Issuance Of Notice And Initiation Of Reassessment Proceeding Beyond 6 Years: Calcutta High Court Stays Proceedings
The Calcutta High Court has held that the issuance of notice and initiation of reassessment proceedings were beyond 6 years. Prima facie, it is barred by limitation both under the old Act as well as under the newly amended provision relating to Section 147 of the Income Tax Act, 1961.The single bench of Justice Md. Nizamuddin has observed that the petitioner has been able to make out a...
The Calcutta High Court has held that the issuance of notice and initiation of reassessment proceedings were beyond 6 years. Prima facie, it is barred by limitation both under the old Act as well as under the newly amended provision relating to Section 147 of the Income Tax Act, 1961.
The single bench of Justice Md. Nizamuddin has observed that the petitioner has been able to make out a prima facie case for an interim order by raising the issue of the jurisdiction of the assessing officer in initiating the reassessment proceeding.
The petitioner has challenged the order issued under Section 148A(d) of the Income Tax Act of 1961 for the assessment year 2014-15, as well as all subsequent proceedings based on the notice issued under Section 148 of the Income Tax Act of 1961.
The reassessment proceeding was challenged mainly on the ground of the jurisdiction of the assessing officer in the issuance of the notice under Section 148 being barred by limitation. The assessing officer attempted to justify the initiation of a reassessment proceeding in the order under Section 148A(d) by referring to a CBDT instruction dated May 11, 2022.The issuance of notice and initiation of reassessment proceedings were beyond six years and, prima facie, they were barred by limitation.
The court stayed the proceedings and held that, in the meantime, there would be no further proceedings on the basis of the order till the disposal of the writ petition.
The court listed the matter in the monthly list of November, 2022.
Case Title: SS Commotrade Private Limited Vs. Income Tax Officer
Citation: W.P.A. 19111 of 2022
Dated: 25.08.2022
Counsel For Petitioner: Advocates Kapil Goel, Avra Mazumder, Binayak Gupta, K. Roy, Sk. Md. Bilwal Hossain
Counsel For Respondent: Advocate Om Narayan Rai