Gujarat High Court
Gokul Refoils And Solvent Limited vs Union Of India on 12 October, 2021
Author: Sonia Gokani
Bench: Sonia Gokani, Rajendra M. Sareen
C/SCA/15394/2021 ORDER DATED: 12/10/2021
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 15394 of 2021
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GOKUL REFOILS AND SOLVENT LIMITED
Versus
UNION OF INDIA
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Appearance:
MS VAIBHAVI K PARIKH(3238) for the Petitioner(s) No. 1
for the Respondent(s) No. 1,2,3
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CORAM:HONOURABLE MS. JUSTICE SONIA GOKANI
and
HONOURABLE MR. JUSTICE RAJENDRA M. SAREEN
Date : 12/10/2021
ORAL ORDER
(PER : HONOURABLE MS. JUSTICE SONIA GOKANI)
1. The petitioner has preferred this petition before this Court under Article 226 of the Constitution of India challenging the constitutional validity and vires of the Explanation contained in Notification No.20/2021 dated 31 st March, 2021 as well as Notification No.38/2021 dated 27 th April, 2021, which extend, for the purpose of issuance of Notice under Section 148 of the Income Tax Act, 1961 ('the Act' hereinafter), the time limit specified in Section 149 or sanction under Section 151 of the Act from 31 st March, 2021 to 30th April, 2021 and from 30th April, 2021 to 30th June, 2021 respectively and further provide that provisions of Sections 148, 149 and 151 of the Act, as they stood as on 31 st March, Page 1 of 3 Downloaded on : Thu Oct 14 02:53:52 IST 2021 C/SCA/15394/2021 ORDER DATED: 12/10/2021 2021 before the commencement of the Finance Act, 2021 shall apply to the proceedings taken during this extended time limit. The petitioner also challenges the consequential notices dated 20.04.2021 and 06.05.2021 issued under Section 148 of the Act as existed and applicable as on 31.03.2021 seeking to reopen the Income Tax Assessment of the petitioner for the assessment years 2013-14, 2014-15, 2015-16 and 2016-17 by drawing power and authority from the aforesaid notifications.
2. The petitioner has further questioned the applicability of the provisions of sections 148 and 148A of the Income Tax Act, the new provisions which have been inserted by Finance Act 2021 with effect from 1st April, 2021.
3. According to the petitioner, the Financial Act has substituted the provision of section 147 with effect from 1 st April, 2021 and the time limit has been set to issue the notice under section 148 which is extended by Notification No.20 of 2021 and 38 of 2021, there cannot be two parallel provisions applicable simultaneously. The validity of the notice is challenged so also Notification No.20 of 21 issued by the CBDT by purportedly exercising the powers conferred by section 3(1) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Page 2 of 3 Downloaded on : Thu Oct 14 02:53:52 IST 2021
C/SCA/15394/2021 ORDER DATED: 12/10/2021
4. We have heard Ms. Parikh learned advocate for the petitioner. It is urged fervently that even the Revenue Authorities could not have extended the operation of repealed provision of section 148 beyond 31 st March, 2021 under the guise of a clarificatory explanation in the notifications.
5. Issue Notice to the respondents returnable on 25.10.2021. Pleadings be completed and office of learned Additional Solicitor General shall be served through e-mail. In addition to the regular mode of service, let the service be effected through speed post also at the cost of the petitioner. Direct service is permitted.
6. Ad-interim relief in terms of paragraph 7(d) till the returnable date.
7. To be tagged with Special Civil Applications No.12621 of 2021.
(SONIA GOKANI, J) (RAJENDRA M. SAREEN,J) Bhoomi Page 3 of 3 Downloaded on : Thu Oct 14 02:53:52 IST 2021