Calcutta HC Issues Notice On Plea Challenging The Validity of The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act, 2020

The Calcutta High Court on Thursday issued notice on a plea challenging the constitutional validity of the provisions of The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act, 2020. In the concerned plea, the petitioners have also challenged two notices dated May 29, 2021 and June 18, 2021 served to them by the Assessing Officer pertaining to the assessment years 2014-15 and 2015-16 respectively. The petitioners contended that before issuing such notices under Section 148 of the Income Tax Act, 1961 (Act), mandatory provisions of Section 148A of the Act have not been complied with.

Taking cognisance of the non-compliance, Justice Md. Nizamuddin observed,

"In the meanwhile, respondents are restrained from proceeding any further on the basis of the aforesaid impugned notices dated 29th May, 2021 and 18th June, 2021 being Annexures 'P-4' and 'P-5' to the writ petition."

Justice Nizamuddin placed reliance on a number of judgements of the Bombay High Court such as Armada D1 Pte. Ltd. v. The Deputy Commissioner of Income Tax & Ors, Tata Communications Transformation Services Limited v. Assistant Commissioner of Income Tax Mumbai & Ors and Sahil International v. Assistant Commissioner of Income Tax, Circle-19(3) & Ors wherein the Court had stayed the impugned notices under Section 148 of the Income Tax Act, 1961 for non-compliance of the provisions of Section 148A of the Act.

Accordingly, the Court stayed the notices served to the petitioners and directed the respondents to file their counter-affidavit within 6 weeks from the passing of this order. The petitioners were asked to file a reply if any within 2 weeks thereafter.

The matter has been listed for final hearing on September 9.

Case Title: Bagaria Properties and Investments Private Ltd. v. Union of India

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