2024 (5) TMI 1631 - HC - Income Tax

Section 148 notices for AY 2015-16 declared invalid; reassessment, demand and penalty orders set aside as void

Verjinia Foods Limited Versus The Income Tax Officer, Ward 1 (1), Kalyan & Ors.

The HC held that notices issued under section 148 for AY 2015-16 were invalid where they relied on provisions that had ceased to exist, following earlier ... Reopening of assessment under old regime - scope of new regime - scope of TOLA - as argued notice has been issued on the basis of the provisions which have ceased to exist and are no longer in the statute - Whether TOLA is applicable for Assessment Year 2015-2016 and whether any notice issued u/s 148 of the Act after 31st March 2021 will travel back to the original date? - HELD THAT:- The issue in these petitions will be covered by the recent judgment of this Court in Godrej Industries Ltd.[2024 (3) TMI 109 - BOMBAY HIGH COURT] so also by the judgment of this Court in Hexaware Technologies Limited [2024 (5) TMI 302 - BOMBAY HIGH COURT] Therefore, the notice issued u/s 148 of the Income Tax Act, 1961 is quashed and set aside. In case any re-assessment order is passed, the same also will stand quashed. So also, consequential demand notices or penalty notices will also stand quashed and set aside. Petitions held to be covered by this Court's decisions in Godrej Industries Ltd. v. Assistant Commissioner of Income Tax and Hexaware Technologies Limited v. Assistant Commissioner of Income Tax. Consequently, the notice dated 6th April 2024 issued under Section 148 of the Income Tax Act, 1961 is 'quashed and set aside.' Any re-assessment order passed pursuant thereto 'will stand quashed.' Similarly, 'consequential demand notices or penalty notices will also stand quashed and set aside.' Petition disposed accordingly. Any contention not covered by the Godrej Industries Ltd. and Hexaware Technologies decisions is kept open to be raised later, if the need arises.