Reassessment notices issued under the new Income Tax regime pursuant to Supreme Court directives in 'Ashish Agarwal' are considered valid and within time if the underlying notice issued under the old regime was initiated before the expiry of the statutory limitation period, provided procedural requirements are met.

Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus calling for the entire records of the second respondent, contained in DIN & Order No.ITBA/COM/F/17/2022-23/1044278578(1) dated 29.07.2022, for Assessment year 2015-2016 for PAN No.AADCG4669D and to quash the same as without jurisdiction, arbitrary, unjust, unlawful and consequently forbear the respondents or its superiors, subordinates, agents, from re-assessing the petitioner’s income for the Assessment Year 2015-16 under Section 147 of the Income Tax Act, 1961.

For Petitioner : Mr.P.Giridharan

For Respondents : Mr.B.Ramana Kumar

ORDER

In this Writ Petition, the Petitioner has challenged the Notice dated 29.07.2022 issued by the under Section 148 of the Act under the new regime and the Order dated 29.07.2022 passed by the respondents under Section 148A(d) of the Act under the regime for the Assessment Year 2015-2016.

2. The Petitioner was initially served with a notice dated 09.04.2021 under Section 148 of the Income Tax Act, 1961, pursuant to which the Petitioner filed a Return on 10.04.2021 admitting a taxable income of Rs.6,34,94,590/- as declared earlier under Section 139(5) of the Act.

3. Section 148 Notice dated 09.04.2021 which was issued under the old regime culminated in proceedings under the amended regime under the Income Tax Act, 1961 as in force with effect from 01.04.2021.

4. Relevant dates for the present case are as follows:-

5. The learned counsel for the Petitioner placed reliance on the replies filed by the Petitioner on 02.06.2022 and 20.07.2022 to the Notice dated 23.05.2022 issued under Section 148A(b) of the Act, which relies on the order dated 31.05.2021 passed by the Deputy Commissioner of State Tax Appeal - VI, Vadodara.

6. It is further submitted by the learned counsel for the Petitioner that although the said order pertain to the validity of the Input Tax Credit claimed by the Petitioner under the provisions of the Gujarat Value Added Tax Act, 2003 on purchases made from M/s Basant MArketing Private Limited, it directly relates to the sale/purchase transactions amounting to Rs.8,11,35,877/- which forms the substantive issue of the present reassessment proceedings.

7. It is submitted by the learned counsel for the Petitioner that though the Petitioner had furnished a copy of the aforesaid order, the Respondent overlooked the same and has concluded that the order dated 31.05.2021 passed by the Deputy Commissioner of State Tax Appeal - VI, Vadodara was still under scrutiny and that the genuineness of the transactions was doubtful.

8. It is therefore submitted that officers acting under their respective enactments are expected to take note of orders passed by their counterparts, unless fraud is alleged. It is further submitted that the order dated 31.05.2021 passed by the Deputy Commissioner of State Tax Appeal - VI, Vadodara clearly recognises that Input Tax Credit was available to the Petitioner on the purchases made from M/s Basant Marke