Clipped from: https://taxguru.in/income-tax/sc-quashes-ay-15-16-income-tax-reassessment-notices-post-1st-april-2021.html
Deepak Steel And Power Limited Vs Central Board of Direct Taxes & Ors. (Supreme Court of India)
Supreme Court of India has nullified income tax reassessment notices issued to Deepak Steel And Power Limited for Assessment Year (AY) 2015-16. The notices, dated June 25, 2021, were challenged after the Orissa High Court declined to entertain writ petitions against them, suggesting the petitioner raise grounds at a later stage, referencing previous High Court orders.
The Supreme Court, hearing the company’s appeals against the High Court’s decision, noted a crucial concession made by the Revenue (Income Tax Department) in a recent three-judge bench decision of the Supreme Court itself, Union of India and Ors. v. Rajeev Bansal (2024 SCC OnLine SC 2693). In the Rajeev Bansal case, the Revenue had conceded that for Assessment Year 2015-2016, all reassessment notices issued on or after April 1, 2021, were invalid as they would not fall within the completion period prescribed by the relevant relaxation laws enacted during the pandemic.
Given that the notices in Deepak Steel And Power Limited’s case were also for AY 2015-16 and were issued after April 1, 2021, the Supreme Court found that the Revenue’s own admitted position in the Rajeev Bansal judgment was directly applicable. Consequently, the Supreme Court allowed the appeals, quashed and set aside the impugned notices dated June 25, 2021, bringing an end to the reassessment proceedings initiated by those specific notices.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. Leave granted.
2. These appeals arise from the order passed by the High Court of Orissa at Cuttack in Writ Petition (C) Nos. 2446 of 2023, 2543 of 2023 dated 1.2.2023 and 2544 of 2023 dated 10.02.2023 respectively by which the High Court disposed of the original writ petitions in the following terms:-
“1. The memo of appearance filed by Mr. S. S. Mohapatra, learned Senior Standing Counsel for Revenue Department on behalf of Opposite Parties is taken on record.
2. In view of the order passed by this Court on 1st December, 2022 in a batch of writ petitions of which W.P.(C) No.9191 of 2022 (Kailash Kedia v. Income Tax Officer) was a lead matter and the subsequent order dated 10th January, 2023 passed in W.P.(C) No.36314 of 2022 (Shiv Mettalicks Pvt. Ltd., Rourkela v. Principal Commissioner of Income Tax, Sambalpur), the Court declines to entertain the present writ petition, but leaves it open to the Petitioner to raise all grounds available to the Petitioner in accordance with law including the grounds urged in the present petition at the appropriate stage as explained by the Court in those orders.
3. The writ petition is disposed of in the above terms.”
3. We heard Mr. Saswat Kumar Acharya, the learned counsel appearing for the appellants(assessee) and Mr. Chandrashekhar, the learned counsel appearing for the revenue.
4. The learned counsel appearing for the revenue with his usual fairness invited the attention of this Court to a three judge bench decision of this Court in Union of India and Ors. v. Rajeev Bansal, reported in 2024 SCC OnLine SC 2693, more particularly, paragraph 19(f) which reads thus:-
“19. (f) The Revenue concedes that for the assessment year 20152016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.”
5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016, all notices issued on or after 1st April, 2021 will have to be dropped as they would not fall for completion during the period prescribed under the taxation and other laws (Relaxation and Amendment of certain Provisions Act, 2020). Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.6.2021.
6. In view of the aforesaid, in such circumstances referred to above the original writ petition nos.2446 of 2023, 2543 of 2023 and 2544 of 2023 respectively filed before the High Court of Orissa at cuttack stands allowed.
7. The impugned notice therein stands quashed and set aside.
8. The relief in terms of prayer (a) is granted.
9. The appeals stand disposed of in the above terms.
10. Pending application(s), if any, stand disposed of.
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1. Leave granted.
2. The appeals are disposed of in terms of the signed order. The operative part of the order is as under:-
“6. In view of the aforesaid, in such circumstances referred to above the original writ petition nos.2446 of 2023, 2543 of 2023 and 2544 of 2023 respectively filed before the High Court of Orissa at cuttack stands allowed.
7. The impugned notice therein stands quashed and set aside.
8. The relief in terms of prayer (a) is granted.
9. The appeals stand disposed of in the above terms.”
3. Pending application(s), if any, stand disposed of.
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