# Ashok Kumar Agarwal v. Union of India & Ors

- **Citation:** (2021) 10 ILRA 816
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2021-09-30
- **Case number:** Writ Tax No. 524 of 2021
- **Bench:** Naheed Ara Moonis, Saumitra Dayal Singh
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/ashok-kumar-agarwal-v-union-of-india-ors-46422
- **Pages:** 84

## Headnote

A. Tax Law - Enabling Act,1933 - Sections
3(1), 153 & 153B - Taxation and Other
Laws (Relaxation of Certain Provisions)
Ordinance, 2020 - Finance Act, 2021:
Section 2 to 88.

Absence of saving clause in case of
substitution of a legislative provision -
There can be no exception to the principle:
an Act of legislative Substitution is a
composite act. Thereby, the legislature
chooses to put in place another or, replace
an existing provision of law. It involves
simultaneous omission and re-enactment.
By its very nature, once a new provision has
been put in place of a pre-existing provision, the
earlier provision cannot survive, except for
things done or already undertaken to be done
or things expressly saved to be done. In
absence of any express saving clause and,
since no reassessment proceeding had
been
initiated
prior
to
the
Act
of
legislative Substitution, the second aspect
of the matter does not require any further
examination. (Para 64)

Therefore,
on
01.04.2021,
by
virtue
of
plain/unexcepted effect of Section 1(2)(a) of the
Finance Act, 2021, the provisions of Sections
147, 148, 149, 151 (as those provisions existed
upto 31.3.2021), stood substituted, alongwith a
new provision enacted by way of Section 148A
of that Act. In absence of any saving clause, to
10 All. Ashok Kumar Agarwal Vs. Union of India & Ors.
817
save the pre-existing (and now substituted)
provisions, the revenue authorities could only
initiate reassessment proceeding on or after
1.4.2021, in accordance with the substituted law
and not the pre-existing laws. (Para 65)

It is equally true that the Enabling Act that was
pre-existing, had been enforced prior to
enforcement of the Finance Act, 2021. In the
Enabling Act and the Finance Act, 2021,
there is absence, both of any express
provision in itself or to delegate the
function - to save applicability of the
provisions of Sections 147, 148, 149 or
151 of the Act, as they existed up to
31.3.2021. Plainly, the Enabling Act is an
enactment
to
extend
timelines
only.
Consequently, it flows from the above -
1.4.2021 onwards, all references to issuance of
notice contained in the Enabling Act must be
read as reference to the substituted provisions
only. Equally there is no difficulty in applying the
pre-existing provisions to pending proceedings.
Looked in that manner, the laws are
harmonized. (Para 66)

B.
Jurisdiction
-
A
reassessment
proceeding is not just another proceeding
emanating from a simple show-cause
notice. Both, under the pre-existing law as
also
under
the
law
enforced
from
1.4.2021, that proceeding must arise only
upon jurisdiction being validly assumed by
the assessing authority. Till such time
jurisdiction is validly assumed by assessing
authority - evidenced by issuance of the
jurisdictional notice u/s 148, no re-assessment
proceeding may ever be said to be pending
before
the
assessing
authority.
All
r

## Text

_Characters 0–39,965 of 273,567. This is a partial read: ask again with offset=39965 for what follows._

816 INDIAN LAW REPORTS ALLAHABAD SERIES
TRAN-1/TRAN-2, within two weeks of
receipt of such communication or allow
that petitioner opportunity to upload those
details, within a reasonable time.

74. We make it clear, the above
exercise would be a one-time affair and any
details thus submitted would not remain
open to any further or other revision by the
petitioners/"registered persons".

75. Since, we have noted the general
difficulty obtaining with all the "registered
persons"/taxpayers and have considered the
same to be generic in nature, we also make
this order applicable to all other "registered
persons"/taxpayers within the State of U.P.
(who are not before this Court), subject to
the
modification
that
such
nonpetitioners/"registered
persons"
may
approach their jurisdictional authority, as
above, within a period of eight weeks from
today. The further timelines provided by
this Court shall stand modified accordingly.

76. We also provide, subject to right
of appeal that otherwise exists with the
respondents (against this order), they shall
host the operative portion of this order on
their website and the GST portal to ensure
that the one-time/final resolution is made of
all disputes of this nature, in the State of
U.P. It will also avoid repeated and
continued litigation for years after the GST
regime has come into existence.

77. All writ petitions are thus
allowed. No order as to costs.
----------
(2021)10ILR A816
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 30.09.2021 and
08.10.2021

BEFORE
THE HON'BLE NAHEED ARA MOONIS, J.
THE HON'BLE SAUMITRA DAYAL SINGH, J.

Writ Tax No. 524 of 2021

Ashok Kumar Agarwal ...Petitioner
Versus
Union of India & Ors. ...Respondents

Counsel for the Petitioner:
Sri Suyash Agarwal, Sri Rakesh Ranjan
Agarwal (Senior Adv.)

Counsel for the Respondents:
Sri Gaurav Mahajan, Sri Ashish Agrawal, Sri
Gopal Verma, Sri Shashi Prakash Singh
(ASGI)

A. Tax Law - Enabling Act,1933 - Sections
3(1), 153 & 153B - Taxation and Other
Laws (Relaxation of Certain Provisions)
Ordinance, 2020 - Finance Act, 2021:
Section 2 to 88.

