[Breaking] Income Tax Dept filed SLP with SC against Allahabad HC order quashing notices us 148

Income Tax Department has filed Special Leave Petition [SLP] with Supreme Court against Allahabad High Court order quashing notices u/s 148 of Income Tax Act.

The Hon ‘ble High Court held that the substituted provisions of Section 148 which came into effect from April 1, 2021, vide Finance Act, 2021, would apply to the Notifications in absence of any saving clause or reassessment proceedings initiated prior to such date.

It further stated that though the Relaxation Act, 2020 was prior in time, it only meant to extend timelines and thus, all references to the issuance of notice under the. Relaxation Act, 2020 must be read as references to its substituted provisions only, where proceedings could be initiated after April 1, 2021. Thus, it held that there was no conflict between Relaxation Act, 2020 and Finance Act, 2021.

It is submitted that the Hon’ble High Court adopted an interpretation that is contradictory to a plain and literal construction of Section 3( 1) of TOLA. It is submitted that Section 3(1) provides for relaxation/extension of time-limits for completion/compliance of actions that could not be completed/complied with within the statutory deadline due to the COVID-19 pandemic

Click here to Download the SLP