Manisha Khatuja vs Union Of India

Heard Mr. Raj Shengale, Mr. Siddharth Dubey, Mr. Abhyuday Singh, Mr. Chetan Singh Chauhan, Mr. Raja Sharma, Mr. Siddharth Shukla, Mr. Karan Kumar Baharani, Mr. Vaibhav Shukla, Ms. Astha Shulka and Mr. Chandradeep Prasad, learned counsel for the appellant/petitioner. Also heard Ms. Anmol Sharma, learned Central Government counsel, appearing for Union of India as well as Mr. Amit Chaudhari, Ms. Naushina Afrin Ali and Mr. Ajay Kumrani, learned counsel, appearing for the Income Tax Department.

An application is filed in Writ Appeal No. 277 of 2021 for preponement of hearing of Writ Appeal No. 277 of 2021 and other connected matters, which is registered as I.A. No. 2 of 2022.

These cases were directed to be listed on 11.07.2022 on the ground that an appeal against the order of the Allahabad High Court on a similar issue was reserved for judgment by the Hon’ble Supreme Court on 20.04.2022.

As the Hon’ble Supreme Court had decided the matter, namely, Union of India & Others v. Ashish Agarwal, reported in (2022) SCC Online SC 543, and as certain time-lines are indicated therein, I.A. No. 2 of 2022 was filed.

The Hon’ble Supreme Court disposed of the aforesaid case as follows:

“26. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgment and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:-

(i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show-cause notices within two weeks thereafter;

(ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a one-time measure vis-a-vis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts.

Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required;

(iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under Section 148A may issue notice under section 148 (as substituted);

(iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assesses and Revenue under the Finance Act, 2021 and in law shall continue to be available.

The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 1.04.2021 issued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending before various High Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge.

The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by various High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the aforesaid extent only.

All these appeals are accordingly partly allowed to the aforesaid extent.

In the facts of the case, there shall be no order as to costs.”

In view of the decision of the Hon’ble Supreme Court, no hearing is required and therefore, these batch of writ appeals/writ petitions are disposed of in terms of the judgment rendered in Union of India & Others v. Ashish Agarwal. I.A. No. 2 of 2022 is also disposed of.