Absence of saving clause in case of
substitution of a legislative provision -
There can be no exception to the principle:
an Act of legislative Substitution is a
composite act. Thereby, the legislature
chooses to put in place another or, replace
an existing provision of law. It involves
simultaneous omission and re-enactment.
By its very nature, once a new provision has
been put in place of a pre-existing provision, the
earlier provision cannot survive, except for
things done or already undertaken to be done
or things expressly saved to be done. In
absence of any express saving clause and,
since no reassessment proceeding had
been
initiated
prior
to
the
Act
of
legislative Substitution, the second aspect
of the matter does not require any further
examination. (Para 64)

Therefore,
on
01.04.2021,
by
virtue
of
plain/unexcepted effect of Section 1(2)(a) of the
Finance Act, 2021, the provisions of Sections
147, 148, 149, 151 (as those provisions existed
upto 31.3.2021), stood substituted, alongwith a
new provision enacted by way of Section 148A
of that Act. In absence of any saving clause, to
10 All. Ashok Kumar Agarwal Vs. Union of India & Ors.
817
save the pre-existing (and now substituted)
provisions, the revenue authorities could only
initiate reassessment proceeding on or after
1.4.2021, in accordance with the substituted law
and not the pre-existing laws. (Para 65)

It is equally true that the Enabling Act that was
pre-existing, had been enforced prior to
enforcement of the Finance Act, 2021. In the
Enabling Act and the Finance Act, 2021,
there is absence, both of any express
provision in itself or to delegate the
function - to save applicability of the
provisions of Sections 147, 148, 149 or
151 of the Act, as they existed up to
31.3.2021. Plainly, the Enabling Act is an
enactment
to
extend
timelines
only.
Consequently, it flows from the above -
1.4.2021 onwards, all references to issuance of
notice contained in the Enabling Act must be
read as reference to the substituted provisions
only. Equally there is no difficulty in applying the
pre-existing provisions to pending proceedings.
Looked in that manner, the laws are
harmonized. (Para 66)

B.
Jurisdiction
-
A
reassessment
proceeding is not just another proceeding
emanating from a simple show-cause
notice. Both, under the pre-existing law as
also
under
the
law
enforced
from
1.4.2021, that proceeding must arise only
upon jurisdiction being validly assumed by
the assessing authority. Till such time
jurisdiction is validly assumed by assessing
authority - evidenced by issuance of the
jurisdictional notice u/s 148, no re-assessment
proceeding may ever be said to be pending
before
the
assessing
authority.
All
reassessment notices involved in this batch of writ
petitions had been issued after the enforcement
date 1.4.2021. As a fact, no jurisdiction had
been assumed by the assessing authority
against any of the petitioners, under the
unamended law. Hence, no time extension could
ever be made u/s 3(1) of the Enabling Act, read
with the Notifications issued thereunder. (Para
67)

C. Enabling Act: Section 3(1) - Section
3(1) of the Enabling Act does not speak of
saving any provision of law. It only speaks
of saving or protecting certain proceedings from
being hit by the rule of limitation. That provision
also does not speak of saving any proceeding
from any law that may be enacted by the
Parliament, in future. (Para 68)

Section 3(1) of the Enabling Act does not
itself speak of reassessment proceeding or
of Section 147 or Section 148 of the Act as
it existed prior to 1.4.2021. It only
provides a general relaxation of limitation
granted on account of general hardship
existing upon the spread of pandemic
COVID-19. After enforcement of the Finance
Act, 2021, it applies to the substituted
provisions and not the pre-existing provisions.
(Para 71)

Words and phrases - 'notwithstanding' -
Even otherwise the word 'notwithstanding'
creating the non obstante clause, does not
govern the entire scope of Section 3(1) of the
Enabling Act. It is confined to and may be
employed only with reference to the second part
of Section 3(1) of the Enabling Act i.e. to
protect proceedings already under way. There is
nothing in the language of that provision to
admit a wider or sweeping application to be
given to that clause - to serve a purpose not
contemplated under that provision and the
enactment, wherein it appears. (Para 69)

D. Colourable exercise of power - The
Enabling Act only protected certain proceedings
that may have become time barred on
20.3.2021,
upto
the
date
30.6.2021.
Correspondingly,
by
delegated
legislation
incorporated by the Central Government, it may
extend that time limit. That time limit alone
stood extended upto 30 June, 2021. Vide
Notification No. 3814 dated 17.9.2021, issued
u/s 3(1) of the Enabling Act, further extension
of time has been granted till 31.3.2022. In
absence of any specific delegation made, to
allow the delegate of the Parliament, to
indefinitely extend such limitation, would be to
allow the validity of an enacted law i.e. the
Finance Act, 2021 to be defeated by a purely
colourable exercise of power, by the delegate of
the Parliament. (Para 70)

Reference to reassessment proceedings w.r.t.
pre-existing and now substituted provisions of
Sections 147 and 148 of the Act has been
818 INDIAN LAW REPORTS ALLAHABAD SERIES
introduced only by the later Notifications issued
under the Act. Therefore, the validity of those
provisions is also required to be examined. The
provisions of Sections 147, 148, 148A, 149, 150
and
151
substituted
the
old/pre-existing
provisions of the Act w.e.f. 1.4.2021. In
absence
of
any
proceeding
of
reassessment having been initiated prior
to the date 1.4.2021, it is the amended
law alone that would apply. Central
Government or the CBDT could not have
issued the Notifications, plainly to over
reach the principal legislation. Unless
harmonized as above, those Notifications would
remain invalid. (Para 72)

