Calcutta HC Upholds Assessment Order on ground of Passing of Order with approval of ‘Specified Authority’ u/s 151(ii) of Income Tax Act [Read Order]

The Calcutta High Court upheld the assessment order passed under section 148A(d) of the Income Tax Act, 1961 on the ground of passing of order with the approval of specified authority which was defined under section 151(ii) of the Income Tax Act. 

Giriraj Commercial Private Limited, the petitioner filed a writ petition against the validity of the assessment order passed under section 148(d) of the Income Tax Act. 

Brijesh Kumar Singh and Om Prakash Prasad, the counsels for the petitioner contended that the approval had been taken from the Principal Commissioner of Income Tax.

Also stated that when admittedly the specified authority for approval in this case was the Principal Chief Commissioner of Income Tax for three years had not been passed from the end of the relevant assessment year on the date when the impugned order was passed. 

Further submitted that as per section 151(ii) of the Income Tax Act the approval should be done by the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General if more than three years had elapsed from the end of the relevant assessment year. 

Smita Das, the counsel for the respondent contended that relied on the decisions made by the lower authorities and contended that the approval was correctly done by the adjudicating authority and the assessment order was passed as per the law and liable to be sustained. 

The Court observed that the impugned order passed under section 148A(d) of the Income Tax Act was very much within three years in this case and as such for passing the impugned order, the Principal of Commissioner of Income Tax and not the Principal Chief Commissioner of Income Tax was “Specified Authority” for approval. 

A single-member bench comprising Nizamuddin. J held that the approval for passing the order under Section 148A(d) of the Income Tax Act was legal and valid and the aforesaid impugned order does not call for any interference by the writ petition and dismissed the writ petition filed by the petitioner. 

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