[Income Tax] Allahabad HC To Examine Whether Proceedings U/S 148A(b) Initiated Prior To 01.09.2024 Would Be Saved After Enforcement Of The Finance (No.2) Act, 2024

The Lucknow Bench of the Allahabad High Court has sought state response on the question of maintainability of proceedings under Section 148A(b) of the Income Tax Act initiated prior to 01.09.2024, if at all, would be saved after enforcement of the Finance (No.2) Act, 2024 w.e.f. 01.09.2024 especially in view of sub-Section- (4) of Section 152 of the Income Tax Act, 1961 which has been inserted by the said Finance (No.2) Act, 2024. Section 148A has been amended by the Act of 2024. Section 152 has been amended to add 2 new sub-sections. Newly inserted Sub-section (4) of Section 152 provides that where notice under Section 148 (other than Section 148(3)) and order under Section 148A(d) has been issued prior to 01.09.2024, the same shall be governed as per the provisions of sections 147 to 151, as they stood immediately before the commencement of the Finance (No. 2) Act, 2024. Petitioner received a notice dated 27.03.2024 under Section 148A(b) of the Income Tax Act. Subsequently, an order under Section 148A(d) was passed on 20.04.2024 rejecting the objections of the petitioner and the notice under Section 148 dated 20.04.2024 was issued. Thereafter, in May, 2024 petitioner sought further documents and information. However, no response was received by him. Subsequently, petitioner approached the High Court and pursuant to the order of the writ court, documents were provided to the petitioner on 05.08.2024. On 09.08.2024, an identical show cause notice under Section 148A(b) was against issued to the petitioner and on 02.09.2024 orders were passed.Challenging the subsequent notices and order, petitioner pleaded that since the notice under Section 148A(b) was issued prior to 01.09.2024, the amendments to Sections 147 to 151 regarding reassessment proceedings will not apply to the proceedings related to the petitioner. Since there are certain difference in the old Section 148A and new Section 148A, petitioner argued that the new provisions will not apply. The bench of Justice Rajan Roy and Justice Brij Raj Singh had stayed the impugned proceedings granting time to the counsel for Revenue to seek instructions. The case was listed on 03.01.2025, however, has now been listed on 16.01.2025. Case Title: Ravish Rastogi v. Union Of India Thru. Secy. Ministry Of Finance New Delhi And 3 Others [WRIT TAX No. - 359 of 2024] Counsel for Petitioner: Aakash Prasad, Himanshu Singh Counsel for Respondent :- A.S.G.I.,Kushagra DikshitClick Here To Read/Download The Order

[Income Tax] Allahabad HC To Examine Whether Proceedings U/S 148A(b) Initiated Prior To 01.09.2024 Would Be Saved After Enforcement Of The Finance (No.2) Act, 2024

Upasna Agrawal

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