E.
To
consider
legislation
on
the
touchstone
practicality
is
dangerous.
Practicality, if any, may lead to legislation. Once
the matter reaches Court, it is the legislation
and its language, and the interpretation offered
to that language as may primarily be decisive to
govern the outcome of the proceeding. To read
practicality into enacted law is dangerous. Also,
it would involve legislation by the Court, an idea
and exercise we carefully tread away from.
(Para 73)

F. The mischief rule has limited application
in the present case. Only in case of any
doubt existing as to which of the two
interpretations may apply or to clear a
doubt as to the true interpretation of a
provision, the Court may look at the
mischief rule to find the correct law.
However, where plain legislative action exists,
as in the present case (whereunder the
Parliament has substituted the old provisions
regarding reassessment with new provisions
w.e.f. 1.4.2021), the mischief rule has no
application. (Para 74)

There is no conflict in the application and
enforcement of the Enabling Act and the
Finance Act, 2021. Juxtaposed, if the Finance
Act, 2021 had not made the Substitution to
the reassessment procedure, the revenue
authorities would have been within their
rights to claim extension of time, under the
Enabling Act. However, upon that sweeping
amendment
made
the
Parliament,
by
necessary implication or implied force, it
limited the applicability of the Enabling Act
and the power to grant time extensions
thereunder,
to
only
such
reassessment
proceedings
as
had
been
initiated
till
31.3.2021.
Consequently,
the
impugned
Notifications have no applicability to the
reassessment
proceedings
initiated
from
1.4.2021 onwards. (Para 75)

Writ petitions allowed. (E-4)

Precedent followed:

1. GKN Driveshafts (India) Ltd. Vs Income-tax
Officer, (2003) 259 ITR 19 (SC) (Para 7)

2. Govt. of India & ors. Vs Indian Tobacco
Association, (2005) 7 SCC 396 (Para 19)

3. Gottumukkala Venkata Krishamraju Vs U.O.I.
& ors., (2019) 17 SCC 590 (Para 20)

4. PTC India Ltd. Vs Central Electricity
Regulatory Commissioner, (2010) 4 SCC 603
(Para 21)

5. C.B. Richards Ellis Mauritius Ltd. Vs Assistant
Director of Income-tax, (2012) 208 Taxman 322
(Delhi) (Para 22)

6. Kolhapur Canesugar Works Ltd. & anr. Vs
U.O.I. & ors., (2000) 2 SCC 536 (Para 23)

7. Assam Company Ltd. & anr. Vs St. of Assam
& ors., (2001) 248 ITR 567 (SC) (Para 25)

8. U.O.I. & ors. Vs S. Srinivasan, (2012) 7 SCC
683 (Para 27)

9. A.K. Roy Etc. Vs U.O.I. & anr., AIR 1982 SC
710 (Para 28)

10. Parle Biscuits (P) Ltd.Vs St. of Bihar & ors.,
(2005) 9 SCC 669 (Para 32)

11. Chairman and Managing Director, F.C.I. &
ors. Vs Jagdish Balaram Bahira & ors., (2017) 8
SCC 670 (Para 33)

12. Dilip Kumar Ghosh & ors. Vs Chairman &
ors., (2005) 7 SCC 567 (Para 33)

13. Syndicate Bank Vs Prabha D. Naik & anr.,
AIR 2001 SC 1968 (Para 40)
10 All. Ashok Kumar Agarwal Vs. Union of India & Ors.
819
14. A.B. Krishna & ors. Vs St. of Karnataka &
ors., AIR 1998 SC 1050 (Para 42)

15. State of M.P. Vs Kedia Leather & Liquor Ltd.
& ors. (2003) 7 SCC 389 (Para 44)

16. Gammon India Ltd. Vs Special Chief
Secretary & others, (2006) 3 SCC 354 (Para 45)

17. A.G. Varadarajulu & anr. Vs St.of T.N. &
ors., (1998) 4 SCC 231 (Para 49)

18. Memon Abdul Karim Haji Tayab, Central
Cutlery Stories, Veraval Vs Deputy CustodianGeneral, New Delhi & ors., AIR 1964 SC 1256
(Para 51)

19. U.O.I. & ors. Vs Exide Industries Ltd. & anr.,
(2020) 5 SCC 274 (Para 55)

Precedent distinguished:

1.
Ramesh
Kymal
Vs
Siemens
Gamesa
Renewable Power Pvt. Ltd., (2021) 3 SCC 224
(Para 62)

2. Palak Khatuja Vs U.O.I. & ors., decided on
23.08.2021, High Court of Chhattisgarh, W.P.
(T) No. 149 of 2021 (Para 28)

Present petitions challenge initiation of
re-assessment proceedings u/s 148 of the
Income Tax Act, 1961 (upon notices
issued after 01.04.2021), for different
assessment years.

(Delivered by Hon'ble Naheed Ara
Moonis, J.
&
Hon'ble Saumitra Dayal Singh, J.)

