Stay Granted on 2022 Assessment Order After Writ Petition Challenges Income Tax Notice for 2017-2018 Tax Year.

The HC granted a stay on the impugned assessment order dated 29th March, 2022, for 12 weeks or until further notice, following a writ petition challenging a notice under Section 148 of the Income Tax Act for the 2017-2018 assessment year. The respondents must file an affidavit-in-opposition within four weeks, and the petitioner has one week to reply. The final hearing is scheduled after six weeks, with both parties required to prepare short written notes of arguments.

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Issues Involved: Challenge to notice u/s 148 of Income Tax Act for assessment year 2017-2018; Compliance with amended Section 148A; Preliminary jurisdictional objection; Stay of assessment order; Filing of affidavit-in-opposition; Final hearing schedule.

In the present writ petition, the petitioner contested the notice dated 31st March, 2021 u/s 148 of the Income Tax Act concerning the assessment year 2017-2018. The petitioner argued that the notice, issued on 1st April, 2021, failed to adhere to the formalities outlined in the newly introduced amended Section 148A of the Income Tax Act. The petitioner raised a preliminary jurisdictional objection through a letter dated 19th January, 2022. Despite this objection, the impugned assessment order dated 29th March, 2022 was issued without due consideration. Citing precedents from this Court and other High Courts favoring the Assessee/petitioner on the matter, the Court found merit in entertaining the writ petition and granting a stay on the assessment order.

The Court, after reviewing the facts and circumstances on record, ordered a stay on the impugned assessment order dated 29th March, 2022 for a period of 12 weeks from the current date or until further notice, whichever is earlier. Additionally, the respondents were directed to file an affidavit-in-opposition within four weeks, with the petitioner given one week to respond thereafter. The matter was scheduled for final hearing after six weeks, during which both parties were instructed to have short written notes of arguments prepared for the proceedings.

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