Second notice under Section 148A(b) is invalid when an initial notice under Section 148 has already been served; Supreme Court directions pertain to a different timeframe and do not apply.

JUDGMENT

Manmohan, J.

C.M.No.42110/2022

Exemption allowed, subject to all just exceptions.

Accordingly, the application stands disposed of.

W.P.(C) No.13781/2022 & C.M.No.42109/2022

1. Present writ petition has been filed challenging the show cause notice dated 2nd June, 2022 issued under Section 148A(b) of the Income Tax Act, 1961 [`the Act'] as well as the order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act, both dated 28th July, 2022 for the Assessment Year 2017-18.

2. Learned counsel for the Petitioner states that pursuant to the directions of the Supreme Court in Union of India vs. Ashish Agarwal, 2022 SCC OnLine SC 543, the Petitioner was issued a letter dated 2nd June, 2022 under Section 148A(b) of the Act alleging that the Petitioner is a beneficiary of accommodation entries provided by the entities controlled by Mr.Ashok Kumar Gupta and has booked non-genuine bogus sales in their books of accounts to the tune of Rs.3,02,00,636/-. He states that the Petitioner had filed a reply dated 4th June, 2022, wherein it was submitted that the impugned show cause notice dated 2nd June, 2022 under Section 148A(b) of the Act had been wrongly issued to the Petitioner as the initial notice under the unamended Section 148 of the Act was issued to the Petitioner on 31st March, 2021 and served vide email on the same date. He states that the Petitioner had duly participated in the re-assessment proceedings initiated vide notice dated 31st March, 2021 issued under Section 148 of the Act by filing its return of income and replying to all the notices issued under Section 142(1) of the Act. He states that the Respondent failed to pass the re-assessment order within the prescribed time limit that ended on 31st March, 2022. He further states that the Respondent, without taking into consideration the fact that the limitation for completing the re-assessment proceedings pursuant to the notice issued under Section 148 of the Act had already elapsed subsequently issued the impugned show cause notice dated 2nd June, 2022 under Section 148A(b) of the Act.

3. Mr.Abhishek Maratha, learned senior standing counsel for the Respondent-Revenue, on the last date of hearing had handed over a copy of letter dated 04th October, 2022 written to him by the Income Tax Officer, Ward-47(1), New Delhi. The said letter is reproduced hereinbelow:

"Kindly refer to the e-mail dated 29.09.2022 received from Sh. Abhishek Maratha, Sr. Standing Counsel in the case of Nagesh Trading Co. for A.Y. 2017-18 wherein he has required to advise the suitable instructions. The pointwise reply is as under:

1. The assessment proceedings initiated vide notice u/s 148 of the Act after 31.03.2021as per the old regime were quashed by the Hon'ble Delhi High Court vide W.P.(C)520/2022 & CM No.1499/2022 dated January 11, 2022 and the assessee Nagesh Trading Co. was appearing as a petitioner at Sr. No. 76 of the said judgment. In view of the fact, the Hon'ble Jurisdictional High Court had allowed the writ petition in the case of the assessee, hence on the bonafide belief the assessment proceedings that were initiated on 31.03.2021 but the date of service of notice was not ascertainable, were not concluded by the Assessing Officer on 31.03.2022 presuming them to have become void ab-initio in assessee's case since the Hon'ble High Court had decided in his favour.

2. As discussed above, the re-assessment proceedings under the new regime were initiated once again, as the status of date of service of notice i.e. date and time stamp of mail delivery was not appearing on ITBA Portal in the given case. A screenshot of same is enclosed for ready reference. Therefore, t