Heard Sri Rakesh Ranjan Agarwal,
learned Senior Advocate, assisted by Sri
Suyash Agarwal, Sri Shambhu Chopra,
learned Senior Advocate, assisted by Ms.
Mahima Jaiswal, Sri Abhinav Mehrotra, Sri
Akhilesh Kumar along with Sri Ashish
Bansal, Sri Divyanshu Agarwal along with
Sri Ankit Saran, Sri Deepak Kapoor along
with Sri Shubham Agarwal, Sri V.K.
Sabarwal and Shri R.B. Gupta along with
Sri Rishi Raj Kapoor, Sri Shakeel Ahmad,
Sri Parv Agarwal, Sri Salil Kapoor along
with Sri Anuj Srivastava & Ms Soumya
Singh alongwith Sri Satya Vrat Mehrotra,
Sri Ankur Agarwal, Sri Krishna Deo Vyas,
Sri Ashok Shankar Bhatnagar & Sri
Harshul Bhatnagar, Sri Pranchal Agarwal,
Sri V.K. Sabharwal, Sri R.B. Gupta, Ms.
Shalini Goel and Ms. Rupal Agarwal,
learned counsel for the petitioners; Sri
Shashi Prakash Singh, learned Additional
Solicitor General of India assisted by Sri
Gopal Verma, Sri Dinesh Kumar Mishra,
Sri Gaya Prasad Singh, Sri Sudarshan
Singh, Sri Santosh Kumar Singh Paliwal,
Sri Ajai Singh, Sri Gaurav Kumar Chand
and Sri Krishna Agarwal, learned counsel
appearing for the Union of India; Sri
Gaurav Mahajan, Sri Praveen Kumar, Sri
Krishna Agarwal, Sri Ashish Agarwal and
Sri Manu Ghildyal, learned Standing
Counsel for the revenue authorities.

2. This writ petition along with the
other petitions mentioned in paragraph 4
below, have been filed by individual
petitioners, to challenge initiation of reassessment proceedings under Section 148
of the Income Tax Act, 1961 for different
assessment
years.
All
reassessment
proceedings have been initiated upon
notices issued after the date 01.04.2021.

3.

These
petitions
had
been
entertained and interim protection granted.
Pursuant to earlier orders passed in the
leading petitions - Writ Tax Nos. 524 of
2021 and 521 of 2021 and other matters,
the revenue and the Union of India were
required to file counter affidavits in those
cases. Copies of such counter affidavits
were, under a direction of this Court,
served on all learned counsel for the
petitioners. Replies by way of rejoinder
820 INDIAN LAW REPORTS ALLAHABAD SERIES
affidavits have also been received in some
of the cases. Those affidavits thus filed,
have been read in all the writ petitions.

4. Since, the dispute arising in the
present writ petitions is purely legal, with
respect to the validity of the re-assessment
proceedings initiated against the individual
petitioners, after 01.04.2021, having resort
to the provisions of the Income Tax Act,
1961 (hereinafter referred to as the 'Act') as
they existed, read with the provisions of
Act No. 38 of 2020 and the notifications
issued
thereunder,
the
peculiar
fact
pleadings of each case are not material to
the adjudication of the legal issues involved
here. However, for the purposes of
convenience, the basic relevant facts,
obtaining in each individual case are
recorded in the below given chart:

5. As to the exact challenge raised, it
may be noted, the petitioners have
challenged the validity of the re-assessment
notices issued to them, under Section 148
of the Act. Another challenge has been
raised to the validity of the Explanation
appended to clause (A)(a) of CBDT
Notification No. 20 of 2021, dated
10 All. Ashok Kumar Agarwal Vs. Union of India & Ors.
821
31.03.2021 and Explanation to clause
(A)(b) of CBDT Notification No. 38 of
2021,
dated
27.04.2021.
Those
notifications have been issued under the
powers vested under Section 3(1) of the
Act 38 of 2020 namely, the Taxation and
Other
Laws
(Relaxation
of
Certain
Provisions) Act, 2020 (hereinafter referred
to as the 'Enabling Act').

6. Before recording the individual
submissions advanced by learned counsel
for the parties, we may take note of the
legislative provisions giving rise to the
issues before us. Prior to enforcement of
the Finance Act, 2021, the law for making
re-assessment under the Act was governed
by the provisions of Sections 147, 148, 149
read with Sections 150, 151, 152 and 153
of the Act. Under that law, the jurisdiction
to reassess an assessee could arise upon
necessary 'reason to believe' being recorded
by the jurisdictional Assessing Officer, of
that assessee - as to escapement of any
income from assessment. Subject to the
rule of limitation and prior sanction (where
applicable), the Assessing Officer would
then assume jurisdiction to reassess such an
assessee, by issuing a notice under Section
148 of the Act.

7. As to the challenge procedure
available to that assessee, the Supreme
Court, in the case of GKN Driveshafts
(India) Ltd. Vs. Income-tax Officer,
(2003) 259 ITR 19 (SC), had observed as
below:

"We see no justifiable reason to
interfere with the order under challenge.
However, we clarify that when a notice under
section 148 of the Income Tax Act is issued,
the proper course of action for the noticee is
to file return and if he so desires, to seek
reasons for issuing notices. The Assessing
Officer is bound to furnish reasons within a
reasonable time. On receipt of reasons, the
noticee is entitled to file objections to
issuance of notice and the Assessing Officer
is bound to dispose of the same by passing a
speaking order. In the instant case, as the
reasons have been disclosed in these
proceedings, the Assessing Officer has to
dispose of the objections, if filed, by passing a
speaking order, before proceeding with the
assessment in respect of the abovesaid five
assessment years."

