PCIT not Authorised Authority: Calcutta HC quashes Reopening of Assessment of HUF [Read Order]
![PCIT not Authorised Authority: Calcutta HC quashes Reopening of Assessment of HUF [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/12/PCIT-Authorised-Authority-Calcutta-Highcourt-Assessment-of-HUF-Reopening-of-Assessment-of-HUF-taxscan.jpg "PCIT not Authorised Authority: Calcutta HC quashes Reopening of Assessment of HUF [Read Order]")
The Calcutta High Court, chaired by Justice Md. Nizamuddin, declared that the Impugned notice issued under S. 148 A(b) of the Income Tax Act 1961 is Invalid. however, the Income Tax Authorities were free to pursue further legal action. The matter involves the assessee's re-assessment for the A.Y. 2016–17, for which a notice under Section 148A(b) of the Income Tax Act was issued. In...
The Calcutta High Court, chaired by Justice Md. Nizamuddin, declared that the Impugned notice issued under S. 148 A(b) of the Income Tax Act 1961 is Invalid. however, the Income Tax Authorities were free to pursue further legal action.
The matter involves the assessee's re-assessment for the A.Y. 2016–17, for which a notice under Section 148A(b) of the Income Tax Act was issued. In this situation, the authorities under Section 151(ii) of the Income Tax Act are the proper authorities for granting approval.
The Section 151(ii) of the Income Tax Act states about the specific authority to approve the notices issued under Section 148 and 148A of the Income Tax Act.
Principal Chief Commissioner or Principal Director General, or in their absence, Chief Commissioner or Director General, were authorised to approve the notice given under sections 148 and 148A of the Income Tax Act if the reassessment occurs after three years from the end of the assessment year.
Aryak Dutt, who appeared on behalf of the respondent in accordance with the Calcutta High Court's order, indicated in his explicit instructions that the Principal Commissioner of Income Tax, who is not the authority covered by Section 151(ii) of the Income Tax Act, approved the notice under Section 148A(b) of the Income Tax Act.
The bench emphasised that because the approval of the impugned notice was not issued by the proper authorities, it cannot be sustained by the law. The court further ruled that the contested notice issued pursuant to Section 148A(b) of the Income Tax Act and that all related procedures lack legal backing and should be quashed.
The court further stated that the competent Income Tax authorities will not be prevented from commencing any further legal proceedings in the future as a result of the quashing of the impugned notice and related proceedings.
To Read the full text of the Order CLICK HERE
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