[Case Analysis] Union of India vs Ashish Agarwal | Income Escaping Assessment

In brief, the decision of the Hon’ble Supreme Court in Union of India vs Ashish Agarwal [2022] 138 taxmann.com 64 (SC) dated [04-05-2022] was as under:

1. 1. The Apex Court affirmed the view of various High Courts that notice under section 148 under the old law could not be issued after 1-4-2021, i.e., the date when the new law of re-assessment came into force
   2. The notice issued under section 148 under the old law during the period between 1-4-2021 to 30-6-2021 shall be deemed to be notice issued under section 148A(b) under the new law
   3. The Assessing Officer shall provide to the assessee the reasons recorded and other material in his possession, within one month, which were the basis for recording the reasons and issue of notice under section 148 under the old law
   4. After receiving the material/reasons, the assessee shall furnish within 15 days the objections/reply to such reasons
   5. After receipt of the objections, the Assessing Officer shall dispose of the same by passing an order under section 148A(d) after holding whether it is a fit case to issue a notice under section 148 or not
   6. Where it is held that it is not a fit case to issue a notice under section 148, the assessee shall be intimated accordingly
   7. Where it is held that it is a fit case to issue a notice under section 148, such notice shall be issued along with the order under section 148A(d)
   8. All the defences and the rights available to the assessee under section 149(1) shall be available in respect of these proceedings
   9. The above judgment will be applicable in respect of the cases, whether pending before Apex Court or not, where a notice under section 148 under old law has been issued during the period between 1-4-2021 to 30-6-2021

Statutory References

Circulars and Notifications: Notification No. 20/2021, dated 31-3-2021¹ and Notification No. 38/2021, dated 27-4-2021

 Cases Referred To

1. 1. Bpip Infra (P.) Ltd. v. ITO [2021] 133 taxmann.com 48/[2022] 284 Taxman 635/440 ITR 300 (Raj.) (para 2)
   2. Mon Mohan Kohli v. Asstt. CIT [2021] 133 taxmann.com 166/[2022] 441 ITR 207 (Delhi) (para 2)
   3. Bagaria Properties and Investment (P.) Ltd. v. Union of India [2022] 134 taxmann.com 196/441 ITR 359(para 2)
   4. Manoj Jain v. Union of India [2022] 134 taxmann.com 173 (Cal.) (para 2)
   5. Sudesh Taneja v. ITO [2022] 135 taxmann.com 5/442 ITR 289 (Raj.) (para 2)
   6. Vellore Institute of Technology v. CBDT [2022] 135 taxmann.com 285/442 ITR 233 (Mad.) (para 2)
   7. Tata Communications Transformation Services v. Asstt. CIT [2022] 137 taxmann.com 2 (Bom.) (para 2)
   8. GKN Driveshafts (India) Ltd. v. ITO [2002]125 Taxman 963/[2003] 259 ITR 19 (SC) (para 5)

¹ Other Cases which refer to this Notification

1. 1. [2022] 136 taxmann.com 44 (Gujarat)[10-12-2021]| Shilp Associates vs. Union of India
   2. [2021] 133 taxmann.com 14 (Chhattisgarh)[31-08-2021]| Ashok Kumar Agrawal vs. Union of India
   3. [2021] 133 taxmann.com 166 (Delhi)[15-12-2021]| Mon Mohan Kohli vs. Assistant Commissioner of Income-tax
   4. [2021] 128 taxmann.com 161 (Bombay)[09-07-2021]| Sahil International vs. Assistant Commissioner of Income-tax, Circle-19(3)
   5. [2022] 137 taxmann.com 376 (Gujarat)[24-12-2021]| Narayan Dyestuff (P.) Ltd. vs. Income-tax Officer
   6. [2021] 133 taxmann.com 116 (Chhattisgarh)[15-09-2021]| Shri Labtund Infrastructure (P.) Ltd. vs. Principal Commissioner of Income-tax
   7. [2021] 133 taxmann.com 48 (Rajasthan)[25-11-2021]| Bpip Infra (P.) Ltd. vs. Income-tax Officer, Ward 4(1), Jaipur
   8. [2021] 130 taxmann.com 154 (Chhattisgarh)[02-09-2021]| Guruteg Bahadur Rice Mill vs. Assistant Commissioner of Income-tax, Central Circle-1(1)
   9. [2022] 135 taxmann.com 168 (Gujarat)[24-12-2021]| Bharti Hiren Uttamchandani vs. Union of India
   10. [2021] 128 taxmann.com 247 (Bombay)[05-07-2021]| Tata Communications Transformation Services Ltd. vs. Assistant Commissioner of Income-tax