8. Around March, 2020, the pandemic
COVID-19 reached our shores and spread all
over country. It led to enforcement of a
lockdown. Even thereafter, life is yet to
normalise. The pandemic severely impacted
the normal functioning of the Government as
also all other institutions and it obstructed the
normal life of the citizens as well. In such
facts, judicial intervention had been made by
the Supreme Court as also by this Court, to
relax the rules of limitation - to institute
various
proceedings.
The
Central
Government also recognized that difficulty
and promulgated the Ordinance No. 2 of
2020 dated 31.03.2020 titled Taxation and
Other
Laws
(Relaxation
of
Certain
Provisions) Ordinance, 2020 (hereinafter
referred to as the 'Ordinance'). Relevant to
our discussion, the introductory text of the
said Ordinance together with provisions of
Sections 1, 2 and 3 of the Ordinance are
quoted below:

"TAXATION AND OTHER LAWS
(RELAXATION OF CERTAIN

PROVISIONS)
ORDINANCE,
2020

NO.2 OF 2020, DATED 313-2020

Promulgated by the President in
the Seventy-first Year of the Republic of
India.
822 INDIAN LAW REPORTS ALLAHABAD SERIES

An
Ordinance
to
provide
relaxation in the provisions of certain Acts
and for matters connected therewith or
incidental thereto.

WHEREAS, in view of the spread
of pandemic COVID-19 across many
countries of the world including India,
causing immense loss to the lives of people,
it has become imperative to relax certain
provisions, including extension of time
limit, in the taxation and other laws;

AND WHEREAS, Parliament is
not in session and the President is satisfied
that circumstances exist which render it
necessary for him to take immediate action;

NOW, THEREFORE, in exercise
of the powers conferred by clause (1) of
article 123 of the Constitution, the
President is pleased to promulgate the
following Ordinance.

CHAPTER I

PRELIMINARY

 Short title and commencement

1. (1) This Ordinance may be
called the Taxation and Other Laws
(Relaxation
of
Certain
Provisions)
Ordinance, 2020.

(2) Save as otherwise provided, it
shall come into force at once.

Definitions

2. (1) In this Ordinance, unless
the context otherwise requires,--

(a) "specified Act" means --

(i) the Wealth-tax Act, 1957 (27
of 1957);

(ii) the Income-tax Act, 1961 (43
of 1961);

(iii) the Prohibition of Benami
Property Transactions Act, 1988 (45 of
1988);

(iv) Chapter VII of the Finance
(No. 2) Act, 2004 (22 of 2004);

(v) Chapter VII of the Finance
Act, 2013 (17 of 2013);

(vi)
the
Black
Money
(Undisclosed Foreign Income and Assets)
and Imposition of Tax Act, 2015 (22 of
2015);

(vii) Chapter VIII of the Finance
Act, 2016 (28 of 2016); or

(viii) the Direct Tax Vivad se
Vishwas Act, 2020 (3 of 2020).

b)
"notification"
means
the
notification published in the Official
Gazette.

(2) The words and expressions
used herein and not defined, but defined in
the specified Act, the Central Excise Act,
1944 (1 of 1944), the Customs Act, 1962
(52 of 1962), the Customs Tariff Act, 1975
(51 of 1975) or the Finance Act, 1994 (32
of 1994), as the case may be, shall have the
meaning respectively assigned to them in
that Act.

CHAPTER II

RELAXATION
OF
CERTAIN
PROVISIONS OF SPECIFIED ACT

Relaxation of certain provision of
specified Act.

3. (1) Where, 'any time-limit' has
been specified in, or prescribed or notified
under, the specified Act which falls during
the period from the 20th day of March,
2020 to the 29th day of June, 2020, or such
other date after the 29th day of June, 2020,
as the Central Government may, by
notification, specify in this behalf, for the
completion or compliance of such action
as--

(a) completion of any proceeding
or passing of any order or 'issuance of any
notice', intimation, notification, sanction or
approval or such other action, by whatever
name called, by any authority, commission
or tribunal, by whatever name called,
under the provisions of the specified Act; or

b) filing of any appeal, reply or
application or furnishing of any report,
document, return statement or such other
10 All. Ashok Kumar Agarwal Vs. Union of India & Ors.
823
record, by whatever name called, under the
provisions of the specified Act; or

(c) in case where the specified
Act is the Income-tax Act, 1961 (43 of
1961), --

(i) making of investment, deposit,
payment,
acquisition,
purchase,
construction or such other action, by
whatever name called, for the purposes of
claiming any deduction, exemption or
allowance under the provisions contained
in --

(I) sections 54 to 54GB or under
any provisions of Chapter VI-A under the
heading "B.--Deductions in respect of certain
payments" thereof; or

(II) such other provisions of that
Act, subject to fulfillment of such conditions,
as
the
Central
Government
may,
by
notification, specify; or

(ii) beginning of manufacture or
production of articles or things or providing
any services referred to in section 10AA of that
Act, in a case where the letter of approval,
required to be issued in accordance with the
provisions of the Special Economic Zones Act,
2005 (28 of 2005), has been issued on or
before the 31st day of March, 2020 (28 of
2005),

and
where
completion
or
compliance of such action has not been made
within such time, then, the time limit for
completion or compliance of such action shall,
notwithstanding anything contained in the
specified Act, stand extended to the 30th day of
June, 2020, or such other date after the 30th
day of June, 2020, as the Central Government
may, by notification, specify in this behalf:

Provided
that
the
Central
Government may specify different dates for
completion or compliance of different actions.

