarwal and other relevant precedents, determining the notice and subsequent proceedings as legally untenable.

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Issues: Quashing of notice under Section 148 of the Income Tax Act, 1961

In this judgment by the Orissa High Court, the main issue revolved around the quashing of a notice issued under Section 148 of the Income Tax Act, 1961. The Opposite Parties-Department cited Section 3(1) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, highlighting the Petitioner's alternative remedy of challenging the assessment and appellate authority's order.

The Court referred to the Supreme Court judgment in Union of India v. Ashish Agarwal 444 ITR 1 (SC) as a decisive precedent. The Court had previously acknowledged this judgment in its order dated 6th May, 2022, in a related case. Given that the assessment year was 2013-14 and the impugned notice was issued on 28th March, 2021, the Court relied on the orders in Nutan Bhusan Jena and M/s. Ambika Iron and Steel Pvt. Ltd. cases, along with the Supreme Court's decision in Union of India v. Ashish Agarwal, to quash the notice and all subsequent proceedings.

Overall, the judgment focused on the legality of the notice issued under Section 148 of the Income Tax Act, 1961, considering relevant legal provisions and precedents to determine the quashing of the notice and related proceedings.

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