Orissa High Court stays Income Tax Reassessment proceeding initiated after 1st April 2021 under Old Provision [Read Order]

The Orissa High Court while issuing the notice to the Income Tax Department stayed the reassessment proceeding initiated after 1st April 2021 under the old provision.

Mr. P.K. Harichandan, the counsel for the Petitioner, Charana Panda which is a HUF contended that there is a violation of Section 148-A of the Income Tax Act, 1961 and also that the proceedings are time-barred. The competency of the officer who issued a notice under Section 148 of the Act is also questioned.

Mr. T.K. Satapathy, Senior Standing Counsel (Income Tax) accepted notice on behalf of Opposite Parties, Income Tax Officer.

The division bench is headed by Chief Justice Dr. S. Muralidhar and Justice B.P. Routray listed the matter on 23rd September 2021 and issued the notice to the  Income Tax Officer.

Under the new previsions, before issuing notice, AO is required to comply with the procedure under Section 148A. Earlier to April 1, 2021, before issuing of notice under section 148 reason recorded by AO was the requirement. Now from April 1, 2021 issue of notice under section 148A is an opportunity for the assessee to explain his case when revenue requires it to be reopened. AO to give an opportunity to assesses to reply as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause 148A(a).

To Read the full text of the Order CLICK HERE

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