Provided further that such action
shall not include payment of any amount as
is referred to in sub-section (2).

(2) Where any due date has been
specified in, or prescribed or notified
under, the specified Act for payment of any
amount towards tax or levy, by whatever
name called, which falls during the period
from the 20th day of March, 2020 to the
29th day of June, 2020 or such other date
after the 29th day of June, 2020 as the
Central Government may, by notification,
specify in this behalf, and such amount has
not been paid within such date, but has
been paid on or before the 30th day of
June, 2020, or such other date after the
30th day of June, 2020, as the Central
Government may, by notification, specify in
this behalf, then, notwithstanding anything
contained in the specified Act, --

(a) the rate of interest payable, if
any, in respect of such amount for the
period of delay shall not exceed threefourth per cent for every month or part
thereof;

(b) no penalty shall be levied and
no prosecution shall be sanctioned in
respect of such amount for the period of
delay.

Explanation.-- For the purposes
of this sub-section, "the period of delay"
means the period between the due date and
the date on which the amount has been
paid."

Further,
in
view
of
the
submissions as have been received, it
would be fruitful to also quote the
provisions of Chapter III of the Ordinance -
containing the amendments made to the
Act. It reads:

"CHAPTER III

AMENDMENT
TO
THE
INCOME-TAX ACT, 1961

Amendment of sections 10 and
80G of Act 43 of 1961

4. In the Income-tax Act, 1961, with
effect from the 1st day of April, 2020 (43 of
1961), -
824 INDIAN LAW REPORTS ALLAHABAD SERIES

(i) in section 10, in clause (23C),
in sub-clause (i), after the word "Fund", the
words
and
brackets
"or
the
Prime
Minister's Citizen Assistance and Relief in
Emergency Situations Fund (PM CARES
FUND)" shall be inserted;

(ii) in section 80G, in sub-section
(2), in clause (a), in sub-clause (iiia), after
the word "fund", the words and brackets
"or the Prime Minister's Citizen Assistance
and Relief in Emergency Situations Fund
(PM CARES FUND)" shall be inserted."

9. Acting in exercise of powers vested
under
the
Ordinance,
the
Central
Government then issued Notification Nos.
35 of 2020, 39 of 2020 and 56 of 2020,
dated
24.06.2020,
29.06.2020
and
29.07.2020, respectively. Briefly, by those
Notifications, general time extension was
granted under the Act for certain purposes.
Since, the present dispute does not arise in
the context of those Notifications, no useful
purpose would be served in extracting their
contents.

10. The aforesaid Ordinance was
succeeded by the Enabling Act. It received
the assent of the President on 29.09.2020
and was published in the Official Gazette,
on that date itself. It was enforced
retrospectively,
with
effect
from
31.03.2020. By the Enabling Act, further
provisions were made in addition to the
provisions of Section 3 of the Ordinance.
We may therefore take note of Sections 1, 2
and 3 of the Enabling Act. They read as
below:

"THE
TAXATION
AND
OTHER LAWS (RELAXATION AND

AMENDMENT OF CERTAIN
PROVISIONS) ACT, 2020

NO. 38 OF 2020

[29th September, 2020.]

AN ACT to provide for relaxation
and amendment of provisions of certain
Acts and for matters connected therewith
or incidental thereto.

BE it enacted by Parliament in
the Seventy-first Year of the Republic of
India as follows:--

 CHAPTER I

 PRELIMINARY

1. (1) This Act may be called the
Taxation and Other Laws (Relaxation and
Amendment of Certain Provisions) Act,
2020.

(2) Save as otherwise provided, it
shall be deemed to have come into force on
the 31st day of March, 2020.

2. (1) In this Act, unless the
context otherwise requires,--

(a)
"notification"
means
the
notification published in the Official
Gazette;

(b) "specified Act" means--

(i) the Wealth-tax Act, 1957;

(ii) the Income-tax Act, 1961;

(iii) the Prohibition of Benami
Property Transactions Act, 1988;

(iv) Chapter VII of the Finance
(No. 2) Act, 2004;

(v) Chapter VII of the Finance
Act, 2013;

(vi)
the
Black
Money
(Undisclosed Foreign Income and Assets)
and Imposition of Tax Act, 2015;

(vii) Chapter VIII of the Finance
Act, 2016; or

(viii) the Direct Tax Vivad se
Vishwas Act, 2020.

