Impugned Order Under Section 148A(d) Quashed for Lack of Jurisdiction and Delay Beyond Three Years

The HC held that the impugned order under Section 148A(d) was without jurisdiction as the escaped income did not exceed Rs. 50 lakhs and the notice was issued beyond the three-year limitation period under Section 149(1)(a) of the Income Tax Act. The assessing officer's own notice under Section 148A(b) recorded escaped income of Rs. 22,66,575, which is below the threshold. The tax authority failed to justify the reassessment. Consequently, the HC quashed the reassessment proceedings initiated under Section 148A(d).

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The Calcutta High Court, in WPA No.18828 of 2022, addressed a challenge to the impugned order dated 20th July 2022 under Section 148A(d) of the Income Tax Act, 1961, concerning assessment year 2017-18. The petitioner contended that the reassessment was without jurisdiction and violated Section 149(1)(a), which prohibits reopening assessments beyond three years if escaped income does not exceed Rs. 50 lakhs. The assessing officer's notice under Section 148A(b) recorded escaped income of Rs. 22,66,575/-, below the Rs. 50 lakhs threshold. The respondent failed to justify the reassessment. The Court held that reopening was impermissible and accordingly quashed the reassessment proceedings, disposing of the petition.

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