Jurisdictional Challenge on Income Tax Reassessment Notice for 2015-16: Court Orders Interim Halt Pending Final Hearing. The HC of Calcutta addressed a jurisdictional challenge regarding a re-assessment notice under Section 148 of the Income Tax Act, 1961, for the assessment ...
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Jurisdictional Challenge on Income Tax Reassessment Notice for 2015-16: Court Orders Interim Halt Pending Final Hearing.
The HC of Calcutta addressed a jurisdictional challenge regarding a re-assessment notice under Section 148 of the Income Tax Act, 1961, for the assessment year 2015-16. The petitioner argued the notice was time-barred under Section 149. The Court found the issue required further examination, directing respondents to file an affidavit-in-opposition, with a subsequent response from the petitioner. The case was set for a final hearing in April 2023. An interim order was granted, halting any proceedings based on the contested notice until the writ petition's resolution.
Issues: Jurisdiction of assessing officer in re-assessment proceeding under Section 148 of the Income Tax Act, 1961
In this judgment by the High Court of Calcutta, the petitioner challenged an order dated 29th July, 2022, under Section 148A(d) of the Income Tax Act, 1961, related to the assessment year 2015-16, along with subsequent proceedings based on the impugned notice issued under Section 148 of the Act. The main ground of challenge was the jurisdiction of the assessing officer in issuing the notice, which was argued to be barred by limitation under Section 149(1)(a)/149(1)(b) of the Income Tax Act, 1961. The assessing officer relied on an instruction from CBDT to justify the re-assessment proceeding, which was beyond the six-year limitation period, prima facie violating both the old and newly amended provisions of Section 147 of the Act.
The Court found that the matter warranted further adjudication and ordered the respondents to file an affidavit-in-opposition within four weeks, with the petitioner given two weeks to respond thereafter. The case was scheduled for final hearing in the monthly list of April 2023. Additionally, the Court directed that no further proceedings should take place based on the impugned order until the writ petition was disposed of, thereby granting an interim order in favor of the petitioner to halt any actions stemming from the challenged notice.
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