(2) The words and expressions
used herein and not defined, but defined in
the specified Act, the Central Excise Act,
1944, the Customs Act, 1962, the Customs
Tariff Act, 1975 or the Finance Act, 1994,
as the case may be, shall have the same
meaning respectively assigned to them in
that Act.
10 All. Ashok Kumar Agarwal Vs. Union of India & Ors.
825

CHAPTER II

RELAXATION
OF
CERTAIN
PROVISIONS OF SPECIFIED ACT

3. (1) Where, any time-limit has
been specified in, or prescribed or notified
under, the specified Act which falls during
the period from the 20th day of March,
2020 to the 31st day of December, 2020, or
such other date after the 31st day of
December,
2020,
as
the
Central
Government may, by notification, specify in
this
behalf,
for
the
completion
or
compliance of such action as--

(a) completion of any proceeding
or passing of any order or issuance of any
notice, intimation, notification, sanction or
approval, or such other action, by whatever
name called, by any authority, commission
or tribunal, by whatever name called,
under the provisions of the specified Act; or

(b) filing of any appeal, reply or
application or furnishing of any report,
document, return or statement or such
other record, by whatever name called,
under the provisions of the specified Act; or

(c) in case where the specified
Act is the Income-tax Act, 1961,--

(i) making of investment, deposit,
payment,
acquisition,
purchase,
construction or such other action, by
whatever name called, for the purposes of
claiming any deduction, exemption or
allowance under the provisions contained
in--

(I) sections 54 to 54GB, or under
any provisions of Chapter VI-A under the
heading "B.--Deductions in respect of
certain payments" thereof; or

(II) such other provisions of that
Act, subject to fulfilment of such conditions,
as the Central Government may, by
notification, specify; or

(ii) beginning of manufacture or
production of articles
or
things
or
providing any services referred to in
section 10AA of that Act, in a case where
the letter of approval, required to be issued
in accordance with the provisions of the
Special Economic Zones Act, 2005, has
been issued on or before the 31st day of
March, 2020,

and
where
completion
or
compliance of such action has not been
made within such time, then, the time-limit
for completion or compliance of such
action shall, notwithstanding anything
contained in the specified Act, stand
extended to the 31st day of March, 2021, or
such other date after the 31st day of March,
2021, as the Central Government may, by
notification, specify in this behalf:

Provided
that
the
Central
Government may specify different dates for
completion or compliance of different
actions:

Provided further that such action
shall not include payment of any amount as
is referred to in sub-section (2):

Provided also that where the
specified Act is the Income-tax Act, 1961
and the compliance relates to--

(i) furnishing of return under
section 139 thereof, for the assessment year
commencing on the--

(a) 1st day of April, 2019, the
provision of this sub-section shall have the
effect as if for the figures, letters and words
"31st day of March, 2021", the figures,
letters and words "30th day of September,
2020" had been substituted;

(b) 1st day of April, 2020, the
provision of this sub-section shall have the
effect as if for the figures, letters and words
"31st day of March, 2021", the figures,
letters and words "30th day of November,
2020" had been substituted;

(ii) delivering of statement of
deduction of tax at source under subsection (2A) of section 200 of that Act or
statement of collection of tax at source
826 INDIAN LAW REPORTS ALLAHABAD SERIES
under sub-section (3A) of section 206C
thereof for the month of February or
March, 2020, or for the quarter ending on
the 31st day of March, 2020, as the case
may be, the provision of this sub-section
shall have the effect as if for the figures,
letters and words "31st day of March,
2021", the figures, letters and words "15th
day of July, 2020" had been substituted;

(iii) delivering of statement of
deduction of tax at source under subsection (3) of section 200 of that Act or
statement of collection of tax at source
under proviso to sub-section (3) of section
206C thereof for the month of February or
March, 2020, or for the quarter ending on
the 31st day of March, 2020, as the case
may be, the provision of this sub-section
shall have the effect as if for the figures,
letters and words "31st day of March,
2021", the figures, letters and words "31st
day of July, 2020" had been substituted;

(iv) furnishing of certificate under
section 203 of that Act in respect of
deduction or payment of tax under section
192
thereof
for
the
financial
year
commencing on the 1st day of April, 2019,
the provision of this sub-section shall have
the effect as if for the figures, letters and
words "31st day of March, 2021", the
figures, letters and words "15th day of
August, 2020" had been substituted;

(v) sections 54 to 54GB of that
Act, referred to in item (I) of sub-clause (i)
of clause (c), or sub-clause (ii) of the said
clause, the provision of this sub-section
shall have the effect as if -

(a) for the figures, letters and
words "31st day of December, 2020", the
figures, letters and words "29th day of
September, 2020" had been substituted for
the time-limit for the completion or
compliance; and

(b) for the figures, letters and
words "31st day of March, 2021", the
figures, letters and words "30th day of
September, 2020" had been substituted for
making such completion or compliance;

(vi) any provisions of Chapter VIA under the heading "B.-- Deductions in
respect of certain payments" of that Act,
referred to in item (I) of sub-clause (i) of
clause (c), the provision of this sub-section
shall have the effect as if--

(a) for the figures, letters and
words "31st day of December, 2020", the
figures, letters and words "30th day of July,
2020" had been substituted for the timelimit for the completion or compliance; and

(b) for the figures, letters and
words "31st day of March, 2021", the
figures, letters and words "31st day of July,
2020" had been substituted for making such
completion or compliance;

(vii) furnishing of report of audit
under any provision thereof for the
assessment year commencing on the 1st
day of April, 2020, the provision of this
sub-section shall have the effect as if for
the figures, letters and words "31st day of
March, 2021", the figures, letters and
words "31st day of October, 2020" had
been substituted:

