Jurisdiction of “Specified Authority u/s 151 of Income Tax Act not Challenged: Calcutta HC Dismisses Writ Petition [Read Order]

The Calcutta High Court dismissed a writ petition as the jurisdiction of “Specified Authority under Section 151 of the Income Tax Act, 1961is not challenged.

The petitioner, Expandable Enterprises Private Limited, has challenged the impugned order under Section 148A(d) of the Income Tax Act, 1961, relating to the assessment year 2019-20, which has been passed after taking approval from “Specified Authority”and after affording an opportunity of hearing to the petitioner and considering the objection/reply filed under Section 148A(b) of the Income Tax Act.

What the petitioner is challenging in this writ petition is not the jurisdiction of the “Specified Authority” who has approved rather petitioner has challenged the legality and merits of the approval itself.

Section 151(1) of the Income Tax Act reads as: No notice shall be issued under section 148 of the Income Tax Act by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice.

Section 151(2) of the Income Tax Act states that: In a case other than a case falling under Section 151(1) of the Income Tax Act, no notice shall be issued under Section 148 of the Income Tax Act by an Assessing Officer, who is below the rank of Joint Commissioner, unless the Joint Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice.

Dismissing the writ petition a Single Bench of the Calcutta High Court observed comprising Md Nizamuddin that “On perusal of Section 151(i) and 151(ii) of the Income Tax Act, 1961 which simply says as to who will be the “Specified Authority” for Section 148 and Section 148A of the Income Tax Act and in this case jurisdiction of the “Specified Authority” who hasapproved for Section 148 and 148A of the Income Tax Act has not been challenged.”

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Expandable Enterprises Private Limited Vs Income Tax Officer , 2023 TAXSCAN (HC) 952 , Mr. Avra Mazumder , Ms. Megha Agarwal & Mr. Suman Bhowmik , Mr. Vipul Kundalia & Mr. Amit Sharma