Re-Assessment Proceedings without Notice u/s 148 is Invalid: Calcutta HC [Read Order]

The Calcutta High Court has held that the re-assessment proceedings without issuing a notice under section 148 of the Income Tax Act, 1961 is invalid.

The petitioner, Govardhan Commodities Pvt. Ltd has challenged the impugned assessment order dated 19th March 2022 under Section 147 read with Section 144 of the Income Tax Act, 1961 relating to the assessment year 2014-15 being Annexure P-5 to the writ petition, on the ground that the same was passed without serving any notice under Section 148 of the Income Tax Act, 1961 which is a condition precedent for initiating proceeding under Section 147 of the Act.

Allegedly, the petitioner after getting the impugned assessment order has made several correspondences asking the respondent Assessing Officer to provide document in support of proof of service of the impugned notice under Section 148 of the Act, but failed to get the same.

Allowing the writ petition on the ground of violation of natural justice principles, Justice Md. Nizamuddin held that “Considering the submission of the parties and the facts and circumstances as appears from record, the impugned assessment order dated 19th March 2021 is set aside and the case is remanded to the Assessing Officer to pass a fresh re-assessment order in accordance with law by proceeding from the stage of issuance of notice under Section 148 of the Act. Needless to mention that the Assessing Officer will proceed with the re-assessment proceeding in accordance with law and by observing the principle of natural justice.”

To Read the full text of the Order CLICK HERE

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