Conducting Inquiry and Providing Opportunity before Re-Assessment Notice: Calcutta High Court stays Income Tax Proceedings [Read Order]
![Conducting Inquiry and Providing Opportunity before Re-Assessment Notice: Calcutta High Court stays Income Tax Proceedings [Read Order]](https://www.taxscan.in/wp-content/uploads/2021/08/Re-Assessment-Notice-Calcutta-High-Court-Income-Tax-Proceedings-Taxscan.jpg "Conducting Inquiry and Providing Opportunity before Re-Assessment Notice: Calcutta High Court stays Income Tax Proceedings [Read Order]")
The Calcutta High Court has put the re-assessment proceedings initiated by the income tax department while granting interim relief to the assessee on the ground that the provisions of section 148A were not allegedly followed. The petitioner, M/s Bhagvati Prasad Jalan approached the High Court challenging a re-assessment notice issued by the income tax department under Section 148 of the...
The Calcutta High Court has put the re-assessment proceedings initiated by the income tax department while granting interim relief to the assessee on the ground that the provisions of section 148A were not allegedly followed.
The petitioner, M/s Bhagvati Prasad Jalan approached the High Court challenging a re-assessment notice issued by the income tax department under Section 148 of the Act mainly on the ground that the mandatory provisions of Section 148A of the Act which cast a statutory obligation on the Assessing Officer to comply the provisions of the same before issuing any notice under Section 148 of the Act have not been complied with by the Assessing Officer.
Justice Md. Nizamuddin relied on a few High Court decisions delivered recently wherein Courts have stayed the impugned notice under Section 148 of the Income Tax Act, 1961 for non-compliance of the provisions of Section 148A of the Act.
“I have also passed similar order on 15th July 2021 in W.P. No.244 of 2021 (Bagaria Properties And Investments Private Limited & Anr. vs. Union of India & Ors.) reported in [2021] 128 taxmann.com 237 (Calcutta). The learned Advocate for the respondents is not able to deny the allegations of the petitioners that Section 148A provisions of the Income Tax Act, 1961 was not complied with in this case before issuing notice under Section 148 of the said Act and was not able to distinguish the aforesaid unreported decisions. Considering the submissions of the parties, I direct the respondents to file an affidavit-in-opposition within six weeks from the date. Petitioner to file a reply thereto, if any, within two weeks thereafter. List the matter after eight weeks (i.e. 27th September 2021). In the meanwhile, respondents are restrained from proceeding any further on the basis of the aforesaid impugned notice dated 30th June 2021 being Annexure “P-1” to the writ petition,” the Court said.
To Read the full text of the Order CLICK HERE
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