Final Income Tax Order already Passed in 2009: Calcutta HC Dismisses writ against S. 148 Notice as Infructuous after 15 years [Read Order]

The Calcutta High Court has dismissed a writ petition challenging a reassessment notice under Section 148 of the Income Tax Act, 1961, holding that the plea had become infructuous as the final assessment order had already been passed in 2009.

The petitioner, M/s Rupam Jewellery, had approached the High Court seeking to quash a notice dated 10 July 2009 issued under Section 148 by the Income Tax Officer, alleging escapement of income for Assessment Year 2005-06.

The petitioner claimed that its income had already been assessed for A.Y. 2006-07, and that the reopening of the earlier year’s assessment was arbitrary, vague, and issued without adequate reasons.

The Income Tax Department, however, submitted that the Section 148 notice was issued as early as 31 March 2008, followed by notices under Sections 143(2) and 142(1) in 2009. The Department further informed the Court that a final assessment order under Section 143(3) had been passed on 31 December 2009, determining taxable income of ₹38,46,690 and computing applicable taxes and cess.

During the proceedings, the Department also pointed out that the petitioner had failed to annex the impugned Section 148 notice with the writ petition and had filed the case nearly 20 months after the issuance of notice. The Court observed that the absence of the notice itself made it difficult to assess whether due procedure had been followed.

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Considering the Department’s affidavit and the production of the final assessment order, Justice Gupta held that the writ petition no longer survived. Since the assessment had already attained finality in 2009 and the petitioner had not challenged that order through the statutory appellate mechanism, the Court found no justification to interfere.

The Court ruled that, “The present writ petition ultimately becomes infructuous since the final assessment order has already been passed long back. The same has not been challenged as yet by the petitioner.”

The Bench of Justice Ajay Kumar Gupta said that a writ court cannot adjudicate disputed questions of fact, especially when the petitioner has an alternative statutory remedy under the Income Tax Act to contest the final assessment.

Accordingly, the Calcutta High Court provided a closure to 15-year-old proceedings that had been pending since the issuance of the original reassessment notice in 2008, stating that once a final order is passed, a challenge to the earlier notice becomes redundant.

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