The Calcutta High Court, on Tuesday, stayed the proceedings initiated under a re-assessment notice under section 148 of the Income Tax Act, 1961 through the e-portal received on 1st April 2022.
The petitioner, Bhadrish Jayantilal Sheth has challenged the assessment order dated 31st March, 2021 under Section 147 read with Section 144B of the Income Tax Act, 1961 on the ground that the same is without jurisdiction since the basis of the impugned assessment is the impugned notice dated 31st March, 2021 which was received by the petitioner through the official portal on 1st April, 2021. The petitioner further contended that the notice is not sustainable since the alleged escapement of income is below Rs.50 lakhs which has been further substantiated by the impugned assessment order itself wherefrom it appears that the total assessed income determined is Rs.35 lakhs.
Justice Md. Nizamuddin noted that Mr. Rai, advocate appearing for the respondents could not contradict the aforesaid allegation of the petitioner which are substantiated by record but he prays for an opportunity to file affidavit in opposition.
Staying the proceedings, the Court held that “Considering the submissions of the parties, I am of the view that prima facie some questions of law are involved in the matter which requires adjudication on affidavit and petitioner has been able to make out a prima facie case for interim order. Let the matter appear for final hearing seven weeks after the summer vacation. In the meantime, there will be stay of the impugned assessment order and subsequent penalty order dated 31st March 2021.”
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