Point of Law: Income Tax - Issuance of notice - Power to issue notice under Section 148 which was prior to the amendment was also saved and the time was extended. In a result, the notice issued saved.

ORDER :

1. Challenge in this petition is to the notice dated 30.06.2021 (Annexure P-1) issued under Section 148 of the Income Tax Act, 1961.

2. Learned counsel for the petitioner would submit that the petitioner has filed the income tax return for the Assessment Year 2013-14 and Financial Year 2012-13. Subsequent thereto on the basis of some information available initially a scrutiny was done however no concealment was found but again a notice under Section 148 of the Income Tax Act, 1961 has been issued. It is submitted that on the date i.e. on 30.06.2021 when the notice under Section 148 of the Income Tax Act (hereinafter referred to as “Act of 1961”) is issued, the power to issue the notice was preceded with a new provision of law and thereby Section 148 is to read with Section 148-A of the Income Tax Act, 1961. He would submit that as per the amended Finance Act, 2021, which was published in the Gazette on 28th March, 2021, Section 2 to 88 was notified to come into force on 1st day of April 2021 and accordingly the new Section 148A was inserted which prescribed that before issuing the notice under Section 148 of the Income Tax Act, the Assessing Officer was bound to conduct an enquiry giving an opportunity of hearing to the assessee with the prior approval of specified authority and show cause notice in detail was necessary specifying particular date for hearing. He would submit that since the operation of Section 148A came into being on 01st April, 2021, as such, the notice issued to the petitioner on 30.06.2021 under Section 148 of the Income Tax Act, without following the procedure under Section 148A without giving an opportunity of hearing would be illegal and contrary to the provisions of Section 148A and it cannot be sustained. It is further submitted that the respondents though have placed reliance on certain notification of Ministry of Finance but when the law has been enacted by the Parliament then in such case the notification issued by the Ministry of Finance would not over ride even to extend the period of operation of section of the old Act of Section 148 of the Income Tax Act. It is stated Section 148A came in between which requires certain obligation to be performed by the Assessing Officer, therefore without giving any opportunity of hearing the notice under Section 148 of the Act, 1961 would be alleged. He therefore submits that the impugned notice is illegal and is liable to be quashed.

3. Per contra, learned counsel for the respondents would submit that because of pandemic and lock down of all activities including the normal working of office, lot of people could not file their return and submit the necessary papers with the department in respect of their income tax. As such, the Ministry of Finance in exercise of power under the Finance Act issued the notification whereby the application of old provisions of Section 148 of the Income Tax Act was extended initially uptill 30th April, 2021 and thereafter was further extended uptill 30th day of June, 2021. He would submit therefore the notice issued by Annexure P-1 dated 30.06.2021 would be within its ambit of the power of department in the extended time of its operation till 30.06.2021. Consequently, the notice under Section 148 of the Income Tax Act is completely valid and legal.

4. Perused the documents. The notice under Section 148 of the Income Tax Act was issued for Assessment Year of 2013-14. The notice was issued on 30.06.2021. The grievance of the petitioner that the notice of like nature could have been issued till the cut off date 30.03.2021 as subsequent thereto the new Section 148A intervened before issuance of notice directly under Section 148 of the Income Tax Act. The Finance Act, 2021 was notified on 28th March, 2021 which purports that Section 2 to 88 shall come into force on the 1st day of April, 2021 and Section 108 to 123 shall come into force on such date Central Government notifies in official Gazette to appoint. The relevant part wherei