2022 (8) TMI 1586 - HC - Income Tax

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 ... Validity of order u/s 148A(d) - as argued impugned order is without jurisdiction and in contravention of Section 149(1)(a) of the Income Tax Act, 1961 - period of limitation - notice beyond three years from the end of the relevant assessment year where the income escaped does not exceed Rs.50 lakhs HELD THAT:- On perusal of the notice under Section 148A(b), find that even in that notice also, the assessing officer has recorded that income chargeable tax is amounting to Rs.22,66,575/- which is admittedly below Rs.50 lakhs. Income Tax authority could not justify and convince this Court in defending the impugned order under Section 148A(d) of the Act. Considering the facts and circumstances of this case as appears from record and submission of the parties, this writ petition is disposed of by quashing the aforesaid impugned re-assessment proceeding. 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.