The Calcutta High Court stayed order passed under Section 148A(d) of the Income Tax Act, 1961 on the ground of non-filing of affidavits-in-opposition.
The intra-Court appeal have been filed by the writ petitioners, VRV Trading Co Private Limited, against the order in W.P.A. No.23437 of 2022/ W.P.A. No.23438 of 2022 in and by which the Single Bench had declined to grant any interim order while entertaining the writ petitions and directing affidavitsin-opposition to be filed by the department within four weeks from 22nd November, 2022.
Admittedly, till date, the department has not filed their affidavits-in-opposition. Therefore, if the re-assessment proceedings are allowed to proceed further, then the writ petitions would become infructuous, more so when the department has not complied with the direction issued by the Single Bench to file their affidavits-in-opposition within four weeks from 22nd November, 2022.
The provisions of section 148A as introduced by the Finance Act 2021 as amended by Finance Act 2022. Section 148A(d) of the Income Tax Act reads as:
The Assessing Officer shall, before issuing any notice under section 148-
(d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires.
The Coram consisting of Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya, observed that “We are inclined to grant an interim order sought for by the appellants. Accordingly, the order passed by the assessing officer under Section 148A(d) of the Income Tax Act, 1961 dated 29th July, 2022 / 28th July,2022 and the consequential notice issued under Section 148 of the Act dated 29th July, 2022 / 28th July, 2022 shall remain stayed till the writ petitions are heard and disposed of.”
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