Calcutta HC Dismisses Challenge to Section 148A(b) Reassessment Notice, Directs Taxpayer to Pursue Statutory Appeal [Read Order]
The Court reaffirmed that the writ jurisdiction should not be exercised when an effective alternative statutory remedy is available
Calcutta HC Dismisses Challenge to Section 148A(b) Reassessment Notice
Calcutta HC Dismisses Challenge to Section 148A(b) Reassessment Notice
In a recent ruling, the Calcutta High Court dismissed an appeal filed by a taxpayer challenging the validity of a reassessment notice issued under Section 148A(b) of the Income Tax Act, 1961.
The Division Bench comprising Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) upheld the single bench’s decision refusing to entertain the writ petition and instead directed the taxpayer to avail the statutory appellate remedy provided under the Act.
The petitioner, Mukul Mahanta, had approached the High Court contesting the notice issued under Section 148A(b), the consequential order under Section 148A(d), and the reassessment proceedings that culminated in an assessment order dated 21st March, 2023 under Section 147 read with Section 144B of the Act.
The petitioner argued that the departmental Standard Operating Procedure (SOP) relied upon by the lower court was not applicable to his case. However, the Division Bench found no reason to examine this issue in detail, observing that the appropriate course of action was for the petitioner to file a statutory appeal before the appellate authority challenging the reassessment order.
The Court reaffirmed that the writ jurisdiction should not be exercised when an effective alternative statutory remedy is available. It accordingly directed the petitioner to file an appeal before the relevant appellate authority within 30 days from the date of receiving the server copy of the judgment.
The Bench also clarified that the appellate authority should decide the appeal on its merits without rejecting it on limitation grounds, taking into account the time consumed by the writ proceedings.
The Court further clarified that any observations made by the single bench or in the present judgment would not prejudice the petitioner’s right to raise all contentions in the statutory appeal.
Advocates Himangshu Kumar Ray, Shiwani Shaw, Animitra Roy, Gaurav Chakraborty, Piyas Chowdhury appeared for the petitioner and Adv. Tilak Mitra appeared for the department.
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