The Calcutta High Court has held that the order under section 148A(d) of the Income Tax Act, 1961 is invalid if the same is issued after three years of relevant assessment year and the amount escaped from tax is below Rs. 50 lakhs.
The petitioner, Ekaksh Commerce Pvt Ltd has challenged the impugned order relating to assessment year 2018-19 on the ground that the same being without jurisdiction and contrary to the provision of Section 149(1)(a) and (b) of the Income Tax Act, 1961 by contending that admittedly the impugned notice has been issued after the expiry of three years from the end of relevant assessment year and it is also an admitted position which appears from the conclusion of the assessing officer himself in the impugned order that the alleged escapement of income is Rs. 36,98,550/- which is below Rs. 50 lakh.
Quashing the order, Justice Md. Nizamuddin held that “Considering the submission of the parties and admitted factual and legal position which appears on perusal of the impugned order dated 27th April, 2022, I am of the considered view that the aforesaid impugned order is bad and not sustainable in law and is liable to be quashed for the reason that the impugned notice under Section 148A(b) under the newly amended Act was issued after expiry of three years from the end of relevant assessment year and the alleged escapement of income is below Rs. 50 lakh.”
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