Provided also that the extension
of the date as referred to in sub-clause (b)
of clause (i) of the third proviso shall not
apply to Explanation 1 to section 234A of
the Income-tax Act, 1961 in cases where
the amount of tax on the total income as
reduced by the amount as specified in
clauses (i) to (vi) of sub-section (1) of the
said section exceeds one lakh rupees:

Provided
also
that
for
the
purposes of the fourth proviso, in case of
an individual resident in India referred to
in sub-section (2) of section 207 of the
Income-tax Act, 1961, the tax paid by him
under section 140A of that Act within the
due date (before extension) provided in that
Act, shall be deemed to be the advance tax:
10 All. Ashok Kumar Agarwal Vs. Union of India & Ors.
827

Provided also that where the
specified Act is the Direct Tax Vivad Se
Vishwas Act, 2020, the provision of this
sub-section shall have the effect as if--

(a) for the figures, letters and
words "31st day of December, 2020", the
figures, letters and words "30th day of
December, 2020" had been substituted for
the time limit for the completion or
compliance of the action; and

(b) for the figures, letters and
words "31st day of March, 2021", the
figures, letters and words "31st day of
December, 2020" had been substituted for
making such completion or compliance.

(2) Where any due date has
been specified in, or prescribed or
notified under the specified Act for
payment of any amount towards tax or
levy, by whatever name called, which
falls during the period from the 20th day
of March, 2020 to the 29th day of June,
2020 or such other date after the 29th
day of June, 2020 as the Central
Government may, by notification, specify
in this behalf, and if such amount has not
been paid within such date, but has been
paid on or before the 30th day of June,
2020, or such other date after the 30th
day of June, 2020, as the Central
Government may, by notification, specify
in this behalf, then, notwithstanding
anything contained in the specified Act,--

(a) the rate of interest payable,
if any, in respect of such amount for the
period of delay shall not exceed threefourth per cent. for every month or part
thereof;

(b) no penalty shall be levied
and no prosecution shall be sanctioned in
respect of such amount for the period of
delay.

Explanation.--For the purposes
of this sub-section, "the period of delay"
means the period between the due date
and the date on which the amount has
been paid."

11. Reference has also been made to
provisions of Chapter III to the Enabling
Act. Numerous amendments were made to
the Act as were not contemplated by the
Ordinance. While no useful purpose would
be served in extracting the entire contents
of Section 4 of the Enabling Act, it would
be useful to reproduce, and indicate some
of the provisions amended, together with
reference to the date from which such
amendments were made effective.
828 INDIAN LAW REPORTS ALLAHABAD SERIES

12. On 29.10.2020, Notification No.
88 of 2020 was issued by the Central
Government for the purposes of extension
of time limits stipulated under Section 139
of the Act. For ready reference, the said
provision reads as below:

"MINISTRY
OF
FINANCE

(Department
of
Revenue)

(CENTRAL
BOARD
OF
DIRECT TAXES)

NOTIFICATION

New
Delhi,
the
29th
October, 2020

TAXATION AND OTHER
LAWS

S.O. 3906(E).-In exercise of the
powers conferred by sub-section (1) of
section 3 of the Taxation and Other Laws
(Relaxation and Amendment of Certain
Provisions) Act, 2020 (38 of 2020)
(hereinafter referred to as the Act), the
Central Government hereby specifies, for
the purpose of the said sub-section (1),
that, in a case where the specified Act is the
Income-tax Act, 1961 and the compliance
for the assessment year commencing on the
1st day of April, 2020, relates to -

(i) furnishing of return under
section 139 thereof, the time-limit for
furnishing of such return, shall-

(a) in respect of the assessees
referred to in clauses (a) and (aa) of
Explanation 2 to sub-section (1) of the said
section 139, stand extended to the 31st day
of January, 2021; and

(b) in respect of other assessees,
stand extended to the 31st day of
December, 2020:

Provided that the provisions of
the fourth proviso to sub-section (1) of the
Act shall, mutatis mutandis apply to these
extensions of due date, as they apply to the
10 All. Ashok Kumar Agarwal Vs. Union of India & Ors.
829
date referred to in sub-clause (b) of clause
(i) of the third proviso thereof.

(ii) furnishing of report of audit
under any provision of that Act, the timelimit for furnishing of such report of audit
shall stand extended to the 31" day of
December, 2020.

2. This notification shall come
into force from the date of its publication in
the Official Gazette."

13. Then, on 31.12.2020, another
Notification No. 4805 (E) was issued under
Section 3(1) of the Enabling Act. Without
making
any
specific
reference
to
reassessment proceedings under the Act,
time extensions were granted. For ready
reference, that provision reads as below:

"NOTIFICATION S.O. 4805
(E) [NO. 93/2020/F. No.

 370142/35/2020-TPL],
DATED 31.12.2020

In
exercise
of
the
powers
conferred by sub-section (1) of section 3 of
the Taxation and Other Laws (Relaxation
and Amendment of Certain Provisions) Act,
2020 (38 of 2020) (hereinafter referred to
the Act) and in supersession of the
notification of the Government of India in
the Ministry of Finance, (Department of
Revenue) No. 88/2020 dated the 29th
October, 2020, published in the Gazette of
India, Extraordinary, Part-II, Section 3,
Sub-section (ii), vide number S.O.