Gujarat High Court Quashes Income Tax Notice in Favor of Shah Alloys Limited

Strategic Insights -

The Gujarat High Court, in its judgment dated 14/02/2023, passed in Special Civil Application No. 19177 of 2022, has quashed the income tax notice issued to Shah Alloys Limited by the Assistant Commissioner of Income Tax, Circle 4(1)(1), Ahmedabad. The court's decision was based on the principles laid down by the Hon'ble Supreme Court in the case of Union of India vs. Ashish Agarwal (2022) 138 Taxmann Com and the decisions of the Gujarat High Court in the cases of Keenara Industries Private Limited vs. The Income Tax Officer, Surat and Special Civil Application No.17321 of 2022 dated 7.2.2023.

The court considered the ratio laid down by the Hon'ble Supreme Court and the Gujarat High Court, and, after hearing the advocates for the respective parties, allowed the petition by quashing and setting aside the income tax notice issued under Section 148 dated 30.06.2021 as well as the orders dated 30.07.2022 and 31.07.2022 passed by the respondent authority.

Key Takeaways:

  • The Gujarat High Court has quashed the income tax notice issued to Shah Alloys Limited under Section 148 dated 30.06.2021 as well as the orders dated 30.07.2022 and 31.07.2022 passed by the respondent authority.
  • The decision was based on the principles laid down by the Hon'ble Supreme Court in the case of Union of India vs. Ashish Agarwal (2022) 138 Taxmann Com and the decisions of the Gujarat High Court in the cases of Keenara Industries Private Limited vs. The Income Tax Officer, Surat and Special Civil Application No.17321 of 2022 dated 7.2.2023.
  • The court considered the ratio laid down by the Hon'ble Supreme Court and the Gujarat High Court and allowed the petition by quashing the impugned notice and orders.
  • Mr. Soparkar, learned advocate for the petitioner, had relied upon the decision of this Court rendered in Special Civil Application No.2049 of 2023 dated 08.02.2023.
  • Mr. Raval, learned advocate for the respondent, had opposed the present petition.
  • The court made the rule absolute to the aforesaid extent.

Statistics:

  • The income tax notice issued under Section 148 dated 30.06.2021 has been quashed and set aside.
  • The orders dated 30.07.2022 and 31.07.2022 passed by the respondent authority have been quashed and set aside.
  • The Gujarat High Court has considered the ratio laid down by the Hon'ble Supreme Court in the case of Union of India vs. Ashish Agarwal (2022) 138 Taxmann Com.
  • The court has also considered the decisions of the Gujarat High Court in the cases of Keenara Industries Private Limited vs. The Income Tax Officer, Surat and Special Civil Application No.17321 of 2022 dated 7.2.2023.

Sources:

  • Union of India vs. Ashish Agarwal (2022) 138 Taxmann Com
  • Keenara Industries Private Limited vs. The Income Tax Officer, Surat
  • Special Civil Application No.17321 of 2022 dated 7.2.2023
  • Special Civil Application No.2049 of 2023 dated 08.02.2023