In an interim order, the Bombay High Court on Friday stayed the operation of notices issued by an income tax commissioner seeking to reopen an old assessment.
A vacation bench of Justices Shahrukh Kathawalla and Milind Jadhav was urgently moved by one Brij Mohan Jindel challenging a notice issued by the assessment officer in June this year, seeking to reopen the assessment for the year 2013-2014.
Jindel in his petition challenged the circulars by which the Income Tax Act has been amended and certain time limits prescribed under the Act have been extended.
According to the plea, the extension of time limit granted under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 is ultra vires and the authorities cannot unilaterally extend the time period for issuing reopening notices under Section 148 of the Act.
The bench, while admitting the petition, noted that several petitions have been filed on this very issue. It further noted that a directive has already been issued to the Attorney General of India to make submissions in one of the petitions.
The judges, accordingly, stayed the notices issued against Jindel and ordered the tax authorities not to take any coercive action against him.
